7 Key Employee Benefits Trends in 2024
January 31, 2024
7 Key Employee Benefits Trends in 2024

Attracting and retaining employees has challenged employers since the onset of the COVID-19 pandemic. In 2024, the labor market is expected to cool slightly; however, competition for talent will remain. As such, employers must remain agile and adapt to developing labor and market trends that will shape the market in 2024. In particular, current labor challenges are forcing employers to find ways to balance rising health care costs and inflation while providing employees with benefits they value and need. Understanding this year’s key employee benefits trends can help employers attract and retain talented individuals in an evolving labor market.


This article discusses seven key employee benefits trends in 2024.


1. Managing Health Care Costs

High inflation, provider shortages, an increase in serious chronic conditions and deferred care due to the pandemic continue to drive health care costs. According to several industry surveys and reports, employers anticipate health care costs to grow between 6% and 8.5% in 2024, the largest increase in more than a decade. This year, employers may struggle to mitigate skyrocketing health care costs while keeping benefits affordable for employees. Thus, many employers will plan and implement multiple cost-saving strategies in 2024 to mitigate rising health care costs, such as:


  • Modifying health plan designs
  • Incorporating health care analytics
  • Using artificial intelligence to streamline administrative workflows, help employees make informed benefits decisions and decrease costs
  • Implementing pharmacy management strategies
  • Maintaining full coverage of recommended prevention and screening services
  • Tailoring benefits to meet employees’ specific needs
  • Expanding voluntary benefits offerings
  • Improving employee health care literacy
  • Investing in more virtual health opportunities
  • Incentivizing employees to seek cost-effective care options
  • Revisiting cost-sharing arrangements


2. Increasing Personalization and Flexibility

The modern workforce is comprised of four or five generations of workers from various backgrounds. In 2023, many employers struggled to find a benefits plan that satisfied their entire workforce. According to the Life Insurance Marketing and Research Association’s 2023 Workforce Benefits Study, nearly a third of all employers said that meeting the needs of their multigenerational workforce was a primary challenge. In 2024, employers will increasingly offer personalized and flexible benefits to address the unique needs and expectations of individual employees. The following are popular options for benefits customization:


  • Flexible spending accounts
  • Flexible work arrangements
  • Customized retirement plans
  • Convertible paid time off
  • Domestic partner benefits
  • Broader medical coverage
  • Expanded leave
  • Diverse wellness programs
  • Personalized learning and development opportunities


3. Prioritizing Employee Mental Health

Employee mental health is a priority for many employers in 2024. Countless employees are experiencing a combination of mental health concerns, including stress, lack of motivation and reduced focus. High inflation and widespread financial stress are exacerbating these issues, impacting workplace productivity, retention and morale. Given the impact employees’ mental health can have on an organization, employers are considering employees’ mental health while making important business decisions in 2024. To this end, savvy employers will continue prioritizing employee mental health in 2024 with the following methods:


  • Finding specialized mental health treatment from chosen vendors
  • Providing meditation and mindfulness resources
  • Expanding employee assistance programs to address burnout and other mental health challenges
  • Offering virtual therapy sessions
  • Providing managers with training to recognize employee behavioral issues
  • Expanding mental health service offerings
  • Investing in programs that build resiliency and improve coping strategies
  • Conducting anti-stigma behavioral campaigns


4. Focusing on Belonging

While more employers invested in diversity, equity and inclusion (DEI) initiatives in 2023, many employees—especially those from underrepresented and marginalized groups—continue to feel excluded. These emotions can undermine work performance, inhibiting creativity, participation and willingness to collaborate. They can also increase the risk of burnout and stress, leading to increased turnover and higher rates of absenteeism.


In 2024, employers are expected to address belonging to bridge the gap between existing DEI initiatives and the impact felt by employees. With that in mind, many employers are more often focusing on the factors that impact workplace belonging, such as organizational culture, leadership behaviors and personal relationships among employees. Others are introducing initiatives to foster belonging, such as:


  • Encouraging supervisors to check in with employees
  • Promoting social bonds within the organization
  • Encouraging open-door policies
  • Creating time for employees to connect socially
  • Facilitating trusting relationships (e.g., mentorships)
  • Celebrating employee achievements
  • Involving employees in critical business decisions
  • Creating fair and transparent compensation and promotion practices


5. Expanding Family-building and Reproductive Health Benefits

Reproductive health care benefits became a key issue for employers in 2023 after the U.S. Supreme Court’s Dobbs v. Jackson Women’s Health Organization decision ended federal protections for abortion rights and permitted states to implement their own regulations. Numerous employers will continue to expand reproductive health benefits in 2024 to meet employee needs and remain competitive.


