130+ Employee Benefits Statistics & Trends [2024]

May 3, 2024 0 Comments

Not satisfied with your current job? 

Feeling overworked without adequate perks or a satisfactory salary? 

Perhaps you’ve found yourself switching jobs frequently in search of those elusive extra benefits. 

Is your work efficiency declining due to worries about maintaining a comfortable lifestyle?

If any of these scenarios sound familiar, you’re not alone. Many individuals face similar challenges in today’s dynamic work environment. 

Now, let’s delve into a data-driven insight of employee benefits statistics, where numbers unveil the evolving landscape of workplace perks. 

Employee benefits statistics- Editor’s Pick

Here are the most interesting facts and statistics about employee benefits:

  1. 1 in 10 workers would take a pay cut to have access to better benefits. (Forbes, 2023)
  2. 80% of employees would choose additional benefits over a pay raise (Harvard Business Review)
  3. 59% of employees report intentions to leave a job while noting that increased job flexibility could make them retain their role. (MetLife)
  4. 75% of employees reported they’re more likely to stay with their employer because of their benefit program. (Willis Towers Watson)
  5. 13% more companies have invested in benefit plans over the last 5 years.
  6. 51% of employees see benefits will play a significant role in talent retention.
  7. Employees are now 26% more likely than before the pandemic to accept a new role because of the health and wellness programs it offers. (MetLife)
  8. Research shows that employees’ satisfaction with their employer provided job benefits reached 50% in 2013. This was the highest level in over 10 years!
  9. According to Glassdoor’s 2015 Employment Confidence Survey, about 60% of people report that benefits and perks are a major factor in considering whether to accept a job offer.
  10. Over 80% of employees older than 42 are looking for roles that include employer-covered healthcare. (Forbes 2023)

Most important work benefits

Navigating the employee benefits terrain requires precision with metrics. Are you tuned in to the statistical trends shaping your strategic growth journey?

Here are the most important statistics for work benefits:

Health and wellness benefits

  1. Health Insurance, Dental Insurance, Vision Insurance:67% of employees and 68% of employers believe this to be the most important benefit. (Forbes 2023)
  2. 73% of U.S. workers said health and wellness programs are a consideration in deciding whether to work for a company. (OfficeTeam)
  3. 80% of employers shifted costs to employees instead of cutting benefits due to the rising cost of healthcare. (Aflac, 2023)
  4. 57% of American workers have high anxiety about health care costs beyond what their insurance covers. (Aflac, 2023)
  5. 71% of companies added or are planning to add employee benefits for reproductive health needs. (Maven Clinic, 2023)
  6. 63% of employers plan to increase family health benefits in the next 2-3 years. (Maven Clinic, 2023)
  7. 87% of U.S. employers (91% of global employers) believe family benefits are extremely important to prospective and current employees. (Maven Clinic, 2023)
  8. Health expenditures for businesses are expected to grow by 5.1% through 2030. (CMS)
  9. Private businesses accounted for 17% of all healthcare spending in 2020. (CMS)
  10. 55% of employees note that health and wellness programs are necessary benefits to accept a new job offer. (MetLife)

Financial Wellness

  1. 41% employees see financial wellness as a must have. (Metlife)
  2. 62% of Millennials are more likely to say that their loyalty to their company is influenced by how much the company cares about their financial well-being as compared to Gen X (50%) and baby boomers (36%). (PwC)
  3. 66% of employers plan to increase their support for financial well-being, compared to the current level of 16%. (WTW)

Life Insurance

  1. 45% of employees and 43% of employers named this a top benefit.
  2. 45% of employed Americans claim to have voluntary group life insurance provided by their employer. (OneAmerica)
  3. 88% of executives offered offered life insurance. (Robert Half)

