Employee retention has long been a significant challenge for organizations. Gallup research from 2019 suggests that U.S. businesses lose nearly one trillion dollars annually due to employee turnover.
But pay alone won’t help you plug this million-dollar leak into your business. A robust benefits package is crucial to attract, engage, and retain your best employees. According to a 2022 MetLife study, 73% of employees say that broader benefit offerings would keep them at their employer for longer.
However, knowing which benefits your current and prospective employees want can be challenging for HR teams.
Here are eight employee benefits that are worth considering in 2024.
1. Flexible hours and remote work
Flexible hours entail working on their schedule, often not from 9 to 5. Remote work, however, allows employees to work from home, all or part of the time. Flexible work schedules can benefit employees with children or other obligations outside of work.
How it helps employers:
- Save money on office space.
- Allowing employees to work remotely demonstrates trust and keeps employees engaged and motivated.
2. Commuter benefits
This benefit covers the costs of commuting to and from work daily. It can help employees save money on their commute, which can be a significant expense for many.
How it helps employers:
- Keeps employees happy and satisfied in their jobs.
- Meets corporate sustainability goals.
3. Fitness club memberships
This benefit entails extending employees’ free or subsidized membership to a gym, health club, wellness center, yoga studio, or Zumba club.
How it helps employers:
- Less sick leaves and time off requests by employees.
- Keeps employees more engaged and productive at work.
- Reduces the company’s healthcare costs.
4. Retirement plan
With employees more conscious about their financial health, retirement plans can be vital to attracting and retaining talent in today’s tough hiring market. There are several different types of retirement plans that you can consider, including 401(k) plans, 403(b) plans, and 457 plans.
How it helps employers:
- Increases loyalty and employee satisfaction.
- Tax benefits.
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5. Employee assistance program (EAP)
An EAP gives confidential counseling and support services to employees with personal or work-related difficulties. It involves providing employees with support for a range of issues, such as stress, depression, substance abuse, financial troubles, and relationship problems.
How it helps employers:
- Improves employee well-being and workplace productivity.
- Lower employee turnover and absenteeism rates.
6. Family health insurance
Health insurance is top of mind for most employees as healthcare costs continue to rise. It is a type of medical insurance that covers the medical expenses of employees’ entire family.
How it helps employers:
- Increase retention and boost employee satisfaction.
- Promotes a healthy workforce and reduces absenteeism.
- Tax benefits for the contributed amount.
7. Paid time off (PTO)
PTO allows employees to take off work for several days while still getting paid by their company.
How it helps employers:
- Fosters a more balanced work life.
- Improves workplace diversity.
- Less financial liability owing to limited employee vacation time.
- Reduces unscheduled absences.
8. Child and dependent care benefits
These benefits aim to cover the costs of child and dependent care. They help employees with daycare costs, babysitters, and other caregiving expenses. Some organizations also offer backup child care and on-site daycare services.
How it helps employers:
- Happier and more productive.
- Attracts and retains female employees.
- Improve employees’ mental and physical health.
- Fosters a more balanced work life.
The final word
Employee benefits provide an added sense of security and satisfaction with a job and employer. But it’s tough knowing what employees want when it comes to benefits. Use the above guide to devise a comprehensive employee benefits program that meets your employees’ needs and your business objectives.
Want to know more about HR teams for startups and what it takes to get started? Since 2006, Escalon has helped thousands of startups get off the ground with our back-office solutions for accounting, bookkeeping, taxes, HR, payroll, insurance, and recruiting — and we can help yours, too. Talk to an expert today.
This material has been prepared for informational purposes only. Escalon and its affiliates are not providing tax, legal or accounting advice in this article. If you would like to engage with Escalon, please contact us here.
