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Employee Benefits Trends in 2024

Employers face persistent challenges in the ongoing quest to attract and retain talent amid the post-COVID-19 era. Despite a slight cooling in the labor market for 2024, competition for skilled individuals remains intense. To thrive in this dynamic environment, employers must stay agile and adapt to emerging labor and market trends shaping the year ahead.

Facing Increased Healthcare Costs

The pressing need to balance rising healthcare costs and inflation while providing valuable benefits to employees is a critical challenge. Projections for 2024 indicate a significant surge in healthcare costs, estimated between 6% and 8.5%, marking the highest increase in over a decade. Employers are exploring diverse strategies to mitigate these escalating medical costs like analyzing and redesigning health plan options and allowing the maximum limits for health flexible savings accounts (health FSAs).

Prioritizing Employee Mental Health

Recognizing the widespread impact of mental health issues on employees, employers are making mental health a central theme in 2024. The combination of stress, lack of motivation, and reduced focus has become pervasive, affecting workplace productivity, retention, and morale. Employers are adopting measures such as finding specialized mental health treatment, providing meditation and mindfulness resources, and expanding employee assistance programs.

Promoting Preventative Care Services

Preventative care services take center stage in 2024 as employers recognize their role in maintaining employee health to mitigate long-term costs and enhance overall well-being. Challenges from 2023, such as record-high inflation and soaring medical care costs hindering employees from seeking preventative care, prompt employers to focus on educating employees about the importance of routine care, benefits maximization, and becoming informed healthcare consumers through workshops, newsletters, and other forms of communication.

Understanding and adapting to these key employee benefits trends are critical for employers aiming to attract and retain talent in the evolving labor market. A comprehensive benefits plan contributes to a healthy and engaged workforce and plays a pivotal role in organizational productivity.

Partnering with Pierce Group Benefits

Reach out to your Pierce Group Benefits Account Executive or contact a PGB Representative at partnership@piercegroupbenefits.com to explore how your organization can leverage these trending benefits and other innovative solutions to maximize employee satisfaction. Our team is dedicated to helping you create a workplace that attracts and retains top talent while fostering a culture of well-being and success.