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5 min read

Employee Benefit Trends in 2023

As we round the corner on the first quarter of 2023, many companies are still dealing with the fallout of the 'Great Resignation'. Businesses in almost every sector throughout the United States struggle to find and recruit talented applicants as the labor market continues to become more competitive. If, as a business owner, you find yourself staring at an empty inbox or a dried-up Indeed page, there may be a culprit: a lackluster employee benefits package. 

Studies indicate that more than 60% of potential applicants factor in company benefits while making employment decisions. That number has only grown with recent employee benefits trends. Whether this change is a result of the Great Resignation, the COVID-19 pandemic, skyrocketing inflation, or some other cause, one thing is clear: to stay competitive and attract top talent, businesses need to level up their game and bring their best benefits offerings to the forefront of their hiring strategies. 


What are Employee Benefits? 

Employee benefits encompass everything businesses offer to employees in addition to their salary. They can range from the obvious and familiar (like healthcare packages) to the legally mandated (like a minimum period of maternal/paternal leave) and “bonuses” (like flexible workplaces, company-issued equipment, and tuition reimbursement). In recent years, changing norms and employee needs have redefined what “standard” benefits are, and if a company is looking to recruit the best talent, they'd be well advised to take note of these changing expectations! 

Implementing Sought After Benefits to Attract Applicants

Outside of a competitive salary, offering the right benefits that job seekers are looking for is one of the most effective methods of attracting the best talent to your hiring pool. In a shifting labor market increasingly valuing a flexible work environment, healthcare affordability, and work-life balance, employers looking to stand out to job seekers are putting in more effort to compile benefits programs with highly desirable perks.   

Hiring Qualified Workers is Harder than Ever in 2023

It’s no industry secret that businesses across the country, both large and small, are struggling to meet their hiring goals in 2023. The Great Resignation that has been grabbing headlines since 2021 and is still in full swing. According to data from a recent poll, up to 40% of Americans were considering leaving their job within the next three to six months. Whether you’re trying to convince your current staff to stay on board or you want to be competitive in a rapidly changing workplace culture, increasing your benefits offerings could be the key to success.  


Top Employee Benefit Trends for 2023

Though we’re nearly through the end of the first quarter of the new year, there has been enough time to spot, notate, and predict changes in employee benefits trends from the past year. In 2023, employees have a renewed focus on employee benefits packages that offer comprehensive and affordable healthcare, hybrid roles and work environments, and work-life balance. To stay competitive and attract the top talent in your industry, look at your current benefits offerings and see how they compare to what employees are looking for.   

Improved and Affordable Healthcare Packages

With rising healthcare costs throughout the United States and a population recovering from a worldwide pandemic, healthcare affordability and wellness benefits are some of the primary draws for employees in 2023. More and more workers are pursuing offers from businesses that offer comprehensive health insurance benefits that include, in addition to primary health care, reproductive, and mental health coverage. There is also a rising interest in benefits that focus on overall well-being, such as gym memberships, health clubs, access to dietitians, and more. 

Prioritizing Employee Well-Being

With extended health care coverage, people are driven by benefits packages that allow them to receive preventative care for non-emergency medical issues and assistance with addiction, recovery, fitness, and dietary struggles. Modern plan designs include complimentary gym memberships, sessions with counselors for various issues, lifestyle education programs, and more. By prioritizing their employees' overall well-being, businesses can hire and retain top talent and find themselves with a much more productive, confident, and emotionally satisfied workforce.    

Remote/Hybrid Work Environments

Remote work was a rare perk in the years leading up to the COVID-19 pandemic, but after during the pandemic, much of the workforce was forced into working from home. Since then, employees that work from home consistently report feeling (and often are) more productive, have a better work-life balance, and save both time and money on daily commutes, resulting in greater job satisfaction overall. There are similar findings for hybrid roles.