Pension and retirement plans

  1. 34% of employees and 34% of employers agree that planning for the future is vital.  (Forbes, 2023)
  2. 42% of businesses report that their ability to recruit has been improved by their pension scheme. (CBI)
  3. Retirement plans are an important reason to join an organisation for 47% of employees, and an important reason to stay for 60% of people (this is up from 29% and 40% in 2015). (WTW, 2022)
  4. In 2022, 94% of employers offered a traditional 401(k) and 68% offered a Roth 401(k). (SHRM, 2022)
  5. 69% of private industry workers had access to employer-provided retirement plans, 52% choose to participate. (BLS, 2023)
  6. 93% of state and local workers say pensions incentivize public workers to have long public service careers, while 94% say offering a pension is a good tool for attracting and retaining employees. (NIRS)
  7. 74% of Millennial state and local employees say a pension benefit is a major reason they chose a public sector job. (NIRS)

Mandatory paid time off 

  1. Employees value mandatory paid time off more highly than employers are aware: 31% of employees named this a top benefit. (Forbes, 2023)
  2. 40% of 42-57 year-olds are most likely to want mandatory paid time off from their employer. (Forbes, 2023)
  3. 26% of organisations offer paid time off for volunteering. (SHRM)
  4. 3% of employers have extended unlimited paid time off to all employees, 4% are considering it and 9% are considering offering unlimited PTO to only executives or exempt employees. (Mercer)
  5. 52.4% of employees wished they had unlimited paid time off. (Zoro)
  6. 84% of the workforce currently has access to paid time off and 65% did not use all of their PTO allocation last year, with 18% blaming their workload. (TSheets)
  7. 26% of workers say vacation time and paid time off are the most important non-salary factors when considering a job offer. (Accountemps)
  8. 79% of employees who are leaving their current job due to poor company culture say that paid time off is extremely or very important in their next job. (Project: Time Off)

Mental health assistance

  1. 33% of employees and 23% of employers believe mental health assistance to be the most important benefit. (Forbes, 2023)
  2. 91% of organisations offered mental health coverage in 2022, compared to 84% in 2019. (SHRM, 2022)
  3. 21% of employees receive dedicated mental health support from their employer, and an average of 8.4 sick days are taken each year due to a mental health problem. (BHSF)
  4. 72% of employers offered a program for mental health, and 85% of workers said the need for stress management was key in persuading them to participate. (Virgin Pulse)
  5. 43% of HR professionals have personally used or considered using their company’s EAP or mental health benefits. (Access Perks, 2023)
  6. Among employers planning to cut back on employee benefits in 2023 31% will eliminate mental health support. (Care.com, 2023)

Most important culture benefits for workers and employers

In the workplace mural, culture benefits are the vibrant colours, painting a picture of diversity, inclusion, and innovation.

What shades define your organisation? Let us know the stats!

Work-life balance

  1. 51% of employees and 47% of employers named work-life balance as the top priority in company culture.
  2. 45% of employees said they consider a prospective company’s work-life balance a crucial factor when researching a job. (Lexington Law)
  3. Workers who have a good work-life balance are 10% more likely to stay at their companies than those who don’t. (TINYpulse)
  4. 37% of parents said that changing company culture to make work-life balance more acceptable should be a priority for employers. (Working Families)
  5. Work-life balance and wellbeing is a very important factor to 61% of employees when considering a job. (Gallup, 2022)
  6. 82% of employees with the flexibility to manage work and life report they feel mentally healthy, compared to just 45% of employees who don’t have the same flexibility. (MetLife)

Building trust

  1. 20% of employees said it’s important to be trusted by their peers and superiors, and 27% of employers agreed building trust with employees is important. (Forbes 2023)
  2. Employees who clearly understand what’s covered in their benefits package are 101% more likely to trust company leadership. (MetLife)
  3. 54% of employees reported high levels of trust in their HR department. (McLean, 2023)
  4. 37% of employees would trust an advisor recommended by their employer over one they found themselves. (WTW, 2022)

