Employers appear to be increasingly focused on comprehensive well-being programs to meet workforce needs, and nearly 1 in 3 U.S. organizations report plans to expand their voluntary benefit offerings by 2027, according to a July 9 report from Gallagher.
For instance, interest is growing in quality-of-life benefits, such as discounts on services and products that cater to lifestyle and personal interests.
“We are at a pivotal moment as employers and organizational leaders — a moment where we can have a significant opportunity to reimagine the employee care experience,” John Tournet, U.S. CEO of Gallagher’s benefits and HR consulting division, said in a news release.
“To compete for talent, reinvesting benefit savings where it may matter most to employees can make a difference,” Tournet added. “Knowing that care encompasses all aspects of an employee’s well-being from physical to emotional and financial needs, ensuring leaders have the right data to make informed decisions, is more critical than ever.”
In a survey of more than 4,000 U.S. organizations, 67% agreed that voluntary offerings are an important component of a comprehensive financial well-being strategy. Identity theft protection and legal plans, for instance, can help employees better manage their risks, which can lead to lower stress and higher productivity.
Other quality-of-life products, such as pet insurance, accident insurance and employee perks programs, have increased in recent years and can improve employee satisfaction, the report found. About half of employers offer an employee perks discount program, up from 44% in 2023.
Among popular options, a third of employers offer pet insurance, up from 23% in 2023. In addition, 28% offer long-term care solutions, including home healthcare, adult day care and assisted living needs, which can help alleviate stress around potential future expenses.
However, some quality-of-life products may capitalize on optics but not quality, Gallagher noted. Employers can offer these options — including vehicle warranties, ride-sharing programs and various product discounts — but may need to remain aware of drawbacks or the appearance of endorsing these products, the report found.
Other unique benefits have emerged for talent attraction and retention, including lifestyle spending accounts, sabbatical expenses and points reward systems. Companies are turning to creative benefits strategies — such as meal vouchers, free bikes and taxi rides on holidays — to offer attractive and personalized total rewards packages to top talent.
