December edition
With 2019 coming to a close, this is a good time to scan the employee benefits horizon for trends to expect in 2020.
The good news is the economy continues to grow, which means there are plenty of jobs. Unemployment remains at 3.6 percent, which is a 48-year low.1 At the same time, competition to hire the best employees is fierce, with more employers adding generous benefits to attract and keep top talent.
As a result, employee benefits have evolved into an essential currency for retention and recruiting. Here are some of the top trends in employee benefits across the country for 2020:
Financial wellness
According to a 2019 PwC survey, about 60 percent of employees are so concerned about their finances it’s impacting their health.2 Plus employees who worry about finances are less productive than those who don't. Robust financial wellness programs help businesses stand apart, relieve employee stress and raise productivity. These benefits also give employees the tools to address maxed-out credit cards and under-funded retirement accounts.
Paid leave
With up to 80 percent of employees living paycheck to paycheck, many don't have enough saved up for maternity leave or to cover extended hospital stays.3 To rectify this ongoing problem, more companies are providing generous leave benefits for the birth of a child and long-term care.
Student loan debt relief
More new employees are leaving college with student debt that will take years to pay off. Employers are stepping up to help through innovative programs – like allowing employees to transfer paid time off to reduce debt and providing avenues to refinance or consolidate loans.
Flexible scheduling
The typical company loses about 10 percent of its employees to competitors annually due to inflexible work rules.3 Because employees are also parents, caretakers and part-time students, smart companies are providing flexible work schedules. Millennials, in particular, want work-from-home options to help meet their personal commitments.
The icing on the cake
HR professionals will also see the rise of benefits that don’t cost companies much, but help make life a little easier for their employees. Think of these benefits as icing on the cake. They include paid smartphones for business and personal use (50 percent of companies already provide this benefit), as well as commuting and parking reimbursements.3
As employers continue to sweeten their offerings to attract the best candidates, watch for these top benefits.
Want to stay up to date on what’s trending in employee benefits for 2020 and beyond? Let’s talk.