Too Much Time Onboarding?
"2024 is going to be a big year for employee benefits", Kim Buckey, vice president of client services at Optavise, a Carmel, Ind.-based benefits administration firm, mentions to SHRM. While employers need to pay close attention to the needs of their employees so that they can tailor their benefits, some of the rising employee benefits trends to watch out for include the following:
Financial wellness of the employees
This may include offering personalized finance planning, offering financial counselling, conducting debt management programs, offering student loan assistance, giving access to budgeting tools, etc. In fact, a survey conducted by Benefex reported that 65% of employees have mentioned that their organization takes care of their financial wellness.
Apart from financial well-being, employees in 2024 are also looking for workplaces that offer work flexibility. A 2022 CIPD report mentioned that 4 million employees have switched work for better flexibility, and in 2024, too, the demand for flexibility will continue to rise.
Mental health and overall wellbeing
Another employee benefits statistic shows that employees like to have their organizations take care of their overall well-being and mental health. Although many employers already offer several benefits to take care of employee well-being, there’s still scope to do more.
What are the Top Employee Benefits Globally?
While some benefits are more in demand in 2024, certain benefits have always been in demand among employees globally. Some of these include:
- Healthcare coverage
- Flexible benefit package
- Sabbatical and time off
- Rewards and recognitions
- Transportation benefits
- Employee assistance program
- Parental leaves
- Flexible work hours
Top Employee Benefits Stats in 2024
Employee benefits undoubtedly play a key role in employee satisfaction as they add an extra layer of security, privilege, and safety. While each employee is different, and their needs might be different, here are some key benefits that most employees are attracted to. Here are some employee benefits and perks statistics to help you understand how employees feel globally about their benefits and perks at the workplace.
- Did you know that 72% of Americans stress about money at some point in their life? And so, financial wellness will remain one of the top employee benefits in 2024.
- Employee benefits statistics for 2024 in India mention that 59% of employees prefer flexible working while 41% mentioned they prefer working from home. Hence, workplace flexibility is the next most high-in-demand employee benefit in 2024.
- Employee health insurance, although a sought-after benefit by employees, remains low in India. A survey mentions that only 14% of interns and part-time workers have health insurance at the workplace, while 39% of full-time employees are covered with health insurance provided at their workplace. Clearly, there’s a lot of scope for employees to improve here.
- Did you know that 72% of Indians spend the whole of their income on healthcare and 3.2% in deficit due to high healthcare costs? Offering healthcare benefits can be a positive step towards minimizing this gap.
- 89% of health benefits offered by employees include medical, dental, and vision insurance that allows employees to take care of their health.
- 91% of employers across the globe offer retirement savings and planning benefits, including 401(K) plans, financial planning services, and pension plans, giving their people a sense of security when they retire.
Financial Benefits Statistics
Monetary or financial benefits are benefits that employers offer to their employees in addition to salary, such as bonuses, gratuities, commissions, allowances, etc. Financial benefits are a vital part of the employee's overall compensation package.
Here are some interesting stats to ponder upon:
- As per a 2019 report, 59% of workers say they are extremely satisfied with their company when they receive financial benefits.
- 90% of employees say financial benefits help improve their productivity.
- 89% of employees mentioned their financial well-being improved significantly with financial benefits.
- 84% of organizations believe that they can significantly improve employee retention when they offer financial benefits to their employees.
Parental Leave Benefits
Do you know that paid parental leave is one of the most widely paid benefits by employers across the world? More than 120 countries globally offer paid maternity leave by law.
Here are some interesting facts.
- In the US, only 21% of workers have access to paid paternity leave.
- UNICEF recommends any new parent should get 6 months of parental leave.
- A report in McKinsey mentions that globally, 90 out of 187 countries offer statutory paid paternity leave, while 38% of organizations offer paid leave above the statutory minimum.
Health and Wellness Benefits Trends
Like it or not, healthcare is expensive, so employees prefer health and wellness benefits from their employers. Here are some key data to help you understand how it impacts business and what kind of benefit you should include in your offerings.
- A U.S. Department of Labor and U.S. Department of Health and Human Services report found that 80% of US businesses with more than 50 employees offered corporate wellness programs.
- Did you know that there is $20 million of opportunity loss for every 10,000 workers due to poor health conditions that affect the performance of the employees? This means $322 billion cost globally in turnover and lost productivity when low well-being is the primary cause of employee burnout.
