2 minute read
In November 2023, Zywave conducted a nationwide survey with over 130 employers from various industries to gather insights on attraction, retention challenges, and voluntary benefits utilization. The survey highlights that many employers see expanding voluntary benefits programs as a crucial strategy to address attraction and retention challenges in 2024, amid increasing demands for higher compensation.
Attraction and Retention Challenges’ Impact on Employee Benefits
Attraction and retention challenges persisted throughout 2023 as employers struggled to find and keep workers. According to Zywave’s 2023 Attraction and Retention Employer Pulse Survey, 60.31% of respondents view attracting and retaining employees as a top-five business challenge. Many employers expect these challenges to remain the same in 2024, with more difficulty in attracting new workers (55.38%) compared to retaining existing ones (46.56%). Labor markets are anticipated to remain competitive but ease up in 2024. Respondents identified matching workers’ compensation demands as a significant challenge. For employers unable to increase compensation, voluntary benefits provide a competitive solution without additional costs.
Voluntary Benefits Programs
Voluntary benefits are popular due to their cost efficiency, portability, and impact on work-life balance. Employees expect and value these benefits, which can be offered at no extra cost. They are easy to implement and require minimal post-implementation support. Providing such programs helps employers control costs, retain talent, and stand out from competitors. The trend is for more employers to expand voluntary benefits in 2024.
Expansion of Voluntary Benefits Programs
As healthcare costs rise, the demand for voluntary benefits increases. Employers face challenges in providing competitive benefits, making voluntary benefits an ideal solution. The survey shows that most respondents plan to offer the same or more voluntary benefits in 2024, emphasizing their importance in meeting employee demands and improving attraction and retention strategies. Common options include dental, vision, and life insurance, with employers expected to offer more financial wellness benefits in 2024 to address attraction and retention struggles.
Employer Takeaway
Survey results indicate ongoing struggles in attracting and retaining talent for organizations. Many employers see expanding voluntary benefits programs as a key strategy to address these challenges and stand out in the competitive labor market. Taking a proactive approach to benefits programs can help employers meet employees' needs and overcome attraction and retention obstacles. Download the bulletin for more details.
