Top 10 Employee Benefits Trends in 2024 for Attracting and Retaining Talent
With today's tight labor market and skills shortages, staying on top of emerging employee benefits trends has become more important than ever for Canadian companies. Offering a competitive and compelling benefits package can provide a key advantage when it comes to attracting top talent and retaining valued employees. According to Mercer's 2024 Employee Benefits Trends report, "the ability to offer personalized benefits will be a competitive differentiator and drive success in acquiring talent."
As employees prioritize areas like work-life balance, mental health, and financial wellbeing, organizations need to understand the latest trends and expectations. Getting ahead of the curve with forward-thinking benefits initiatives can demonstrate that your company values employees and supports their needs. This allows you to stand out from competitors and build an engaged, productive workforce. With Canada's shifting demographics, tight labor pool, and increased desire for flexibility and wellbeing support, staying on top of emerging benefits trends is no longer optional - it's a strategic imperative.
Flexible Work Arrangements Are Now a Must-Have
Studies show that flexible work options have become a top priority for today's workforce. According to Mercer's 2023 Canada Flexible Working Policies & Practices Survey, 78% of Canadian employees said flexibility is key when evaluating a new job opportunity. Flexibility ranked as the second most important factor after compensation. Another survey by Randstad Canada found that 75% of workers wanted more flexibility in when and where they work.
In response, forward-thinking companies are implementing flexible schedules and remote work policies. For example, Shopify allows employees to work remotely or adopt a hybrid in-office/remote schedule. Employees can choose when and where they work each week based on what fits their lifestyle best. Other companies like CIBC and RBC have adopted core in-office days while allowing employees to work remotely the rest of the week. This allows teams to still connect in-person regularly while providing more flexibility. Arrangements like flex hours and compressed work weeks are also on the rise, giving employees more control over their schedules.
Offering this flexibility has become crucial for attracting and retaining top talent in Canada's tight labor market. Companies unwilling or unable to provide flexible options will likely struggle to compete for workers going forward.
Mental Health Benefits are Expanding
Mental health and wellness benefits have become a top priority for many employees today. According to the 2023 Benefits Canada Healthcare Survey, 12% of plan sponsors don't provide any coverage for mental-health counseling, up from just 6% in 2021, indicating demand is rising significantly. Employees are looking for comprehensive mental health coverage and support programs from their employers.
In response, many companies are expanding their mental health and wellness offerings. Some examples include providing coverage for counseling through an employee assistance program (EAP), apps that offer access to mental health assessments and tools, onsite meditation spaces, bringing in therapists for group sessions, and designating mental health days that employees can take off.
The Government of Canada notes that EAPs are a valuable benefit that provides confidential, short-term counselling and referral services for employees and their family members. Many companies are enhancing their EAP offerings to ensure robust mental health coverage. By prioritizing mental health, companies can build a more supportive, resilient and productive workforce.
Diversity, Equity and Inclusion Initiatives
Diversity, equity and inclusion (DEI) initiatives have become a major focus and recruiting advantage for many companies in Canada. With shifting societal attitudes and growing awareness around systemic inequities, businesses are realizing they need to create more inclusive workplaces that embrace diverse identities, perspectives and backgrounds.
According to the Government of Canada, "a diverse workforce and inclusive workplace culture are critical to innovation and growth. They help organizations access wider talent pools, respond to changing demographics in society, and benefit from diverse perspectives."
As a result, forward-thinking companies are implementing more inclusive policies and benefits, such as extended health coverage for gender affirmation procedures, fertility treatments, and adoption; flexible work arrangements for caregivers; hiring initiatives focused on underrepresented groups; employee resource groups; and mandatory DEI training.
For example, Shopify recently announced 12 weeks of paid leave for employees who want to foster or adopt a child. This helps create an inclusive culture for caregivers.
Ultimately, embracing DEI allows companies to tap into wider talent pools, while also enabling current employees to feel welcomed, supported, and able to thrive.
Leveraging Technology
HR technology is playing an increasingly important role in enhancing and streamlining employee benefits delivery. According to Mercer's 2022 report on benefits tech trends, "Leveraging benefits technology allows employers to achieve more while minimizing administrative burden and uncertainty. It streamlines transactional activities, consolidates data, and provides predictive analytics for better decision making."
Some examples of how technology is improving benefits administration include:
Self-service apps that allow employees to view benefits info, enroll, make changes, etc. on their own time. This boosts engagement and saves HR teams time (Mercer).
Telemedicine and virtual care options that provide easy access to healthcare without needing to go into a doctor's office.
Online benefits platforms that consolidate all HR data onto a single system, avoiding hassles of switching between multiple dashboards (Businessolver).
Analytics that uncover usage trends and opportunities to optimize benefits plans and spending.
By embracing new HR tech tools, companies can create a more seamless benefits experience for employees while also maximizing administrative efficiency. The key is finding solutions that integrate well and provide useful data insights.
