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Employee benefits help employees feel valued and supported, balance work and personal life, boost mental and physical wellness, and provide support during times of need.
Benefits for 2024 trended toward what is termed “The Big Stay” or “The Great Stay.” This means fewer employees voluntarily left their jobs in 2024, with the quit rate in the United States standing at 1.9%, compared to The Great Resignation at the beginning of the pandemic when the quit rate stood at about 4.5 million employees leaving their jobs monthly.
This article examines key employee benefits statistics from 2024, breaking down what these numbers reveal about employee needs and organizational priorities.
Inclusive and flexible paid time off
Employees advocated for PTO policies encompassing mental health, parental leave, and caregiving needs, expanding beyond the typical 11 to 15 days of PTO. But are employers following suit?
Statistics for 2024
- 87% of American workers have access to some form of PTO.
- 79% of workers have paid vacation.
- Only three states—Maine, Nevada, and Illinois—have laws ensuring employees can earn and use PTO for any reason.
- Federal law does not guarantee paid time off.
Key PTO data takeaway
- No federal guarantees: The lack of federal PTO legislation remains a significant gap, impacting employees’ ability to balance work and life effectively. While most workers can access some form of PTO, making it consistently accessible would require broader legislative support.
Flexibility in work models
Many companies issued return-to-office mandates after the pandemic ended, and this has hurt more than helped, especially for employee engagement. Remote and hybrid work options have become key elements of workplace flexibility, with employees valuing the choice of where and how they work.
Statistics for 2024
- Remote work has become the most valued job aspect for many employees.
- 71% of remote workers say remote work helps improve work-life balance.
- 14% of employees will refuse to return to on-site work if required.
- 79% of managers believe remote work improves productivity.
Key flexibility in work models data takeaways
- High demand: Remote work is important for work-life balance, with many employees prioritizing flexibility over other benefits.
- Productivity gains: Managers have reported improved performance among remote teams, making flexibility a valuable recruitment and retention tool.
Mental wellbeing and mental health
2023 saw employers concerned about the rise of mental health issues in the workplace. Going into 2024, they focused on supporting employees’ mental health, offering more resources, and reducing cost barriers, and employers are taking this issue seriously, which shows in the statistics about employees and mental health.
Statistics for 2024
- 86% of employees are satisfied with being themselves at work, while 4 in 5 are satisfied with emotional support from colleagues.
- 74% of U.S. full-time employees find it appropriate to discuss mental health at work.
- 33% say mental health issues have affected their productivity, while 36% cite work demands as negatively impacting their mental health.
- 92% believe mental healthcare coverage is vital for a positive workplace culture.
Key mental wellbeing and mental health data takeaways
- Supportive culture: A positive environment helps employees feel comfortable at work, and while more employees find it appropriate to discuss mental health, only 58% feel comfortable doing so. More efforts are needed to foster open discussions on mental health.
- Coverage matters: Comprehensive mental healthcare remains a priority, underscoring its importance in employee retention and well-being.
Comprehensive health coverage and prescriptions
Healthcare costs and prescription prices remained significant concerns for employees and employers alike, and many turned to employers for assistance in 2024.
Statistics for 2024
- Medical bills and healthcare costs top Americans’ financial worries.
- 72% of private industry workers have access to health insurance.
- Prescription costs are growing at nearly twice the rate of health benefits, at 6.8%.
- 30% of Americans ration or skip medications due to costs.
Key health coverage and prescription data takeaway
- Affordability concerns: Rising healthcare and prescription costs remain top concerns, driving the need for cost-effective strategies.
Increase in health equity
Strides have been made toward better health equity, but some challenges remain, particularly in the areas of benefits literacy and accessibility.
Statistics for 2024
- Efforts to improve benefits literacy have increased, but 90% of adults still struggle to understand healthcare information.
- The Biden administration has capped insulin costs at $35/month and expanded healthcare coverage, resulting in record enrollments.
Key health equity data takeaway
- Progress in accessibility: Benefits literacy and healthcare access are improving, but further education and resources are needed to achieve true health equity.
Financial wellness
Financial wellness remains a top priority for employees who seek personalized financial guidance and support.
Statistics for 2024
- 74% of employees want personalized financial advice.
- Nearly half of Americans score low on the Personal Finance Index (or P-Fin Index), indicating a need for better financial education.
- 71% of 401(k) plan sponsors offer financial wellness programs, but only 20% of employees use them.
Key financial wellness data takeaway
- Demand for personalized guidance: Employees are looking for tailored financial resources, yet there is a significant gap in engagement with available programs.
What 2024 taught us
Employee benefits data from 2024 shows today’s workforce’s evolving needs and expectations. From the growing importance of mental health and financial wellness to the demand for workplace flexibility and comprehensive health coverage, the statistics highlight both progress and areas for improvement. For employers, these insights serve as a roadmap to refine benefits strategies, ensuring they align with employee priorities and foster a supportive, productive work environment.
By addressing gaps and leveraging what worked well in 2024, organizations can build benefits programs that meet immediate needs and position them as employers of choice.
Content provided by Q4intelligence
Photo by Elnur