Right now, employers are feeling the pressure to fill positions. In September, small businesses had the highest share of job openings on records dating back to 2000, per an analysis from Julia Pollak, chief economist at ZipRecruiter. Of those hiring or trying to hire, 90 percent reported few or unqualified applicants for open positions, according to the latest Small Business Optimism Index from the National Federation of Independent Business.
So, although labor demand overall is down from 2022, owners still need to present convincing offers to prospective employees. Strong benefits can play a crucial role here, argues Stephan Scholl, CEO of the human capital technology and services provider Alight Solutions. It’s a worthwhile investment, too, as labor can comprise as much as 70 percent of total business costs, he says: “So, if it’s your most expensive asset–and I think it is an asset–then you better treat your asset right.”
Here are few benefits that experts say could become even more important in 2024:
1. Mental health resources
Already, employers rank health-related benefits as the most important among benefit categories in 2023, according to this year’s Employee Benefits Survey from the Society for Human Resources Management. But more than just physical health, offering mental health-related benefits has become increasingly popular with companies since the pandemic. Scholl adds that as worker mental health continued to decline this year, the benefit will only tick up in the rankings.
2. Support for aging
The U.S. workforce is becoming more multi-generational, as the middle age in the U.S. reached a record high this year and the average retirement age continues to grow, from 57 in 1991 to 61 in 2022. Combined with declining birth rates, this means that employers need to prepare for more older workers on their team and in their talent pipeline.
“We’re seeing more and more employers put a focus on things like traditional 401(k) and other retirement plans,” says Jim Link, chief human resources officer for the Society for Human Resources Management.
3. Help with legal issues
The best benefits for your company may well depend on your workplace demographics, says Taylor Queen, senior HR advisor at Insperity.
One benefit that’s particularly popular with younger workers is employer-sponsored legal services, providing access to married an attorney when employees, for instance, buy a home or get, says Cynthia Smith, senior vice president of regional business at MetLife. Eighty-four percent of Gen Zers identified legal offerings as a nice-to-have or must-have benefit in 2023, topping all of the other age demographics, per data from MetLife.
4. Inclusive offerings
In thinking about how to improve their employee experience next year, company leaders need to think holistically and inclusively, says KeyAnna Schmiedl, chief human experience officer at Workhuman. That can run the gamut from healthcare benefits that include transgender individuals to expanded definitions for family leave, Schmiedl says.
5. Personalized bennies
A great advantage for small businesses is the ability to quickly create more personalized benefits, Scholl says: “No big company today can compete with that.” Thus, business owners can think outside the box for benefits that could help their company stand apart–and it doesn’t have to cost much.
For instance, Airspeed, the remote-first company that offers mobile apps to help team members connect, plans to give employees the day off for Valentine’s Day, their birthday, and their work anniversary in 2024.
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