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Trends: The evolving workplace

Tomorrow’s workforce is looking for more than a benefits plan. Employees are placing a higher premium on finding their purpose at work and challenging their employers to empathize with their disengagement and burnout. Employers can work to address these struggles with well-being benefits while also tackling the rising health benefits costs.

What can you expect in the coming year?

While predicting and responding to employee benefits trends and employee expectations can be difficult, Marsh McLennan Agency (MMA) is here to help.

Download the 2023 Benefits Trends Report and learn how MMA can help.

Frequently Asked Questions

With every new generation entering the workforce, the expectations toward employers evolve. That includes the employee benefits that can position you as an attractive employer brand and support you in boosting employee retention.

There’s an entire array of recent employee benefits trends that pertain to employees’ overall well-being and an appreciative corporate culture. This is primarily due to employers recognizing that offering an attractive benefits package is now a core component of their overall business strategy if they want to remain competitive.

Besides mental health benefits, current packages increasingly focus on financial wellness and voluntary benefit offerings.

On-site perks and amenities, such as game rooms or nap pods, are falling out of favor due to the stronger focus on remote work and meaningful contributions to employee well-being. Equally, some employee benefits are slowly becoming redundant because of the technical evolution supporting them.

Thanks to the close communication supported by modern-day HR software, traditional performance reviews are gradually being replaced by more regular communication protocols.

By the same token, traditional pension plans have become less common because they limit employees’ withdrawal and investment options.

The pandemic raised awareness of the advantages and disadvantages of remote work. It called attention to the employee mental health issues associated with being isolated most of the workweek.

At the same time, many employees have realized the benefits of a flexible work schedule. Therefore, hybrid work and the increased flexibility that comes with it will be part of the benefits packages helping employers retain talent and increase employee satisfaction.

Changing workforce demographics have consistently challenged human resources to adapt to evolving worker preferences. Enhanced wellness programs and flexible remote work arrangements will continue to be one building block of successful employee benefits strategy. Modern technology can unlock the personalized offerings employees have come to expect.

Data analytics and contemporary solutions help to enable every HR manager to offer a tailored benefits package that addresses each employee’s well-being. 

That means wellness programs will continue to expand beyond basic physical health. Educational offerings and services around stress management, financial wellness, and work-life balance are becoming increasingly prevalent.

Your employees’ preferred benefits options may not only depend on their generation but also on their location and industry. It’s important not to use age as a single metric to guide your benefits strategy.

Nevertheless, we can identify some trends. Millennials may prioritize flexible work arrangements, career development options, and modern HR solutions more than other generations.

While those are equally important to Generation Z, this younger group has also demonstrated an increased interest in benefits supporting diversity, equity, and inclusion efforts. This goes hand in hand with an employer brand prioritizing social responsibility through volunteer programs.

Meanwhile, baby boomers may emphasize retirement benefits and have stronger attitudes toward benefits choices.

However, it’s important to remember that these are just general societal trends and won’t apply to each team equally. When in doubt, ask your Marsh McLennan Agency consultant about gathering the necessary data to make an informed decision.