From flexible spending accounts to debt management services, here are some trending employee benefits counties might want to consider in 2024.
Like much of the public sector, local governments continue to struggle to hire and retain post-pandemic. One way public sector employees are seeing progress in staffing is by offering unique and competitive benefits for the modern workforce. Post-COVID-19 — and with the rise of younger generations in the workplace — employees are increasingly seeking opportunities that offer greater flexibility, nontraditional resources and supports, and identity-based benefits. Here are some of the trending offerings to consider in 2024.
Family and “lifestyle” benefits
Parental Leave programs continue to be popular. Maryland passed the Time to Care Act (TCA) in 2023 to require employers with at least 15 employees in the state to offer State-mandated paid family leave benefits beginning in 2025, including up to 24 paid weeks of leave for introducing a new child into a family (via birth, adoption, foster care, or guardianship). All 24 of Maryland’s counties as employers fall under the TCA requirements to offer the future paid leave benefit. Some counties, however, are offering paid leave benefits ahead of the 2025 requirement.
Some employers are also focusing on reproductive health benefits as well as “Lifestyle Spending Accounts” (LSAs) to give employees more choices and flexibility on how to use funds for their health and wellness. LSAs are defined as:
Employer-sponsored benefit that allows employees to set aside money for discretionary spending. LSAs are customizable and can be used for a variety of expenses such as child-care, wellness programs, transportation, home office equipment, and much more. The funds are set up by the employer and the parameters for how the money can be spent are determined by the employer as well. LSAs have been proven to help boost employee morale, loyalty, and productivity as well as give employees the freedom of choice to select benefits that best suits their individualized lifestyles.
The different offerings under an LSA can be tailored to promote work-life balance by including options that boost productivity as well as promote downtime and relaxation.
Financial health and wellbeing
Increasingly popular are employee benefits that support staff’s financial health and wellbeing, known as “Financial Wellbeing Programs.” These benefits are in addition to traditional financial perks like 401(k)s and pensions. More and more, employees seek debt management and emergency savings options from their employers. According to Boost, a government contractor services company, many of these financial benefits “will become standard with 401k offerings in the coming years, thanks to the Secure Act 2.0.” Offering Financial Wellbeing Programs is thought to increase hiring and retention, reduce employee staff and increase productivity, support on-time retirement, and help employees maximize their benefits and potential. Other examples of Financial Wellbeing Programs can include:
- Access to financial coaches
- Financial education programs
- Retirement planning assistance
- Budgeting tools and resources
- Debt management support
- Healthcare cost planning
- Salary transparency
- Employee discount programs
Workplace flexibility
Flexible work arrangements — including remote work and flexible/nontraditional work hours — continue to be popular. AssuredPartners Vice President Mike O’Connor says, “Remote work and flexible working hours are becoming standard.”
Other unique offerings
Additional nontraditional benefits some employers predict to trend in 2024 include:
- Preventive mental health services and coaching
- Diversity, Equity, and Inclusion benefits alignment
- Genetics and nutritional-based incentives
