News and Industry Insights

2024 Employee Benefit Trends: A Guide for Small HR Teams

The landscape of employee benefits is constantly evolving, and 2024 promises to be no different. With the continued impact of the pandemic, the rise of remote work, and an ever-growing focus on employee well-being, HR teams of all sizes need to stay ahead of the curve.

For small HR teams, navigating these trends can be a challenge. But fear not! By understanding the key themes and prioritizing effectively, you can craft a benefits package that attracts and retains top talent, even with limited resources.

Here are the top 5 employee benefit trends for 2024 and what your small HR team should consider:

1. Holistic Well-being: Employee well-being goes beyond just physical health. It encompasses mental, emotional, and financial well-being as well.

In 2024, expect to see a surge in benefits that address these holistic needs, such as:

  • Mental health resources: Access to therapists, counselors, and mindfulness programs.
  • Financial wellness programs: Debt management guidance and student loan repayment assistance.
  • Flexibility and remote work options: To promote work-life balance and reduce stress.
  • Personalized benefits platforms: Allowing employees to tailor their benefits to their individual needs.

For small HR teams:

Explore the possibility of incorporating cost-effective mental health resources, such as those offered through telehealth providers. Ensure awareness of existing Employee Assistance Program (EAP) resources, and take the initiative to periodically remind employees of their availability. Promote a proactive approach to mental health by educating both managers and staff on recognizing signs and symptoms, fostering open communication, and creating a supportive workplace environment. Consult with your broker or benefits administrator to ask about services you may have available to you, such as a learning management platform like Zywave. Zywave's catalogue includes courses to enhance the well-being of your workforce with topics covering mental health and stress management.

Consider offering flexible work arrangements and permanent remote work options where feasible. Employers who prioritize flexibility are better positioned to attract and retain talent, foster a positive work culture, and adapt to the dynamic demands of the modern business landscape. In doing so, it is imperative to implement strategies that nurture collaboration and communication in a virtual environment. Encouraging regular team meetings, utilizing collaborative tools, and fostering an open and inclusive digital culture can help bridge the gap. Additionally, providing opportunities for virtual team-building activities and establishing clear communication channels can go a long way in addressing concerns and ensuring hybrid and remote employees feel connected and engaged in the broader organizational mission.

Leverage technology to create a personalized benefits platform, even with a limited budget. Technology not only saves us time and makes us more efficient at managing the benefits program, but giving employee access provides them with a resource to access information from anywhere, at any time, allowing employees to enroll in their benefits, view HR and plan materials, sign and upload required documents, and report life events and changes.

2. Focus on Family and Caregiving:

With the rising cost of childcare and the increasing need for eldercare, family-friendly benefits are becoming increasingly important.

In 2024, expect to see:

  • Expanded parental leave policies: Including paid leave for adoption and surrogacy.
  • Childcare assistance: On-site or subsidized childcare options, or flexible spending accounts for childcare expenses.
  • Eldercare support: Resources and referrals for finding eldercare services, or paid leave for caregiving needs.

For small HR teams:

Partner with local childcare providers or offer flexible work arrangements to support working parents. Explore the possibility of negotiating employee discounts or exclusive arrangements for your staff or consider creating subsidy programs where the company contributes to childcare costs for employees. This can be especially helpful for those facing financial constraints.

Consider offering eldercare resources or a dependent care FSA. A dependent care FSA (DCFSA) can be paired with almost any other kind of consumer account. It is an account to help participants pay for out-of-pocket child care or other dependent care (disabled spouse/child or elder care) expenses.

Advocate for more inclusive parental leave policies within your organization. Engaging with your employees, whether through direct conversations or anonymous surveys, to understand their preferences regarding benefits is a valuable step. Assessing what benefits hold significance for them and identifying those that may be less crucial can guide the design of a tailored benefits plan. Before finalizing any proposals, it's essential to evaluate your budget constraints and familiarize yourself with your state's regulations. Furthermore, conducting research to uncover case studies of companies that have experienced a positive return on investment (ROI) with their leave policies can provide valuable insights and best practices to inform your decision-making process.

3. Financial Security and Retirement Planning:

Financial security is a top concern for employees of all ages.

In 2024, expect to see:

  • Enhanced retirement plan options: Increased employer matching contributions, automatic enrollment, and financial planning resources.
  • Student loan repayment assistance: Helping employees manage their debt and achieve financial freedom.
  • Financial literacy programs: Workshops and resources to help employees make informed financial decisions.

For small HR teams:

Analyze your current retirement plan options and consider ways to improve them, even with limited budget increases. 
Offering your employees a loan repayment plan can be a strategic and beneficial move. There are third-party options available, and partnering with a loan repayment provider can simplify the process and ensure that your employees receive the assistance they need without placing an extensive administrative burden on your organization. Many of them also offer workshops and provide online resources.

4. Personalized and Flexible Benefits:

One-size-fits-all benefits packages are becoming a thing of the past.

In 2024, expect to see:

  • Flexible spending accounts (FSAs): Allowing employees to tailor their benefits to their specific needs, such as healthcare, childcare, or dependent care.
  • Voluntary benefits: Optional add-on benefits like pet insurance or accident insurance.
  • Personalized benefits platforms: Giving employees more control over their benefits choices.

For small HR teams:

If you haven't already, implement FSAs and consider offering a limited selection of voluntary benefits. Online enrollment systems that integrate voluntary benefits ensure employees are aware of these options and make it easier for them to learn about which ones might best meet their needs. 

5. A Focus on Diversity, Equity, and Inclusion (DE&I):

DE&I is not just a buzzword; it's an essential aspect of creating a positive and productive work environment.

In 2024, expect to see:

  • Inclusive benefits: Benefits that cater to the needs of diverse employees, such as gender-affirming healthcare or culturally appropriate wellness programs.
  • Unconscious bias training: Helping managers and HR professionals identify and address unconscious bias in decision-making, including benefits administration.
  • Pay transparency: Openly communicating salary ranges and compensation structures to promote fairness and equity.

For small HR teams:

Engage your benefits broker in a comprehensive review of your current benefits package. Identify where you have opportunities to expand, and give employees a chance to provide feedback on what types of benefits are important to them. Approaching the expansion of coverage with empathy sends a powerful message to employees, emphasizing that their well-being matters to the organization.

Cultivating an empathetic company culture demands intentional effort, and while unconscious bias training may be met with resistance by some, it remains a crucial tool for fostering awareness among employees regarding the impact of their behavior on individuals from diverse backgrounds.

Implementing pay transparency requires careful consideration of organizational culture, industry norms, and communication strategies. While it has the potential to enhance trust and fairness, it also comes with challenges such as privacy, salary inflation, and potential legal risks that need to be addressed to ensure a successful and positive outcome. Each organization should weigh the pros and cons based on its specific context and goals.

In conclusion:

Navigating the ever-evolving world of HR can feel like steering a ship through rapids. But the beauty of change is the immense potential it holds for growth and transformation. By embracing the trends and incorporating even some of these strategies, you can create a more supportive and healthy work environment for all and a company where talent thrives and success flourishes.

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