- Employees report that when they are not recognized for their work, they are 2.5 times more likely to report burnout at work.
- On the other hand, in a recognition-led wellness initiative, employees are 90% less likely to report burnout at work.
Mental health benefits statistics
As mental health is growing as an area of concern, finding treatment and support is a significant challenge among employees. Although many organisations offer health and well-being benefits, such programs often do not cover mental health. Employers are thus trying to fill the gaps by providing additional mental health benefits. Here are some interesting stats to ponder upon.
- 61% of Gen Z employees mention that they feel anxious, on edge, or nervous at work and prefer their employers to offer mental health programs as part of the benefits.
- 63% of leadership teams are comfortable discussing mental health at the workplace.
- 41% of employees mentioned that they don't have mental health programs at the workplace.
- 43% of US employees mentioned that the mental health benefits offered at their workplace didn't meet their requirements.
- More than 26% of US employees mentioned that the mental health care that they received was substandard.
- 19% of employees mentioned that lower copays for therapies could be helpful for them.
- 1 out of 5 employees mentioned that it would be helpful if employers could provide simplified ways to find therapists who share their background of the same ethnicity or LGBTQ.
Flexible work hours benefit statistics
Since post-COVID remote work and hybrid modes of work have become the new normal, flexibility is one of the most coveted benefits among employees. Flexibility at work not only makes employees happy but makes them productive and loyal, too. Here are some recent trends to think about.
- 40% of global employees say that workplace flexibility is among the top three benefits they consider before starting a new job.
- 72% of Gen Z have left jobs or are considering leaving a job where their employers have not offered flexible working benefits.
- 43% of employees mentioned in a Gartner survey that flexible working hours make them more productive at the workplace.
- Another survey by Airtasker found that remote employees work 1.4 days more every month than their office peers.
- On the other hand, office employees mentioned that they miss 37 minutes each day of not getting work done as compared to remote workers who miss 27 minutes of workday in distractions.
Paid time off benefits statistics
Paid time off is a valuable benefit employers offer their employees. It helps to improve productivity, reduce burnout, and contribute to a healthier work environment. Here are some intriguing stats about it.
- Employer costs for paid leave benefits varied among workgroups in 2022, averaging $0.86 for service workers and $7.50 for management and financial employees.
- The employer cost for paid leave benefits for private industry workers was $2.94.
- 52% of employees mentioned that although they’re on paid time off, they still hop on to a call or check in their work emails.
- Nearly 31% of US employees do not have paid time off, while 28 million workers don't get any paid vacation.
Employee assistance program benefits
An employee assistance program or EAP program offers various support services to the employees, including mental health, overall well-being, financial advice, etc. Here are some important statistics to understand its importance:
- After the implementation of EAPs in the workplace, a 45% improvement was seen in the work-life management of employees.
- 86% of the workforce claimed they felt better after EAP was introduced at their workplace.
- 54% of US employees have access to EAPs, while 88% of UK employees use EAPs.
- The average EAP usage time in the UK is 5%.
- There are more than 839 external EAP service providers globally.
- EAP usage in companies with 5,000 employees and above is 9.95%
- According to EAPA, 95% of companies with over 5000 employees have EAPs in their respective organizations.
Retirement Benefits Stats
Employers offer their employees retirement benefits when they exit the workforce. Retirement benefits ensure social and financial security during the post-employment phase of an employee. Here are some interesting stats:
- 73% of employees had access to retirement benefits in 2023.
- 77% of US employees see retirement benefits as one of the top benefits.
How can Gloroots help manage employee benefits?
Managing global employee benefits is no easy job when expanding your organization beyond geopolitical borders. Organizations need to comply with local labor laws, understand compliance, and consider local culture. That‘s where Gloroots comes in.
Gloroots is an employer of record that helps companies onboard global talent without a local entity and the complexities of paperwork. Gloroots also helps employers offer and manage their employee’s benefits in a manner compliant with local labor laws. Partner with Gloroots today to attract and retain employees with benefits that matter to them.
How much do companies spend on employee benefits?
Each company has its financial budget and goals based on which employee benefits are determined. 20-50% of an employee’s salary is considered a good range.
What are global benefits strategies?
Companies setting their foot in other countries use global benefits strategies that outline the tactics for building employee benefits structures. Company culture, hiring goals, and company budgets are a few factors that are considered when establishing a global benefits strategy.