15 employee benefits on the decline
Thanks to a tightened job market, a number of employers are ramping up benefits in an effort to recruit and retain talent. A number of big companies, including Discover,Walmart, Taco Bell and Kroger, have announced new and enhanced benefits for employees just this year. In fact, according to research from the Society for Human Resource Management, between 2017 and 2018, the prevalence of more than 60 benefits assessed increased compared with just 20 between 2016 and 2017.
However, not every employee benefit out there has been there on the rise. A number of offerings have declined in prevalence over the last few years — especially for employers looking to better manage benefit costs. Here are 15 benefits that are not as hot as they once were, according to SHRM’s annual survey.
Though wellness programs are still very popular among employers, preventative programs specifically targeting employees with chronic health conditions has seen a significant drop in the last five years. The coverage fell by eight percentage points since 2017 (from 33% in 2017 to 25% in 2018) and a whopping 17 percentage points since 2014 (42%).
Flexible spending accounts
FSAs are not as prevalent as they once were: 63% of employers currently offer the spending accounts, down from 69% in 2015. While they are still more popular than health savings accounts, that may change in the years to come: HSAs are on an upward trend. The number of employers offering HSAs — which offer triple tax benefits for employees — rose just one percentage point from 2017 to 2018 (from 55% to 56%), but has increased by 11% in the last five years.
Domestic partner benefits
Domestic partner benefits fell by 10 percentage points for opposite sex partners and by nine percentage points for same-sex partners (both to 15%) since 2017.
Childcare and eldercare referral services
Both childcare (17% in 2017 to 9% in 2018) and eldercare (13% in 2017 to 10% in 2018) referral services fell between 2017 and 2018.
Onsite cafeterias that are fully or partially subsidized by the company are on the decline. Twelve percent of employers currently offer the perk, down from 16% in 2017.
Defined contribution catch-up contributions
The prevalence of defined contribution catch-up contributions — which permit participants who are age 50 or older to make additional elective deferral contributions at the end of the calendar year — has continued to fall over the past five years with 64% of organizations offering this benefit in 2018, down from 76% five years ago.
Short-term disability insurance
Short-term disability insurance has fallen 10% in the last three years: In 2015, 74% of employers offered the coverage; 64% of employers currently offer it, according to SHRM.
Incentive bonus plans
Incentive bonus plans fell by nine percentage points for executives (to 42%) and seven percentage points for nonexecutives (to 37%), SHRM reports.
Sign on bonuses for executives
Sign-on bonuses for executives fell by six percentage points in the last year, from 35% to 29%. SHRM notes of the change: “As competition for talent rises as unemployment falls, organizations may be identifying which types of compensation benefits are the most helpful in recruitment and retention, and subsequently making changes to spend their budgets as wisely as possible.”
Bariatric coverage for weight loss
Bariatric coverage for weight loss — including stomach stapling and gastric bypass surgery — has fallen in the past five years. While 38% of employers offered such coverage in 2014, 33% now offer it, according to SHRM.
Onsite health screening programs
Employers who offer onsite health screening programs — for example, screening for employees’ glucose and cholesterol numbers — have declined 17% since 2015. Thirty percent of employers offer these programs currently, according to the latest statistics.
Benefits in employee discounts and charity fell in several areas since 2017, including discount ticket services (from 31% to 27%), donations for employee participation in charitable events (from 28% to 24%), company-purchased tickets (from 23% to 20%) and employer-sponsored personal shopping discounts (18% to 12%). SHRM noted the drop “may be due to less value added in terms of effects on recruitment and retention compared with other benefits.”
Elective procedures coverage
The percentage of employers who cover elective procedures for their employees — defined as any nonemergency surgical procedure other than laser-based vision correction — has dropped over the last five years. In 2014, 15% of employers offered such coverage; 11% now do.
Housing and relocation benefits
Overall, housing and relocation benefits are among the least common compared with other benefits categories. Since 2014, prevalence rates for several housing and relocation benefits fell, “perhaps indicating that organizations see little if any value added,” SHRM notes. Although the decreases are between just three and five percentage points, given the low prevalence rates of these benefits to begin with, the decreases are quite substantial (between 25% and 60%). For example, 16% of employers say they offer temporary relocation benefits, down from 24% who offered it in 2016.
The prevalence of corporate health fairs have dropped 10 percentage points in the last three years. Now, 30% of employers surveyed by SHRM say they offer health fairs, down from 40% who did in 2015.