Additionally, more employers are offering family-building benefits, as they have proven to be highly valued among employees who are looking to start or build their families. The impact of these benefits also often extends beyond affected individuals to make employees feel welcomed and supported in the workplace, improving engagement, productivity and retention. In the next year, many employers are expanding benefits offerings to include the following:


  • Paid parental and adoption leave
  • Child care subsidies
  • Flexible scheduling and remote and hybrid work options
  • Surrogacy benefits
  • Family planning assistance
  • High-risk pregnancy care
  • Pregnancy, lactation, postpartum and menopause support
  • Testosterone deficiency treatments


Employers providing legal reproductive care benefits should assess the implications of these offerings as reproductive health care laws continue to evolve.


6. Balancing Flexibility With Return-to-Office Mandates

Many employers responded to 2023’s tight labor market by offering remote and flexible work opportunities. As some employers begin issuing return-to-office mandates in 2024, organizations that are rigid in their policies may risk losing talented individuals and DEI efforts. They may also struggle to attract new employees from a smaller talent pool. As such, in 2024, proactive employers will focus on balancing employee expectations and needs with the benefits of having employees in the office. For instance, they may offer hybrid work options as a compromise for employees who are happier and more productive with flexible work arrangements.


Additionally, employers are increasingly focusing on creating safe, empathetic and transparent workplace environments to promote employee well-being as they return to the office. Some employers are also offering incentives for in-person employees, such as:


  • Commuter benefits
  • Child care benefits
  • Catered meals


7. Prioritizing Preventive Care Services

In 2023, record-high inflation and skyrocketing medical care costs prevented numerous employees from seeking necessary preventive care for fear of incurring medical debt. However, avoiding medical care can worsen long-term health outcomes and increase costs for both employers and employees by preventing the early detection of serious illnesses. As employers struggle to mitigate rising health care costs in 2024, many will focus on keeping employees healthy and providing benefits education to help guide them on their journeys to be educated health care consumers, maximize their benefits and understand the importance of routine care.


Summary

Although every workplace is different, employers who understand current benefits trends will be better equipped to provide employees with the benefits they desire and need. In an evolving labor market, an attractive benefits plan is critical to maintaining a healthy, happy and productive workforce, which can ultimately impact organizational productivity, engagement and revenue.


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New York Employers Must Update Employee Handbooks for Reproductive Health Rights

February 3, 2025
Overview of the New Ruling New York employers are once again required to provide a notice in their employee handbooks about reproductive health rights following a recent ruling from the U.S. Court of Appeals for the Second Circuit. The ruling vacated a previous permanent injunction that had blocked the enforcement of the law, meaning employers must now comply with the New York Reproductive Health Bias Law (Labor Law § 203-e). Reproductive Health Bias Law Requirements The Reproductive Health Bias Law was enacted in November 2019 to ensure employees and their dependents can make reproductive health decisions without facing discrimination in the workplace. The law prohibits employers from taking retaliatory actions against employees regarding their reproductive health decisions and requires employers to keep employees' reproductive health information confidential unless there is prior written consent. Under the law, employers must include a notice in their employee handbooks informing employees of their rights and remedies under the Act. This is an essential update that must be made to comply with the law. Impact of the Second Circuit Ruling Religious organizations had challenged the law, arguing that the notice requirement violated their First Amendment rights. However, the Second Circuit disagreed, ruling that the notice requirement was lawful and similar to other workplace disclosure laws. The court noted that while the policy motivating the law may be controversial, the law itself and the obligation for employers to comply are not in question. Action Required for Employers Even though there is no specific penalty for failing to comply with the notice requirement, employers are encouraged to review and update their employee handbooks in light of the court's ruling to ensure they are compliant with the law. For Simco Clients: For clients who utilize Simco’s employee handbook services, rest assured this requirement is already included, and no additional steps are needed.

