In today’s work environment, organizations are looking for ways to improve employee retention and recruitment. Employee benefit offerings are an impactful tool, and organizations need to understand what employees value.
Respondents to the International Foundation’s Employee Benefits Survey: 2024 Survey Report were asked to rate their organizations on their ability to attract and retain quality workers. The following information highlights some considerable differences between organizations that rated their ability to attract and retain workers favorably (high performers) and those that experienced more difficulties attracting and retaining employees (low performers).
Health Insurance
Health insurance is a key employee benefit. High performers tend to have fewer cost-management measures in place compared with low performers, as described by the following.
- High-deductible health plan (HDHP) with a health saving account (HSA) (used by 51% of high performers vs. 64% of low performers)
- Prior authorization and utilization management (used by 62% of high performers vs. 76% of low performers)
- Case management (used by 57% of high performers vs. 70% of low performers)
- Disease management (used by 48% of high performers vs. 78% of low performers)
- Prescription drug step therapy/therapeutic substitution (used by 40% of high performers vs. 60% of low performers)
- Prescription drug prior authorization or utilization management (used by 54% of high performers vs. 76% of low performers)
Paid Leave
Overall, high performers tend to offer more time away from work than low performers, and they offer it earlier in employment.
PTO Days
- Available upon hire (76% of high performers vs. 57% of low performers)
Paid Holidays
- Christmas Eve (offered by 57% of high performers vs. 40% of low performers)
- Full week between Christmas Day and New Year’s Eve (offered by 15% of high performers vs. 5% of low performers)
Number of Paid Floating Holidays
- Zero (offered by 36% of high performers vs. 54% of low performers)
- Seven or more (offered by 7% of high performers vs. 2% of low performers)
Maternity and Paternity Leave
- Maternity leave above and beyond legal requirements (offered by 58% of high performers vs. 44% of low performers)
- Paternity leave above and beyond legal requirements (offered by 43% of high performers vs. 19% of low performers)
Retirement Plans
Retirement plans are very important benefits organizations offer. High performers and low performers had very similar findings regarding retirement plans. However, there were some exceptions.
Compared with low performers, more high performers:
- Offer defined benefit (DB) plans (45% vs. 30%)
- Offer both DB plans and defined contribution (DC) plans (34% vs. 24%)
- Use automatic enrollment (73% vs. 50%)
- Provide annuities as a final distribution option (33% vs. 19%)
- Have a higher average DC plan participation rate (81% vs. 63%)
Miscellaneous Benefits
In addition to health insurance, retirement benefits and paid leave, organizations have a variety of other benefits and perks they can offer their workers. Overall, more high performers offer the following benefits to their workers compared with low performers.
Work–Life Benefits
- Financial assistance for adoption (offered by 27% of high performers vs. 13% of low performers)
- On-site or near-site child care (offered by 9% of high performers vs. 2% of low performers)
At-Work Perks
- On-site and/or takeout meals (offered by 21% of high performers vs. 11% of low performers)
- Student loan counseling/refinancing/consolidation (offered by 13% of high performers vs. 3% of low performers)
- Meditation/mindfulness training (offered by 36% of high performers vs. 21% of low performers)
- On-site massages (offered by 18% of high performers vs. 8% of low performers)
- Fertility benefits (offered by 50% of high performers vs. 36% of low performers)
Disability Coverage
- Short-term disability coverage available immediately upon hire (offered by 41% of high performers vs. 25% of low performers)
- Long-term disability coverage, requires a six-month waiting period before employees are eligible (7% of high performers vs. 18% of low performers)
The information in this article touched on some of the many benefits that organizations can offer their employees. The Employee Benefits Survey: 2024 Survey Report provides a more comprehensive examination of the employee benefit landscape.