Professional development and skill development

  1. 20% of workers want employers to support their professional development. (Forbes, 2023)
  2. 14% of organisations report increasing professional development benefits offerings this year. (SHRM)
  3. 25% of full-time employees have paid professional development. (Clutch)
  4. 73% of employees say they’d stay at their company if there were more skill-building opportunities. (LinkedIn)
  5. 78% of organisations pay for employee opportunities to develop new skills. (SHRM, 2022)
  6. 16% of organisations report they have programs in place to reskill any employees impacted by automation, offshoring or use of nonemployee talent. (WTW)
  7. 84% of workers believe the skills or degree earned through their employer helped to prepare them for the future of work. (Bright Horizons)
  8. 76% of employees think their employers should provide them with more training in digital skills, but only 44% said their employers are doing so. (Randstad)

Most important remote work benefits for employees

Remote work perks are like a safety net, ensuring employees feel secure as they walk the tightrope of professional and personal demands. How’s your balancing act going?

Flexible hours

34% of employees and 40% of employers named flexible hours a top benefit for remote workers.

Work-provided equipment and home office stipend

  1. 26% of employees and 34% of employers believe work-provided equipment to be a top remote-work benefit. (Forbes, 2023)
  2. 17% of employees and 20% of employers believe home office stipends to be a top remote-work benefit. (Forbes, 2023)
  3. 62% of employers offer a subsidy or reimbursement for at-home office or work equipment, on average giving about $891/person/year. (SHRM, 2022)
  4. Of employers that subsidise or reimburse for at-home office or work equipment, 95% cover technology costs (computers, monitors, headsets, etc), 68% cover the cost of general office supplies (pens, notepads, etc.) and 24% cover the cost of chairs. (SHRM, 2022)

Top perks employers think in-office employees need

Decode the office mystique: Uncover the perks employers swear by for in-office magic. Are you offering the secret sauce?

Free drinks

31% of employers believe it’s important to offer free drinks and 28% that it’s important to offer free food as a fringe benefit, but few employees agree. (Forbes, 2023)

Free snacks and gym

  1. In line with their perception of free drinks as important, 28% of employers considered free food vital, too.
  2. 16% of employers offer free snacks. (ReportLinker)
  3. 36% of employees want a gym membership or onsite fitness centre, 18% want fitness goal incentives, 14% want health coaching, 28% want onsite healthy snacks. (Unum)
  4. 19% of employers offer gym/fitness membership. (ReportLinker)

Team-bonding activities 

Just like they did for remote workers, employers overestimated the importance of team-bonding activities for in-office employees, with 26% of them naming this a top fringe benefit.

Company retreats

Related to their penchant for team bonding (and out of sync with employees’ interest in work-life balance), 20% of employers consider retreats an important benefit.

Top fringe benefits for in-office workers

Discover the perks that keep in-office teams thriving. From flexible hours to employee discounts—boosting morale and productivity. Let’s explore!

Flexible hours

  1. Over 50% of employees want flexible hours, but only 31% of employers believe it’s an important perk. (Forbes, 2023)
  2. 56% of employed Americans say they have utilised or would utilise flexible hours in the workplace. (Cigna)
  3. 17% of people cited flexible hours, 10% a need for freedom and 8% higher compensation as reasons they would leave a traditional job to do freelance work. (ReportLinker)
  4. Employees are now 18% more likely than before the pandemic to accept a new role because it offers a flexible work schedule and the ability to work remotely. (MetLife

Work-from-home options 

  1. 37% of employees said the option to work from home is important even for an in-office role, echoing the need for work-life balance.
  2. 15% or women and 11% of men say that working from home is their top employee perk. (Clutch)
  3. from home or another location, but aren’t able to do so. (Randstad)
  4. 36% of workers report their workplaces support working from home anytime and anywhere they want. (Randstad)
  5. 20% of Small business owners believe their employees are quitting mainly because of Flexible work-from-home options.  (Forbes, 2023)
  6. 86% of IT developers work remotely, with almost one-third working from home full time. (DigitalOcean)
  7. 65% of workers think they’d be more productive working at home than in the office. (FlexJobs)

Employee discounts

  1. 24% of employees named employee discounts as an important perk for in-office work. (Forbes, 2023)
  2. 30% of companies will offer subsidies or discounts on wearables. (Fidelity)
  3. 77% of employers offer free or discounted flu shots. (IFEBP)

