The best employee benefits for keeping your workforce happy and motivated in 2024

Keeping your employees happy and motivated is not just about offering a competitive salary. 

While competitive compensation is important, top talent often prioritizes other factors like meaningful work, strong company culture, employee benefits, and opportunities for growth.

So what's the alternative?

To attract and retain the best employees, you need competitive benefits packages to tip the scales in your favor. Otherwise, you risk losing top talent to your competitors.

So, what makes for a flexible, employee-first benefits package? Forma gives employees autonomy over how they use their benefits. The key is to offer meaningful choices and a variety of perks to choose from.

Let's explore the best employee benefits you can offer to make your organization a magnet for top industry talent.

Key takeaways

• The best employee benefits cater to the diverse needs and preferences of individuals, allowing for customization to enhance overall job satisfaction.
• Flexible benefits contribute to creating a positive workplace culture where employees feel valued, supported, and motivated to contribute to the organization's success.
• Offering flexible benefits gives employers a competitive edge in attracting and retaining top talent, showcasing a commitment to adapting to the evolving needs of the workforce.
• Flexible benefits are a strategic investment in the well-being, satisfaction, and engagement of your workforce.

6 benefits to offer as a minimum

There are some fundamental benefits that should be a core part of your organization’s benefit program in 2024. Let's get into them. 

Health insurance

Health insurance covers medical expenses like doctor visits, hospital stays, prescriptions, and preventive care. This ensures access to essential healthcare promoting well-being and financial security during illness.

Health insurance is integral to your employee compensation package, offering peace of mind by minimizing out-of-pocket costs and facilitating timely medical care.

Providing health insurance is also vital for attracting and retaining top talent. A robust health insurance offering is a strategic investment, contributing to a healthier, engaged workforce and ultimately enhancing organizational success.

As an employer, you can add a great variety of pre-tax healthcare accounts to your benefits package, for example, Health Savings Accounts (HSAs).

Life insurance

Life insurance provides financial protection to employees' families in the event of their passing. It typically covers funeral expenses, and outstanding debts, and supports dependents, offering peace of mind during challenging times.

Life insurance serves as a safety net for employees, ensuring that loved ones are financially secure in the face of unexpected circumstances.

As an employer, life insurance showcases a genuine commitment to the overall well-being of employees. More than just a job perk, it is integral for creating a satisfactory employee experience.

Paid time off

Paid time off (PTO) allows employees to take time off to recharge without losing pay. It includes things like sick leave, vacation time, personal days, and other forms of paid absence. In most companies, PTO is mandatory, but the number of PTO days varies greatly.

PTO is essential for maintaining a healthy life/work balance. It prevents employees from burning out and gives them something to look forward to when things get tough at work.

Offering a generous PTO policy is a smart move for an employer. It helps attract and keep good people by showing that you value their time and well-being. In a competitive job market, a fair PTO policy makes the company a better place to work, plain and simple.

Retirement contributions

Retirement plans, such as 401(k)s, play a pivotal role in securing employees’ long-term financial prospects. Matching a percentage of your employees’ retirement contributions is a great way to helps your workforce save enough to retire comfortably.

Beyond being just a mechanism of compensation, a well-structured retirement package empowers employees to navigate their financial journey, reducing stress and contributing to a satisfying career path.

Long-term financial security retirement plans are beneficial for both employers and employees. Your employee retention rate and satisfaction will be higher if employees feel like you’re caring for them and their loved ones.

Family leave

Family leave is an essential employee benefit, providing individuals the flexibility and support needed during significant life events. Whether welcoming a new family member or navigating a family crisis, family leave ensures employees can prioritize personal well-being without sacrificing job security.

When employees have the flexibility to address family needs without worrying about work consequences, they are more likely to return to work focused and with a higher level of productivity. Family leave also contributes to gender equality by providing both men and women the opportunity to take time off for caregiving responsibilities, helping break down traditional gender roles.

Lifestyle Spending Accounts (LSAs)

A Lifestyle Spending Account (LSA) is an employee benefit that allocates funds for personal well-being beyond traditional health benefits. LSAs offer flexibility, allowing employees to use the allocated funds for various lifestyle-enhancing expenses. These stipends may include fitness memberships, wellness programs, childcare, education, commuting costs, and more.

LSAs aim to support work-life balance and employee satisfaction by empowering individuals to invest in activities that contribute to their overall well-being. The funds often come with potential tax advantages, creating a holistic approach to employee benefits beyond conventional health care coverage.

Book a demo to explore an ultra-customizable LSA spending account.

6 employee benefits and perks you should also be offering

If you want to make your benefits plan more enticing, there are some additional benefits and perks you should also be offering.  

While some may classify these as nice-to-have but not mandatory, each of these six benefits could be the deciding factor when it comes to attracting and retaining top talent.

Student loan assistance

Student loan assistance helps employees manage the financial burden of student loans. This benefits program involves employers contributing funds directly to employees' student loan debt or providing resources and guidance on loan repayment strategies.

The assistance aims to alleviate the financial stress associated with educational loans. Employers may offer various forms of support, such as direct payments, matching contributions, or counseling services. Student loan assistance is increasingly recognized as an attractive employee benefit, addressing the challenges of student debt and fostering a supportive workplace environment.

Wellness programs

Wellness programs are employer initiatives designed to enhance the overall health and well-being of employees. These programs often include a variety of activities and resources promoting physical, mental, and emotional wellness. Common components may encompass fitness challenges, nutrition education, mental health support, stress management workshops, and preventive health screenings.