15 employee benefits on the rise
Employer-sponsored health insurance and retirement plans are always a vital part of the employee benefits conversation. But a number of other benefits — think wellness and perks that promote work-life balance — are becoming table stakes as employers look to attract and retain talent in a tightened labor market. Here are 15 of the employee benefits that are on the rise, according to the Society for Human Resource Management’s recently released annual benefits survey.
Health savings accounts
Health savings accounts continue to rise in popularity. The number of employers offering HSAs — which offer triple tax benefits for employees — rose just one percentage point from 2017 to 2018 (from 55% to 56%), but has increased by 11% in the last five years.
Paid parental leave
The availability of paid parental leave increased significantly between 2016 and 2018 for every type of parental leave, according to SHRM. Paid maternity leave increased from 26% in 2016 to 35% in 2018, and paid paternity increased from 21% to 29%. Meanwhile, adoption (20% to 28%), foster child (13% to 21%) and surrogacy (6% to 12%) leave also increased in the last two years.
A number of large employers have added or enhanced paid parental leave programs in the last year. Dollar General, TD Bank and Unum are among the companies that added parental leave benefits for employees, while IBM, TIAA and Walmart are among those that expanded their programs.
Company-organized fitness competitions/challenges
The last year has seen a substantial uptick in employers targeting employee wellness through company-organized fitness competitions and challenges. The percentage of employers offering the perk increased from 28% in 2017 to 38% in 2018.
Standing desks are one of the fastest-growing employee benefits: The percentage of employers offering standing desks to workers increased from 20% in 2014 to 53% in 2018. In the last year alone, the benefit increased 8 percentage points.
Research indicates long hours of sitting are linked to obesity, diabetes, heart disease and cancer, so employers are looking for benefits to help combat the problem.
Critical illness insurance
One in four employers now offer critical illness insurance to their employees, according to SHRM. That’s an 8% increase from 2017 and a 10% increase from 2014. As healthcare costs continue to mount for both employers and employees, voluntary benefits offer workers some additional protections for financial emergencies at a low cost, benefit experts say.
Flexible working benefits, such as telecommuting, flextime and compressed workweeks, encourage work-life balance and can result in higher productivity and more engaged employees, SHRM reports. That’s likely the reason that more than two-thirds (70%) of organizations offer some type of telecommuting, either on a full-time, part-time or ad-hoc basis, up from 62% last year and 59% in 2014.
CPR/first aid training
A growing number of employers are getting serious about safety: The prevalence of CPR/first aid training increased 7 percentage points (47% to 54%) in the past year.
Acupressure/acupuncture medical coverage
Nearly half of employers (47%) now provide acupressure/acupuncture medical coverage, according to SHRM. The benefit experienced significant growth over just the last year: 38% of employers offered the coverage in 2017.
Onsite stress management programs
A growing number of employees report they are stressed out — and the effects are showing at work. So employers are increasingly taking action. The number of employers offering workplace stress management programs is on the rise, with 12% of companies offering these programs. That’s up from 7% last year, and just 3% in 2014.
More employers are offering benefits that help new mothers adjust to getting back to work after having a baby. Nearly half (49%) of organizations now offer onsite lactation rooms, according to SHRM, up seven percentage points since 2017 and almost doubling since 2014 (28%).
Casual dress benefits
Dressing down is going up: More employers are embracing casual dress benefits, according to SHRM statistics. The most common practice is to allow employees to “dress down” one day per week, up six percentage points since 2014 (to 62%) and three percentage points since 2017. Half of employers say they allow casual dress every day, up six percentage points since 2017 and 18 percentage points since 2014. And about one-third (34%) of organizations offer the perk on a seasonal basis, up seven percentage points since 2017 and 15 percentage points since 2014.
Service anniversary awards
The percentage of employers offering service anniversary awards, the most common type of compensation benefit, rose by nine percentage points — to 63% — since 2017, SHRM reports.
Nearly half (48%) of employers told SHRM they offer employees spot bonuses/awards. That’s a 3% increase from 2017 and a 7% increase since 2014. A number of employers, including Comerica Bank, Hostess, Lowe’s and McCormick, have announced bonuses for employees in the last six months as a result of financial savings from the GOP tax law.
Company-paid group life insurance is offered by 85% of organizations, and 80% of organizations offer supplemental life insurance for employees, a four-percentage-point increase from 2017, SHRM reports. A substantial increase was seen for life insurance for dependents with more than two-thirds of organizations (70%) offering this benefit in 2018, an increase of 13 percentage points since 2017 and 16 percentage points since 2014.
Paid time off to volunteer
An increasing number of employees are interested in volunteer opportunities — and employers are listening. SHRM reports that 24% of employers now offer employees paid time off to volunteer, up from 22% in 2017 and 16% in 2014.