Best Employee Benefits in 2022
Businesses need to offer the best company benefits if they plan on attracting and retaining the most competitive employees. While traditional job benefits like health insurance have become staples, the industry is discovering newer benefits that help employees live better lives. Here’s a look at the best employee benefits that businesses can offer in 2022.
Particularly after the COVID-19 pandemic, health insurance remains a top job benefit for employees. Employees want employer-sponsored health insurance that will keep them healthy through routine checkups, preventative screenings, and medical emergencies. Dental and vision coverage create a desirable bundle of the best company benefits a business can offer.
Other health-related benefits like Health Savings Accounts (HSA) and Flexible Spending Accounts (FSA) are also considered some of the best employee benefits due to their tax savings. If employees have a high deductible health plan, HSAs allow them to set aside pre-tax dollars to pay for current health expenses, save for future qualified medical costs, and make financial investments. FSAs let all employees pay for out-of-pocket health care costs without paying taxes on the income used to fund the account.
On-Demand Pay Benefits
According to the Federal Reserve, 37% of American workers would have difficulty covering an unexpected $400 expense. In light of this finding, the rise of on-demand pay or “earned wage access” (EWA) has proven to be a valuable benefit.
With on-demand pay, employees get access to the wages they have already earned without having to wait for the traditional two-week pay period. Implementing EWA is a simple process for both employer and employee, and the program helps reduce the stress employees can experience due to financial problems. In fact, 78% of employees who pay bills on time with on-demand pay avoid costly alternatives such as payday loans or checking account overdrafts.
On-demand pay is one of the best employee benefits that is quickly rising in demand. As evidence of the increasing demand, 79% of employees surveyed said they would be willing to switch to an employer that offered earned wage access.
Financial Wellness Benefits
On-demand pay is not the only financial benefit popular with employees in 2021, as a growing number of employees also expect their employer to offer overall financial wellness assistance.
Personal finance is one of the top employee stresses, according to a PwC Annual Employee Financial Wellness survey. Since that stress can carry over to the workplace, employers can help reduce its impact by offering financial wellness programs that help employees improve their financial situations through workshops, training, or other educational programs.
Wellness programs can cover a range of topics, including managing credit, reducing debt, tracking expenses, saving for retirement, and more.
Mental Health Benefits
With approximately 29% of workers interviewed by Gartner stating they were depressed and nearly half indicating they had used company mental health services, it is clear that mental health has become an increasingly important benefit for employees.
As employees deal with stress, anxiety, and financial difficulties, Employee Assistance Programs (EAP) programs that address mental health are widely considered as essential as paid time off or family leave.
As the job market becomes more competitive, employees will continue searching for employers that provide well-rounded benefits packages that improve their overall quality of life. The companies that offer the best job benefits will attract the best talent.