To encourage participation, employers may offer incentives, such as gym memberships, wellness workshops, or health insurance premium discounts. The primary goal is to create a healthier workplace culture, reduce healthcare costs, and boost employee morale and productivity. Wellness programs reflect a proactive approach to employee health.

Flexible scheduling and remote work

Flexible scheduling and remote work arrangements provide employees with the freedom to choose when and where they perform their job duties. Flexible scheduling allows individuals to adjust their work hours to better align with personal preferences or obligations, promoting work/life balance.

Remote work enables employees to fulfill their responsibilities from locations outside the traditional office, often from home. Both options enhance autonomy and can lead to increased productivity and job satisfaction.

Employers benefit from access to a broader talent pool, reduced commute-related stress, and the potential for cost savings associated with maintaining physical office spaces. Embracing flexible scheduling and remote work reflects a modern approach to work culture, emphasizing efficiency, trust, and adaptability.

In fact, many employers have set up disparate programs to solve these issues. And, with a Lifestyle Spending Account (LSA), you can provide all these benefits with one vendor. 

Read about how we helped TripAdvisor launch flexible benefits programs for 2000+ remote employees worldwide. 

Work/life balance

Employers that value employee work/life balance recognize the importance of harmonizing professional and personal life. Ways to promote work/life balance include flexible work hours, telecommuting options, or policies that encourage employees to disconnect during non-working hours.

By supporting work/life balance, employers enhance job satisfaction, reduce burnout, and contribute to a healthier and more engaged workforce. This benefit is particularly attractive to employees seeking a holistic approach to their lives, promoting loyalty, retention, and ultimately, a positive and productive work culture.

Lunch stipend or team lunch

Lunch stipends are financial allowances employers provide to cover the cost of employees’ daily meals. By offering this benefit, the employer acknowledges the importance of nourishment during the workday and aims to support employees in maintaining a healthy and convenient meal routine.

The stipend can be a fixed amount or provided through a prepaid card, giving employees flexibility in their meal choices. Lunch stipends not only contribute to employee well-being but also promote a positive workplace culture by showing consideration for the daily needs and preferences of the workforce.

Career development

Career development is a lifelong process of acquiring skills, experiences, and knowledge to achieve professional goals and personal fulfillment. It involves strategic planning, continuous learning, and adapting to evolving career landscapes.

Employers play a crucial role in supporting career development by providing training opportunities, mentorship programs, and pathways for advancement. Individuals engage in self-assessment and seek out opportunities for growth, aiming to align their skills and aspirations with evolving career demands.

The goal of career development is to foster a fulfilling and progressive professional journey, empowering employees to achieve long-term success and satisfaction in their chosen fields.

5 reasons why the best employee benefits are flexible benefits

Benefits are not a one-size-fits-all kind of deal. Flexibility in benefits is often the biggest perk you can give to your employees and here are five reasons why.

Individualized employee needs

Flexible benefits allow employees to customize their benefits package according to their unique needs. This personalization addresses diverse preferences and life situations, making the benefits more relevant and valuable to each individual.

In contrast, relying on point solutions, such as gym passes, club memberships, mobile phone reimbursements, body scans, etc., creates inefficiency due to underutilized benefits and HR admin fatigue. Flexible benefits sidestep this issue by allowing employees to choose only what they want, enabling employers to procure only what's needed.

Promoting employee wellbeing

Flexibility in benefits, such as flexible scheduling or remote work options, contributes to improved overall well-being. This helps employees manage personal and professional commitments, leading to reduced stress and increased loyalty to the organization.

Supporting employee well-being also makes for a healthier workforce, reducing healthcare costs associated with absenteeism, medical claims, and disability.

Attracting and retaining talent

In a competitive job market, flexible benefits serve as a powerful tool for attracting and retaining top talent. It showcases an employer's commitment to meeting the evolving needs and expectations of its workforce.

A reputation for offering flexible benefits contributes to positive employer branding. This not only attracts external talent but also enhances the organization's image within the industry and the broader community.

Forma makes it easy to attract talent to your organization by streamlining the creation of custom benefits packages with our flexible employee benefits software. We offer a variety of pre-tax spending accounts, including LSAs, HSAs, and FSAs.

Learn more on our Pre-tax Accounts page.

Adapting to changing lifestyles

As employee demographics and lifestyles evolve, flexible benefits allow organizations to adapt. Whether employees prioritize health and wellness, education, or financial stability, a flexible benefits approach accommodates these changing preferences.

The positive impact of flexibility on employee motivation and satisfaction can lead to increased productivity and reduced turnover costs, making it a cost-effective strategy in the long run.

Enhanced employee engagement

Employees who feel their needs are understood and met are likely to be engaged. Flexible benefits contribute to a positive workplace culture by empowering employees to make choices that align with their values, creating a sense of appreciation and commitment.

Engaged employees are also more likely to put effort into their work, leading to higher productivity and efficiency.

The best employee benefits package is an employee-first benefits package

To create the best employee benefits package for 2024, you must recognize that top talent seeks more than monetary rewards. You need a flexible, employee-first benefits package that prioritizes individual needs and preferences. 

Forma believes meaningful choices and various perks are key to creating an attractive workplace. 

<span class="text-style-link text-color-blue" fs-mirrorclick-element="trigger" role="button">Contact a Forma expert</span> today and we’ll help you create a custom benefits packages that your employees will love.