Employee Benefit Trends in 2024: What’s Shifting and Why

Employee benefits and priorities are shifting, reflecting broader changes in how we work and what we value.

  • Mental Health and Wellness Programs Companies are now prioritizing mental health and total wellness programs. This reflects a growing recognition of the importance of mental well-being in the workplace.
  • Unlimited PTO Unlimited paid time off (PTO) is on the rise, with a growing number of companies adopting this flexible approach, promoting work-life balance and trust in employees.
  • Student Loan Repayment Assistance Student loan repayment assistance is increasingly offered, helping to ease the financial burden of educational debt.
  • Life Insurance and Long-Term Disability These benefits remain crucial, with 76% and 68% of companies offering them, providing essential financial security.
  • Flexible Parental Leave Extended paid family leave holds steady at 18%, supporting employees through significant life events.

Emerging and Niche Benefits

  • Paid Sabbaticals Still on the low-end in terms of how many employers offer the benefit, paid sabbaticals reflect a growing recognition of the value of extended breaks.
  • 4 Day Work Week The 4-day work week is gaining momentum with a recent study by KPMG suggesting a whopping 30% of large US organizations are exploring the option.
  • Support During Health Challenges One biotech took a big step in supporting employees diagnosed with cancer securing their jobs, salaries and benefits for one year.
  • Caregiving Benefits Employees at all stages of life have more caregiving responsibilities, many taking their time and focus away from work. Care benefits can help alleviate stress and drive retention.

The benefits landscape in 2024 shows a mix of stability and change. While traditional benefits like life insurance remain important, new trends like mental health support and unlimited PTO are gaining prominence. Notably, trends vary by generation and this can provide challenges for employers to meet needs across their workforce. For employers, understanding these trends is crucial for developing effective benefits packages. Employees should stay informed to advocate for benefits that best support their needs.

Michelle Holahan is VP, Head of Employer Brand. She specializes in digital marketing, media and analytics recruiting for CPG, eCommerce and retailers. She serves as a consultant to employers in understanding the nuances of the market and how employer brand and processes impact talent attraction and retention.