Four-day workweek

  1. 19% of workers consider a four-day workweek important, which is in line with the other priorities that support work-life balance and flexibility.
  2. 64% of employees are interested in their employer offering four-day work weeks. (Metlife, 2023)
  3. Compressed workweeks are now offered by one-third of organisations, and four-day workweeks of 32 hours or less per week are offered by 15%. (SHRM)
  4.  50% of advertising and marketing hiring decision makers think productivity would increase if their organisations adopted a compressed work schedule which would allow employees to work four 10-hour days a week. (The Creative Group)

Benefits employees are quitting over

Ever wonder why employees are hitting the exit? What benefits are pushing them away? Here are a few important factors:

  1. Higher pay

32% of employers named this a top reason they believe employees quit. (Forbes 2023) 

  1. Better benefits

26% of employers see this as a reason employees quit, likely a catalyst for the majority of companies that have adjusted their benefits packages recently.

  1. Better advancement opportunities

22% of employers imagine employees leave their current job because they could find more upward mobility elsewhere.

  1. Flexible work-from-home options

20% of employers acknowledge that employees quit over flexible working arrangements, though most employers still didn’t name these benefits among the most important.

  1. Learning opportunities

36% of workers and nearly half of millennials would consider quitting a job that didn’t provide learning opportunities. (Docebo)

  1. Relocate

More than 50% of workers who considered leaving said they would reconsider quitting for a chance to relocate, even if they weren’t given more pay or additional benefits. (Topia)

Top company benefits employers should be aware of

Is your company lagging in providing the required benefits or the knowledge thereof?

Dive into key company benefits that enhance employee satisfaction and performance. Let the stats guide you.

  1. 49% of employees are likely to seek new opportunities in a year because of confusion or dissatisfaction about benefit schemes.
  2. 51% of the workforce believes that retaining staff with benefits will become increasingly important. 
  3. Employees prioritise well-being in transforming work more highly than their executives.

Benefits management data

  1. 74% of surveyed HR professionals said their organisations didn’t add or modify financial management benefits since the start of the pandemic, as of August 2021. (SHRM)
  2. Only 65% of employees say their benefits are easy to understand based on what their employer provided them. (MetLife)
  3. 36% of employees believe their employer is only doing the bare minimum to help them adapt to new working environments. (MetLife)

But how satisfied are the employees with the benefits and perks?

  1. Employees are 70% more likely to remain loyal to their employer if they’re satisfied with their benefits. (MetLife)
  2. 34% of employees say they’re unsatisfied with their current job benefits, up from 28% in 2021. (MetLife)
  3. 86% of employers believe their employees have a strong sense of loyalty to their workplace, while only 36% of employees would recommend their employer to job seekers. (MetLife)
  4. Employees who feel valued and cared for in the workplace are more than three times more likely to be happy at work. (LinkedIn)
  5. 87% of employers believe they prioritise loyalty to their employees, while only 55% of employees believe their employer keeps their best interests in mind. (MetLife)
  6. Employees are 7% more likely now than before the pandemic to accept a new role if the employer has a demonstrated history of supporting training, development, and advancement. (MetLife)
  7. There’s now a 10% greater chance than before the pandemic that employees will accept a new role because of the diversity, equity, and inclusion programs. (MetLife)