Pre-Employment Drug Testing: What Job Seekers Need to Know

February 1, 2025
Pre-employment drug testing is a hiring practice that has sparked debate in recent years. While some industries rely on it for safety and compliance, others are rethinking its necessity—especially as marijuana laws evolve. If you're actively job searching, knowing what to expect can help you prepare, avoid surprises, and understand your rights. Who Still Requires Drug Testing? Not all industries conduct pre-employment drug testing, but for certain roles, it's still a non-negotiable requirement. Some of the most common sectors where testing remains standard include: Transportation & Public Safety – Truck drivers, pilots, transit operators, and law enforcement Healthcare & Childcare – Nurses, physicians, pharmacists, and daycare providers Government & Military Contracts – Federal employees, military personnel, and defense contractors Manufacturing & Construction – Heavy equipment operators and industrial workers handling hazardous materials However, policies vary widely even within these industries. Some companies are now loosening restrictions for non-safety-sensitive positions, recognizing that outdated drug testing policies may limit their talent pool. What Substances Are Typically Screened? Most pre-employment drug tests screen for common illicit substances, but the depth of testing can vary. Standard screenings include: Five-Panel Test – Detects marijuana, cocaine, amphetamines, opiates, and PCP Expanded Panel Tests – Can include benzodiazepines, barbiturates, synthetic opioids, and even alcohol Employers may use different types of tests, including urine, saliva, blood, or hair follicle analysis. Hair follicle testing, for example, can detect drug use from months prior—something applicants should be mindful of. The Evolving Landscape of Marijuana Testing One of the most significant changes in pre-employment drug testing involves marijuana. With over half of U.S. states legalizing marijuana in some form, companies are reevaluating their stance. Some states prohibit employers from disqualifying candidates for off-duty marijuana use. Other states still allow testing but require employers to prove impairment, not just presence. Federally regulated positions, such as those in transportation, maintain strict no-tolerance policies. This shift means that while some applicants may no longer face automatic disqualification for marijuana use, it’s still important to know an employer’s policy before assuming it won’t impact hiring decisions. What Happens If You Fail a Pre-Employment Drug Test? The consequences of failing a drug test depend on multiple factors, including company policy, industry regulations, and state laws. In regulated industries (e.g., transportation, healthcare, federal employment), a failed test almost always results in immediate disqualification. Some employers allow re-testing or a waiting period before reapplying, particularly for marijuana use in certain states. If you have a valid prescription for a tested substance (e.g., opioids or ADHD medication), you may need to provide documentation to avoid disqualification. Additionally, some companies offer assistance programs or second-chance policies, especially if an applicant is upfront about past use or addiction recovery. Do Employers Really Benefit from Drug Testing? With the workforce evolving, many companies are questioning whether traditional drug testing policies still serve their intended purpose. Some argue that testing reduces liability, improves workplace safety, and ensures reliable employees. However, others believe that outdated policies exclude qualified candidates, especially in a competitive job market. The Arguments for Drug Testing: Reduces workplace accidents in safety-sensitive roles Ensures compliance with federal and industry regulations Discourages drug use in high-responsibility positions The Arguments Against Drug Testing: May eliminate qualified candidates for non-safety-sensitive roles Does not account for impairment vs. past use (especially with marijuana) Can be costly and time-consuming for employers Companies that still require drug testing must weigh these factors and ensure their policies align with modern workforce expectations. The Future of Pre-Employment Drug Testing The debate over drug testing isn’t going away anytime soon. As laws and attitudes continue shifting, companies may move toward impairment-based testing rather than zero-tolerance screening. This means job seekers should stay informed, especially in industries where testing is likely to remain a requirement. For now, the best approach is to understand employer expectations, know your legal protections, and be prepared for potential screenings as part of the hiring process.

OSHA Form 300A Requirements: Key Deadlines for Employers

January 30, 2025
Workplace Posting for Form 300A Begins February 1 Employers with 11 or more employees at any point in 2024 must display the Occupational Safety and Health Administration (OSHA) Form 300A, Summary of Work-Related Injuries and Illnesses, from February 1 to April 30. Even if no recordable incidents occurred in 2024, this posting is mandatory. The form must be certified by a company executive and displayed prominently in each workplace where employee notices are typically posted. Certain businesses are exempt from OSHA’s regular recordkeeping requirements, including this posting, if they employ 10 or fewer people or if their primary business activity is considered low hazard according to OSHA's guidelines. A full list of low-hazard industries, categorized by NAICS codes, is available here . However, even exempt companies must report fatalities or incidents resulting in hospitalization, amputation, or loss of an eye. Electronic Submission of Form 300A Due by March 2 Businesses with 250 or more employees from the previous year, or those with 20-249 employees in high-risk industries, must submit their Form 300A data electronically through OSHA's Injury Tracking Application (ITA) by March 2, 2025. This requirement applies based on the number of employees at a specific location, not the entire company. Employers under State Plans are also required to submit electronically. Exemptions from this electronic submission apply to employers who: Are exempt from OSHA's regular recordkeeping rules. Had fewer than 20 employees in the past year. Had between 20 and 249 employees but aren’t in the designated high-risk industries. Additional resources, FAQs, and access to the ITA are available on OSHA’s ITA page . Submission of Forms 300 and 301 Required by March 2 Employers in high-hazard industries with 100 or more employees are required to submit data from both their Form 300 (Log of Work-Related Injuries and Illnesses) and Form 301 (Injury and Illness Incident Report) through the ITA, in addition to their Form 300A submission. Help with Coverage Determination Employers can use OSHA’s ITA Coverage Application to assess whether they need to submit injury and illness data electronically or refer to the State Plan for specific reporting requirements.

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