Employee Benefits to Adopt in 2024: Why Reinventing Benefit Strategies is Crucial to Keeping Up

In a rapidly changing world, where 72% of Americans report feeling stressed about money in the last month, companies are finding it necessary to reinvent their approach to employee benefits. Veetahl Eilat-Raichel, Co-Founder and CEO of Sorbet and an expert in financial wellness programs, shares insights on why updating benefit strategies is crucial for businesses aiming to keep pace in 2024.

Financial stress is a significant concern for many, affecting not just mental health but physical well-being, too. Eilat-Raichel points out, “Financial wellness programs provide clear paths to alleviate some of that anxiety.” Sorbet, for instance, enables employees to convert unused vacation days into financial assets, addressing the untapped opportunity in the over $3,000 worth of PTO that goes unused per employee annually. This innovative approach helps employees regain monetary control, turning what’s traditionally seen as a rest period into a financial planning tool.

With the trend towards remote work, companies face the challenge of keeping employees engaged and mitigating resentment when calling them back to the office. Eilat-Raichel suggests focusing on work-life balance, legitimizing time off, and empowering employees with choices, including in-office perks that make coming to work desirable. The need for inclusive PTO policies that cover mental health and caregiving needs is more crucial than ever, especially since unused PTO has doubled since the pandemic. Eilat-Raichel emphasizes, “Incorporating inclusive PTO policies will help employees feel more comfortable utilizing their PTO.”

However, Eilat-Raichel warns against the allure of unlimited PTO policies, describing them as “just a bad policy with good marketing.” The statistics reveal that employees with unlimited PTO take significantly fewer days off than their counterparts. A more traditional PTO policy, Eilat-Raichel argues, has proven to be more effective in empowering employees to take necessary breaks.

For those navigating job offers, Eilat-Raichel advises asking about the carryover of PTO policies and the expectations surrounding unlimited PTO policies. Understanding the company’s culture and the manager’s expectations is key to making the most of these benefits. Moreover, prospective employees should be wary of the reasons behind a company’s unlimited PTO policy, ensuring it supports a healthy work culture.

Addressing the broader picture, Eilat-Raichel points to inflation, the economy, and the job market as critical drivers for companies to rethink their benefits packages. With employee burnout becoming increasingly costly and the economic landscape shifting, providing financial security and PTO freedom is not just beneficial for employees but is a strategic move for employers.

Looking ahead, Eilat-Raichel sees fintech as a pivotal force in shaping the future of employee benefits. The focus is shifting towards offering personalized benefits plans that cater to individual needs while promoting a culture that values self-care and wellness. “A one-size-fits-all PTO plan isn’t going to cut it anymore,” Eilat-Raichel asserts, highlighting the role of fintech in providing the tools and resources needed for both employers and employees to thrive.

Ultimately, reinventing employee benefits strategies is not just a matter of staying competitive; it’s about addressing the real and pressing needs of the workforce in a changing world. In the face of evolving economic pressures and shifting work-life balance expectations, companies must adapt. By leveraging financial wellness programs like Sorbet, prioritizing flexibility in work arrangements, and harnessing fintech innovations, businesses have the opportunity to craft benefits packages that resonate deeply with their employees.

Such strategies not only reflect a company’s commitment to its workforce’s well-being but also contribute to fostering a healthier, more engaged, and ultimately more productive workplace. This approach ensures that companies can retain top talent and maintain a competitive edge in their respective industries.