Benefits and employee engagement/retention/recruitment stats

  1. 51% of employers say that using benefits to retain employees will become even more important in the next 3 to 5 years.
  2. The cost of replacing an employee can range from 50% to 400% of their annual salary.
  3. Over 40% of workers said their company loyalty would increase if their benefit options were customised to meet their individual needs.
  4. 54% of American workers are content with the benefits their current employer offers. (Forbes, 2023)
  5. According to HR professionals, the primary goal of a benefits program is: (Care.com, 2023)
  • Increasing productivity (53%)
  • Attracting and retaining employees (49%)
  1. Employees who are satisfied with their pay and benefits are 13% more likely to continue working for their current employer for 3+ years. (Qualtrics, 2023)
  2. 77% of organisations that offer supplemental insurance report these benefits     help with recruitment, 80% report they help with retention. (Aflac, 2023)
  3. 47% of organisations report that keeping a competitive total compensation package is one of their biggest challenges. (Aflac, 2023)
  4. 83% of organisations believe their benefits package has a positive impact on worker productivity, 84% that it enables them to recruit top talent, the highest percentages ever reported. (Aflac, 2023)
  5. 80% of organisations believe their employees are highly satisfied with their benefits, however only 58% of employees report high satisfaction. (Aflac, 2023)
  6. Employee satisfaction with benefits is at a 10-year low, reaching 61% in 2023, down from 64% in 2022. (Metlife, 2023)
  7. 83% of employers believe their employees are satisfied with their employee benefits, but only 60% of employees report satisfaction. (Metlife, 2023)
  8. 36% of employees have left or considered leaving a job because of inadequate family benefits. (Maven Clinic, 2023)

Frequently Asked Questions

How important are benefits to employees?

  • Attraction and Retention: Comprehensive benefits are a key factor in attracting top talent and retaining skilled employees, contributing to a competitive edge in the job market.
  • Job Satisfaction: Quality benefits, such as healthcare, retirement plans, and wellness programs, enhance overall job satisfaction and employee morale.
  • Work-Life Balance: Benefits like flexible schedules, paid time off, and family leave contribute to a healthier work-life balance, fostering employee well-being and reducing stress.
  • Productivity and Engagement: Employees with access to meaningful benefits are more likely to be engaged and productive, as they feel supported and valued by their employer.

Which are the best company benefits?

According to studies, the best company benefits by order of importance are:

  • health care (95%), 
  • retirement plans (71%), 
  • paid leave (50%), 
  • flexible working schedules (29%), 
  • investment in professional development (17%), 
  • wellness (11%).

Which benefit cost do companies see as their biggest worry?

  • Healthcare Costs: Rising expenses associated with providing health insurance coverage for employees.
  • Retirement Plans: Managing contributions and maintaining financial sustainability for pension or 401(k) plans.
  • Employee Turnover: The costs associated with recruiting, onboarding, and training new employees due to turnover.

What is the average percentage of employee benefits?

Studies show that, on average, benefits cost companies 32% of their outlay on staff, with the other 68% going to salaries. 

Conclusion 

In essence, the recent employee benefits statistics signal a transformative shift in the workforce. The data compellingly reveals the direct influence of comprehensive benefits on talent acquisition and retention, urging businesses to prioritise enticing packages. These statistics underscore a vital connection between robust benefits, heightened job satisfaction, and overall employee well-being.

As organisations strive for enduring success, adapting to these trends becomes imperative. To proactively navigate this dynamic HR landscape, seize the opportunity to optimise your employee benefits strategy with our tailored solutions. Contact us today for a personalised consultation, ensuring your company stands out and cultivates a content, engaged workforce. rate this

Sources

  1. The Most Desirable Employee Benefits
  2. Best Employee Benefits In 2024
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  4. 2024 Employee Benefit Trends Study
  5. Maven’s State of Women’s and Family Health Benefits 2024
  6. The year employees restructure their relationship with work
  7. 2023 Benefits Trends Survey
  8. Glassdoor: Salary reigns as the top job attraction, but benefits and perks still matter
  9. National Health Expenditure Data
  10. DRIVING SUSTAINABLE GROWTH
  11. Retirement plans for workers in private industry and state and local government in 2022
  12. State and Local Employees Views on Their Jobs, Pay and Benefits
  13. Future of Benefits Report 2023
  14. Are employees satisfied with their work schedules?
  15. Salary Aside, Vacation Time And Corporate Culture Mean The Most To Workers Weighing Job Offers
  16. HR Trends Report for 2023 (and beyond!)
  17. https://www.tinypulse.com/hubfs/EE%20Report%202019.pdf
  18. Why Employers Should Offer Health Insurance & Other Employee Benefits