SHRM 2024 Employee Benefits Survey Overview: A Look at What’s on the Horizon
Quick look: SHRM recently released its annual employee benefits survey depicting what benefits remain high-priority and which are trending upward. Though the popularity of some benefits may not come as a surprise, there are a few important changes to note which brokers can help their clients get ready for.
Every year, SHRM takes an in-depth look at various benefit categories and trends for brokers, HR professionals, and business leaders to have on their radar. As one of the longest-running annual surveys covering employee benefits, it’s been a valuable resource when making decisions about offerings.
Being at the forefront of employee benefit expectations is a significant part of what keeps companies competitive. It also requires finding a balance between meeting employees’ needs and aligning with a business’ budget.
Brokers who partner with a professional employer organization (PEO) provide their small- and medium-sized business (SMB) clients access to premium benefits at approachable costs, which are typically reserved for larger companies. Furthermore, a PEO tailors benefit plans to match what’s best suited for each company based on employees’ unique needs.
So, what should SMBs keep in mind for the coming months? A closer look at the results from the 2024 SHRM Employee Benefits Survey reveals which benefits should be included and what might be expected down the road.
Health-related benefits remain on top
When employees think of benefits, focusing on their health remains the priority. According to this year’s survey, 88% of employees consider healthcare benefits “very important” or “extremely important.” Flexible work (70%) was next in line, followed by family care (67%) and professional career development (65%).
Of the 70% of organizations who said they offer a fully insured health plan, a preferred provider organization (PPO) remained the most common type of health insurance coverage offered, followed by high-deductible health plans (HDHPs) linked with a health savings account (HSA) (63%).
Meanwhile, over half of employers (62%) contribute to their employees’ HSA accounts with dental and vision insurance remaining of top importance. An HSA offers advantages for employees and employers. Employers receive tax benefits through federal payroll deductions, and HSA contributions don’t expire, which allows employees to keep their reserve year over year, even if they switch plans or retire.
Expanding the scope of healthcare coverage
With five generations making up the workplace and adjustments to federal, state, and local regulations to consider, tracking the evolution of benefit demands and the frequency of changes takes a full-time effort.
A few years ago, when the world was at the height of stay-at-home solutions, telehealth became a necessity for many. Additionally, mental health benefits surged as millions of employees faced a spike in stress, anxiety, and burnout.
Since then, the survey reports the demand for telehealth options and mental health coverage has stabilized. However, the switch has been employee expectation of receiving these benefits rather than considering them a bonus.
A “new and notable” shift recognized in the survey is the menopause benefits. Menopause-related benefits include counseling and education, which 17% of employers offer, and menstrual and/or menopause leave in addition to sick time (2%). These percentages are expected to rise as more attention is brought to these matters.
A bipartisan Senate bill written to “improve menopause care and mid-life women’s health, and for other purposes” may soon affect healthcare benefits, and with 9.3% of the total U.S. labor force made up of women ages 45-54, this level of care and corresponding benefits is something companies should be aware of.
The survey also notes family care has become a mainstay for many employees as they juggle caring for young children and providing assistance for aging parents. The need for child care, elder care, and even pet health insurance continue to have an upward trend.
What’s next for retirement benefits
The inclusion of retirement benefits hasn’t wavered with 81% of employers considering them “very important” or “extremely important” year over year. Traditional 401(k) plans lead the way with 94% of those surveyed offering this option, with 84% of employers also offering a 401(k) match.
Retirement savings plans continue to be a standard benefit favored generation-wide, though there have been significant changes, including automatic enrollment requirements, higher contribution matches, and state-sponsored retirement savings plans in certain states.
Often, updates are rolled out over a period of time. A PEO partner provides the knowledge and expertise to ensure broker clients maintain federal and state compliance while proactively advising business leaders on what to expect when regulations are revised.
Preparing for change with a PEO
Even as the survey offers the most recent data regarding benefit trends, the industry is constantly evolving. A PEO partner like ExtensisHR helps broker clients simplify benefit strategies by maintaining compliance, standardizing policies, and staying current with what employees want. As part of a comprehensive suite of HR and benefit services, SMB leaders receive:
Risk and compliance management
Companies must stay compliant with all federal, state, and local laws and effectively communicate these updates to employees. The connection to a PEO partner allows SMBs to minimize risk, costs, and claims so they can focus on their next level of growth.
Benefit administration
ExtensisHR handles the complexities of benefit selection, enrollment, compliance, and administration, alleviating the administrative burden from business owners and HR teams. Plus, mobile-friendly technology has made it easier to access, review, and make changes to essential HR tasks from anywhere, at any time.
Education and communication
Ongoing benefit education and communication for employees is crucial as they may not fully understand the value of the plans available. To ensure employees maximize their benefits and participation, delivering resources and information through multiple modes of communication is key.
The SHRM survey illustrates the direction the industry is headed as brokers and SMBs refine their benefit strategies. As part of a people-first approach, ExtensisHR works collaboratively with brokers and their clients to provide what’s needed to reach their next level of growth.
Contact ExtensisHR today and learn how we can support you in growing your book of business with our full scope of HR and benefit services.
