Infographic: U.S. employers look to enhance benefits to attract and retain talent

U.S. employers look to enhance benefits to attract and retain talent

Highlights from the 2023 Benefits Trends Survey

Competition for talent and rising costs are key issues influencing benefits strategy

• Competition for talent: 80%
• Rising costs: 67%
• Focus on inclusion and diversity: 41%
• Rising mental health issues: 39%

Concerns around rising healthcare costs keep growing, making it the most important issue influencing benefit strategies

Key focus areas for the benefits strategy

• Plan cost: 75%
• Meet needs for all employees: 49%
• Wellbeing: 42%
• Benchmarking and market trends: 26%

Health benefits are the primary focus of the benefits portfolio

What are employer priorities to support their workforce?

• Health benefits: 76%
• Mental health support: 56%
• Inclusion and diversity: 36%
• Retirement plan/Long-term finances: 26%
• Career, training and development: 23%
• Flexible work arrangements/Support employee benefit decisions (tie): 17%

Employers look to improve their market position across wellbeing

Percentage of employers looking to improve their benefits positions

• Financial wellbeing/Short-term finances: 42%
• Mental health support: 37%
• Inclusion and diversity: 34%
• Retirement plan/Long-term finances: 29%

Nearly 7 in 10 employers are reviewing vendor contracts

Percentage of employers who have taken action in benefits financing

• Improve terms in vendor contracts: 66%
• Increase employee share of cost: 43%
• Bundle different services into one package from a single vendor: 31%

Next steps for employers

Optimize. Strike the right balance between managing costs and enhancing your portfolio, especially across wellbeing areas. Use different listening activities including pulse surveys, town halls and focus groups to understand employee needs.

Differentiate. Use a diversity, equity and inclusion (DEI) lens to shape inclusive benefits that resonate with your diverse employees. Employers can address different needs – whether they are based on ethnicity, gender, race or other factors – by ensuring employees have a choice.

Deliver. Determine how to improve the employee experience when delivering benefits, including through technology such as digital platforms.

Evaluate and refine. Measure and analyze program performance to refine existing programs as needed and ensure they’re delivering the most value.

About the survey: A total of 595 U.S. organizations participated in the 2023 Benefits Trends Survey, which was conducted between March and April of 2023. Respondents employ 8.9 million workers.