PeopleKeep Survey Highlights Misalignment Between Employee Benefits Expectations And Employer Offerings

In a recent survey conducted by PeopleKeep, part of the Remodel Health organization, a significant gap was identified between what employees value in terms of benefits and what employers are currently offering. The 2024 Employee Benefits Survey, which gathered insights from over 1,000 employers and employees, sheds light on the discrepancies in employer-sponsored benefits and suggests a need for a strategic reallocation of resources by employers.

The survey revealed that the top five benefits valued by employees include health benefits (92%), dental insurance (91%), paid time off (90%), retirement benefits (89%), and vision insurance (81%). Despite the high importance placed on these benefits, only 47% of employees felt that their employer's benefits package met their specific needs. This disconnect highlights a nearly two-thirds consensus among employees on the existence of gaps within their benefits packages.

On the employer side, cost emerged as the primary challenge in offering competitive benefits, with 56% of employers citing it as a significant hurdle. Interestingly, 11% of employers admitted to not offering any benefits at all, underscoring the financial constraints faced by businesses in providing employee benefits.

Employers are recognizing the importance of maintaining a competitive benefits package to retain experienced and quality workers. As one surveyed employer put it, ensuring that benefits remain competitive is crucial to prevent valuable employees from leaving the organization. In response to these challenges, most employers (89%) are planning to enhance their current benefits or introduce additional ones in 2025.

Austin Lehman, CEO of Remodel Health, emphasized the importance of flexible and personalized benefits in bridging the gap between employee expectations and employer offerings. He highlighted health reimbursement arrangements (HRAs) as a cost-effective solution for employers. HRAs are IRS-approved, employer-funded health benefits that allow for reimbursement of individual health insurance premiums, offering an alternative to traditional group policies.

Key Findings and Insights

The survey also uncovered that an employer’s benefits package plays a crucial role for 81% of employees when deciding whether to accept a job offer. Participation rates were highest for health benefits (76%), retirement benefits (76%), and paid time off (75%). Conversely, commuter benefits were deemed least important, with 52% of those having access to them stating they "rarely" or "never" use them.

This comprehensive survey by PeopleKeep not only highlights the current state of employee benefits but also points towards a future where employers are more attuned to the needs and preferences of their workforce. By adopting innovative solutions like HRAs and focusing on personalized benefit offerings, companies can better meet the diverse needs of their employees while managing costs effectively.

About PeopleKeep: PeopleKeep specializes in empowering employers to enhance their compensation packages with desirable health benefits. Through its user-friendly HRA administration software, PeopleKeep assists thousands of organizations in caring for their teams efficiently and effectively.