Navigating the Future: 2024 Top 5 Employee Benefit Trends
As employers and advisers start a new year, the focus shifts to understanding the evolving landscape of employee benefits. Navigating through the unknowns and making necessary adjustments requires a strategic approach with benefit flexibility.
Investing in the right employee health benefits can drive better outcomes, for employees as well as for the business. To guide employers and advisers on navigating the new year, we’ve compiled 5 key 2024 employee benefit trends, as well as why they matter. Let’s dive in.
5 Employee Benefit Trends to Watch in 2024
Trend #1: Managing Cost-Sharing
In the face of rising healthcare costs, employers are adopting cost-sharing measures to mitigate premium increases and prevent unnecessary plan utilization. Co-pays, co-insurance and deductibles play a crucial role in this strategy.
But cost shifting can be tricky. Going too far can trigger unwanted results when it comes to talent retention. That’s where exploring supplemental health insurance benefits like Ultimate Health® by ArmadaCare can help offset out-of-pocket healthcare expenses for employee populations as defined by the employer. And if the employer wants to keep the deductible in play on our executive medical reimbursement plans, we offer customizable deductible options, too.
Trend #2: Retaining Talent
Employee health benefits play a significant role in attracting and retaining a competitive workforce. With 90% of business leaders recognizing the critical nature of benefits, organizations are focusing on enhancing their offerings.1
As businesses contend with a multi-generational workforce, meeting age-and-stage needs becomes crucial for maintaining a healthy and loyal employee base. The right benefits not only attract but also retain talent, providing tax-efficient* compensation enhancements and targeted benefits that align with different generational needs.
Trend #3: Aligning Benefits with Employee Expectations
Happy and healthy employees are more satisfied, engaged and productive. Employers are recognizing the link between employee well-being and key talent metrics. However, there’s a growing disconnect between offered benefits and employee satisfaction, indicating a need for adjustments.
Supporting holistic employee well-being, with benefits that include valuable insured coverage, enhanced access to care, and support for mental health, is essential for both employee satisfaction and business success.
Trend #4: Total Rewards
Employees now view benefits and compensation holistically, especially executives and strategic leaders. With turnover being a costly concern, businesses are exploring ways to protect key leaders and difficult-to-recruit talent.
Employer-sponsored supplemental health insurance plans offer the flexibility to tailor health benefits to different employee groups and provide meaningful, tax-efficient* compensation value. Striking the right balance between cost and coverage is imperative for retaining top talent.
Trend #5: Executive Health & Productivity
Leaders face unique health risks, and work-related stress can impact their well-being significantly. Traditional health insurance plans often fall short in providing the necessary support for executive health.
According to our 19+ years of experience of creating and executing executive health programs, a 360° approach is critical. ArmadaCare’s Ultimate Health®, an employer sponsored supplemental health insurance plan, includes an Executive Physical (EP) Program. This approach includes navigation services and coverage to support leaders on their journey to better health, so they take back control of their health and be more focused at work.
The Bottom Line:
Employee benefit trends will continue to shape the employee benefits landscape into 2024. Innovative, flexible benefits—like ArmadaCare’s supplemental health insurance solutions—can help employers address changing expectations while finding the right balance between coverage and cost.
*This is not local, state or federal tax advice as each person and each company is unique. It is recommended that you seek the independent counsel of a professional tax adviser.
ArmadaCare’s insurance policies are underwritten by SiriusPoint America Insurance Company and Transamerica Life Insurance Company. Insurance plans and coverages vary by state. Please contact us to confirm state availability.
__________________