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The workforce is constantly changing, and economic and social influences can shape what makes the most effective benefits policy for employees.
This can make it hard to craft a benefits policy that engages staff and keeps them happy. To assist in this, SHRM released its 2023 Employee Benefits Report, outlining the top benefits trends in the US for the year.
The top six ranking benefits for workers were:
- Health (89 per cent)
- Retirement savings and planning (81 per cent)
- Leave (81 per cent)
- Flexible work (70 per cent)
- Family care (68 per cent)
- Professional and career development (67 per cent)
Employers recognise just how important healthcare is for people in the US, with 98 per cent of organisations in the country offering healthcare coverage for employees.
This is a far cry from Australia, where universal healthcare has reduced the need for companies to offer healthcare. Research shows that under 6 per cent of Australian businesses offer health insurance.
SHRM revealed that some areas covered by benefits are seeing a decrease. Mental health coverage dropped from 91 per cent in 2022 to 89 per cent this year.
Meanwhile, wellness programs saw an increase, climbing from 41 per cent last year to 44 per cent in 2023. However, they are still significantly lower than pre-COVID-19 levels, where the figure stood at 59 per cent.
The need for mental health coverage could have something to do with the pandemic, as mental health issues saw a surge due to complications from COVID-19, including prolonged lockdowns. In fact, the World Health Organisation (WHO) said that the pandemic caused a 25 per cent increase to anxiety and depression worldwide.
These alarming statistics could be why mental health support saw a surge at the end of COVID-19, but with things finally getting back to normal in 2023, the need for these services could have taken a back seat.
SHRM recognises changes in society and the economy as factors that influence these statistics. For example, 2023 policies revolve heavily around family, with parental benefits becoming a key concern for employees.
“Significant increases from 2022 were seen in organisations offering paid maternity, paternity or parental leave, as well as adoption leave. In addition, perhaps due to stronger federal protections and accommodations for women who pump breast milk during the workday being enacted in December 2022, more than half of employers offer onsite lactation facilities,” commented SHRM.
“As the national debate about paid family leave continues, the number of organisations offering their workers paid leave (beyond local requirements) continues to rise modestly. Finally, as ‘pandemic pets’ have joined more families, pet insurance has emerged as a way for organisations to distinguish themselves as employers of choice.”
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Benefits include any additional incentives that encourage working a little bit more to obtain outcomes, foster a feeling of teamwork, or increase satisfaction at work. Small incentives may have a big impact on motivation. The advantages build on financial rewards to promote your business as a desirable employer.
Jack Campbell
Jack is the editor at HR Leader.