Between July 2021 and July 2022, searches for “remote jobs” jumped over 300% on sites like Indeed and ZipRecruiter, and those numbers have not dropped off in 2023.  

Employees are set on finding remote work that helps them lead more efficient and fulfilled lives, and there is plenty of research to prove it. If businesses haven’t begun to identify possible roles or methods for making remote work viable, they may be missing out on a huge swath of potential staff that just isn’t interested in sitting in a cubicle from Monday to Friday.   

Personalized Benefits and Workplace Flexibility

A personalized benefits system may be the perfect fit for employees seeking benefits packages that cater to their needs. Only some people need an all-inclusive healthcare package, and allowing employees to pick and choose what benefits are right for them could be a powerful hiring motivator. For example, some businesses let employees choose specialized forms of healthcare such as cancer coverage or open the floor to opt-in ancillary benefits like pet insurance, financial counseling, and ID theft protection.  

Workplace flexibility began to dominate the conversation in the middle of 2022. This can take many forms, from flexible start and end times during the workday to a 4-day work week or hybrid work model. Studies have shown that these flexible work environments help employees become far more productive, save businesses wasted costs from idle hours or wasted time, and increase employee satisfaction and happiness with their position. 

Family-Friendly Benefits

While certain family-friendly benefits like paid parental leave are required by law, many businesses are seeing positive results from implementing additional benefits packages focusing on an employee’s family. These benefits are meant to help employees dealing with rising daycare costs, juggling multiple commitments outside of work, and struggling with exhaustion and burnout as a result. By addressing these needs, businesses have found their workforce happier, healthier, more motivated, and far more effective.   


Paternal/Maternal Leave, Medical Leave, etc.

While some amount of paid parental leave is required by law, employers have seen advantages in offering increased amounts of leave time and supplementary care services after the fact, like reduced hours, assistance with daycare costs, and more. Medical leave and sick days for those struggling with chronic illnesses have also been a significant draw in recent years. 

Emphasizing Work-Life Balance

In 2023, work-life balance is one of the critical aspects of an employee’s relationship with their employer. This goes hand-in-hand with remote work in that employees are driven to find ways to make more effective use of their time and maintain productivity without spending unnecessary additional time at work. By offering benefits programs that emphasize commitment to a quality work-life balance, businesses can effectively attract talent aligned with the leading interests of today’s labor market.  

Tuition Reimbursement

Among the types of specialized benefits many businesses offer to stand out, employee assistance programs are some of the most alluring for prospective employees. Tuition reimbursement is a prime example of these programs and is becoming increasingly common year after year. By offering to cover a certain share of an employee’s tuition costs, businesses can attract qualified candidates and support current employees in furthering their education, resulting in a more knowledgeable and effective workforce overall.   

Embracing Pay Transparency

Pay transparency was one of the last hot-button issues to crop up in 2022, and the conversation has continued well into the new year. Workers have a long history of valuing pay transparency, especially from large employers, but 2022 represented a shift in momentum as New York became the latest state to enact legislation on the subject. As a business, embracing pay transparency and being upfront about wages shows potential employees their time is valued and their experience and skills are being taken seriously. 

Horizon is a Trusted Partner for Payroll and HR

The world of human resources and payroll is constantly changing. Stay on top of the latest trends with expert help from the top-rated team at Horizon Payroll. We have decades of experience providing companies with industry-leading HR and payroll services, including employee benefits management. Take care of your most valuable assets with Horizon! 

Trusted Benefits Management for Small-to-Medium-Sized Businesses 

As HR professionals, we offer thorough and comprehensive benefits management solutions for small and medium-sized businesses. We know how challenging it can be to manage, predict, and stay on top of industry trends and changing laws and regulations, which is why our leading services are here to help. Let us handle the payroll paperwork so you can get back to doing what you do best.   

Contact Us Today for a Free Consultation 

For more information about the latest in employee benefits trends or the most effective ways to attract top talent to your business, contact the pros at Horizon for a free consultation today! 

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