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The Top Employee Benefits Trends to Watch in 2023


Employee Management

The Top Employee Benefits Trends to Watch in 2023

Companies should prioritize creating a strong customer experience by focusing on providing high-quality customer service, building a customer-centric culture, and leveraging technology to streamline customer interactions. By doing so, companies can improve customer satisfaction, loyalty, and ultimately drive revenue growth.

March 22, 2023
min read
March 22, 2023
8 min read
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Employee benefits have received a lot of focus over the past years. The post-pandemic workforce values salaries and other benefits that support their work and lives outside the office. It could be mental health resources, educational support, healthcare costs, childcare services, etc.

Employers that offer the right benefits in 2023 can make a huge difference in retaining top talent. It also gives them a competitive edge when searching the labour market. 

So what are the top 2023 employee benefits trends? And what type of benefits packages should employers offer their current staff? The information below provides insight into the best benefits of 2023 so employers can design employee satisfaction strategies for the new year. 

The Top Benefits Trends In 2023?

The following are key trends in employee benefits for 2023:

1. Personalization

Employees want the opportunity to choose how employers support their well-being. There are significant differences among employees. So they want the power to decide the benefits that best suit their family, age, hobby, and personality differences. 

2. Adaptability to Changes 

Employers recognize the importance of offering benefits that serve employees at different stages of their lives. So, employers should develop benefits that support employees whether they are single, married, have kids, keep pets, take care of ageing family members, etc. Benefits packages in 2023 should also support specific life circumstances. 

3. Benefits Management Tools

Employers are turning to management tools to streamline the process. Employers rely on management tools for a more accessible and less time-consuming way to administer benefits to various employees. 

What Benefits Do Employees Value Most In 2023?

Different employees value various benefits from employers. Take remote workers, for example. Their values are different from office workers. Below are the benefits employees value most in 2023.

1. Healthcare Covered By The Employer

Paying for healthcare is often a concern for employees. And they value healthcare now more than ever, following the events of the pandemic. Paid healthcare is also a concern for low-wage employees and those with chronic conditions.

Therefore employers who can offer coverage on healthcare or at least an affordable but inclusive option are more likely to win employees in 2023. 

2. Pension And Retirement Plans

More employees agree that planning for the future is vital. Therefore, 2023 will see many employees looking for companies that produce retirement and pension plans.

Financial wellness has always been a concern among workers. But it has only sometimes been possible for some. So employees are not just looking for a position that makes them earn more. They are thinking about long-term wealth and will favour companies that can help them achieve it. 

3. Life Insurance

More employees want life insurance as a benefit when they work for a company. The employer pays premiums – usually a tax-deductible business expense. The policy pays a tax-free lump sum for any employee death.

This benefit is significant among employees who are breadwinners in their families. It gives them a chance to still provide should anything happen to them. 

4. Mental Health Assistance

Unaddressed mental health issues can cause high turnover rates, low productivity, and even work absences. So employees want an environment where mental health assistance is a top priority.

More employers are investing in providing these services with in-office mental wellness programs and professionals. In addition, some are sensitizing managers and those in authority to recognize symptoms of mental health strain among subordinates. 

5. Mandatory Paid Time Off

Time off is good, but mandatory time off with pay is what employees are looking for in 2023. Employees value this benefit because it allows them to relax instead of worrying about how they will recover for the days they will not be paid. 

Benefits That Remote Employees Value

1. Internet Assistance

Remote teams value internet assistance by paying for internet packages or providing internet at no charge. It is because remote employees rely on the internet for communication and work. It makes sense that the employees would count this as a top perk.

2. Telehealth Services 

During the pandemic, people got used to remote doctors' appointments and getting prescriptions without leaving the house. Remote employees still value telehealth services on top of employer-paid medical health insurance. Employers must find ways to integrate virtual medical healthcare for remote employees.  

Benefits that In-Office Workers Value

1. Flexible Work Hours

In-office employees desire quality-of-life perks that allow them to spend time with family, relax, and pursue passion projects. Flexible working hours are the first benefit in-office employees value.

It is a change from time off where employers can provide shorter working hours per day or delay clock-in times for improved work-life balance. Hybrid work is also an option. 

2. Four-Day Work Week

The four-day workweek has been a popular subject in workplaces, especially since some countries have made it mandatory. In-office employees see this as a benefit that could help them improve their quality of life. 

What Benefits Are Falling Out Of Favor In 2023?

Employers should also note that some widespread benefits in previous years are less enticing to the current workforce. Some of them include the following:

●     Gym Memberships. Gym memberships may have been a perk in the past years, but employees do not seem as interested in them.  

●     Employee Discounts. Employee discounts were once a coveted perk but with changing values comes its fall out of favour. Perks like mental health support are quickly replacing employee needs.  

●     Free Drinks And Snacks. Free snacks are popular, but free drinks are a perk that employees rapidly ignore. 

●     Team Bonding Activities. Employers have overestimated the importance of team-building activities as a perk for employees. 

●     Company Retreats. Similarly, company retreats have found a replacement among employees. They want paid time off for vacations or spending time with family members. 

What Benefits Should Employers Offer In 2023?

Employers should not go over personalized employee assistance programs. Employees have different needs at different stages in life. For example, general healthcare may not resonate with a female workforce as they may prefer feminine health assistance. 

So even as employers switch to valued benefits in 2023, they must remember to make them adaptable to change and personalized. It goes a long way in improving employee experiences, retention rates, and attracting talent. 

In addition, employers can use management tools to help provide these benefits to the various employees.

Workpay offers convenient and effective perks and benefits management services. Our services are dedicated to improving the employee experience and helping your business thrive. Reach out today to learn more.   

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Workpay is a HR and Payroll software company that offers time & attendance, payroll, human resource, leave, expenses and remote teams solutions to businesses across Africa.

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