2.5 minute read
New insights from Mercer's Health and Benefits Strategies for 2024 Survey Report have unveiled a growing demand among employers for enticing benefits options that enhance affordability, provide greater flexibility, and bridge perceived gaps in 2024. According to Mercer, 1 in 4 of the 700 surveyed employers have already made significant enhancements to their benefits programs in the past two years. Moreover, two-thirds of employers have expressed their commitment to incorporating further benefits improvements in the upcoming plan year, aiming to enhance attraction and retention while better meeting the diverse needs of their employees.
Survey Results
Employers expect a 7% increase in healthcare costs in 2024, challenging organizations to balance benefits and cost control. However, the majority of employers plan to enhance benefits to remain competitive.
This year, there is a growing demand for benefits that prioritize women's health, with 46% of employers planning to provide some form of support. Also, the number of employers planning to offer menopause support has skyrocketed, more than tripling since last year's survey.
In 2024, employers are taking steps to enhance the value of their benefits programs by prioritizing employee flexibility. The survey shows that 27% of employers now offer unlimited paid time off to some of their employees, a notable increase from the 22% reported by large employers in 2021. Additionally, paid-time-off policies are evolving to become more inclusive, with a growing emphasis on providing paid parental leave for families of all types. This progressive approach to employee benefits reflects the changing landscape of workplace culture and the recognition of the diverse needs and priorities of today's workforce.
To promote employee flexibility and enhance work-life balance, employers have embraced various options. These include hybrid work arrangements (chosen by 80% of employers), paid time off for volunteering (selected by 49% of employers), remote work options (preferred by 47% of employers), a four-day workweek or consolidated schedule (adopted by 22% of employers), unpaid sabbaticals (offered by 17% of employers), paid sabbaticals (provided by 8% of employers), and even time off to care for a sick or newly adopted pet (embraced by 3% of employers).
Employers are also adopting strategies to manage costs without shifting them to employees, such as implementing programs for specific health conditions and addressing specialty prescription drug costs.
Employer Takeaway
Providing competitive benefits can enhance employee attraction, retention, well-being, and overall satisfaction. However, employers must carefully assess their organization's specific needs and make decisions on whether to eliminate, distribute, or absorb the rising costs of benefits for the upcoming year. Download the bulletin for more details.
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