Unique Perks
With the tight labor market, companies are getting creative with the perks and programs they offer in order to stand out. Surveys show that along with good pay and benefits, today's employees want some unique extras from their employers.
Some examples of creative perks companies are offering include:
Paid sabbaticals - Companies like Adobe and Deloitte offer employees a paid month-long sabbatical every 5-10 years on the job.
Free meals - Companies like Eventbrite and Asana provide free daily meals and snacks in the office.
Wellness stipends - REI offers employees $300 annually to spend on wellness activities and gear.
Pet insurance - Companies like Google and Microsoft offer pet insurance policies employees can opt into.
Adoption and fertility benefits - Starbucks provides employees with $10,000 in adoption aid and $20,000 for surrogacy and in vitro fertilization services.
Student loan repayment - Aetna reimburses employees up to $2,000 annually for student loan repayments.
Offering creative benefits like these can give companies a competitive edge in attracting and retaining talent. Employees appreciate companies that invest in their overall wellbeing and life outside of work.
Health & Wellness
Companies are placing a greater emphasis on health and wellness benefits to promote employee physical and mental health in 2024. According to the 2024 Employee Wellness Industry Trends Report from Wellable, 89% of companies now offer some form of health and wellness benefit, up from just 65% in 2020. The most common types of wellness benefits focus on nutrition, fitness, and preventative health screenings.
For example, 38% of companies provide onsite gyms and fitness classes, while 34% offer discounts on gym memberships and fitness trackers. To encourage healthy eating, 27% of companies offer onsite nutrition counseling and healthy snacks or meals. Many are also holding wellness challenges focused on exercise, nutrition, stress management, and more. Preventative health benefits are also popular, with 57% of companies providing biometric screenings and 44% offering flu shot clinics.
According to the Cigna 2024 Workplace Wellness Trends survey, these efforts are paying off through lower healthcare costs and higher productivity. Companies investing in wellness saw healthcare costs rise just 1% annually compared to 5% for companies without strong wellness programs. And over 80% of employees at companies with wellness benefits report higher job satisfaction and engagement levels.
Financial Wellbeing
Financial wellness has become a major focus for employers in recent years. With rising costs of living and debt burdens like student loans weighing on employees, companies are taking steps to support financial wellbeing.
According to PwC's 2023 Employee Financial Wellness Survey, 49% of employees feel stressed about their finances. Companies can help by offering financial planning assistance, student loan repayment contributions, and access to personalized advice. PwC notes that benefits like these can improve retention.
Leading companies are partnering with financial wellness platforms to provide employees with tools to manage spending, save for goals, reduce debt, and plan for retirement. Apps and online portals give employees 24/7 access to resources. Onsite seminars and workshops are also valuable for providing financial education.
With the cost of living rising, employees need support building emergency savings funds as a buffer. Some companies offer matching contributions when employees put money into rainy day savings accounts. Others provide low-interest loans to help cover unexpected expenses.
By making financial wellness a priority, employers can empower employees to gain control of their finances, reduce stress, and focus their energy into being more productive at work.
Professional Growth
Professional growth opportunities are highly desired by today's workforce. Offerings that support career development and skills training can give companies a competitive edge.
Tuition reimbursement programs help employees pursue additional education like college degrees, certificates, or training programs. Companies like Starbucks offer up to $24,000 in tuition coverage. Cisco Systems provides $10,000 annually for career development courses. Tuition assistance shows employees you support their long-term career aspirations.
Training stipends allow employees to attend conferences, seminars, workshops, and other development opportunities. Providing a set amount each year for employees to use, with easy approval processes, enables continuous learning. For example, HubSpot offers a $3,000 annual stipend.
Internal development programs are another option, like mentorships, job shadowing, and stretch assignments. Rotational programs let employees gain experience across departments. These opportunities help retain and engage talent while building skills.
Overall, a strong focus on professional growth through multiple offerings will help attract and retain top talent in today's market.
Key Takeaways
As we've seen, there are several key employee benefits trends that forward-thinking companies should focus on in 2024 in order to stay competitive and attract top talent.
Offering flexible work arrangements is now a must-have. Employees today expect options like hybrid remote/in-office schedules, flex hours, and compressed work weeks. Companies that don't offer flexibility will be left behind.
Mental health and wellness benefits like counseling, meditation apps, and stress management programs are becoming standard. With burnout and anxiety on the rise, these benefits provide vital support.
Diversity, equity and inclusion initiatives also give companies a recruiting edge. Offerings like caregiver leave, gender transition support, employee resource groups, and customized mentoring help create welcoming and supportive workplaces.
Leveraging HR tech tools to deliver seamless benefits experiences is crucial. Mobile apps, chatbots, and self-service portals allow employees to easily understand and utilize their benefits.
Finally, creative perks and programs help companies stand out. Offerings like paid sabbaticals, professional development stipends, free meals and snacks, volunteer time off, and more differentiate leading employers.
By proactively enhancing their benefits offerings in these key areas, companies can get ahead of trends, boost employee satisfaction and retention, and gain a competitive edge in attracting top talent.