- January 25, 2023
- Posted by: Content Team
- Category: Blog
Understanding the key employee trends that are shaping the future of the workforce can help benefits leaders develop a deeper understanding of what their employees need to feel supported and fully enabled to succeed. Below, we share five important employee trends that modern leaders should keep in mind and explore how each relates directly back to a competitive benefits strategy.
Employee Turnover Rates are Rising
Employees are leaving their jobs faster than ever before and turnover rates have increased by 88% since 2010. When employees leave their roles, it costs anywhere between half and twice as much of that individual’s salary to find and hire a replacement. Gallup estimates that on average, employee turnover costs U.S. companies $3 trillion per year.
This trend highlights the pressing need to develop a competitive benefits package. The most commonly cited reason employees leave their jobs is a desire for better compensation, meaning higher pay and better benefits. To attract and retain top talent, it is critical to develop a benefits strategy that is attractive enough to keep employees at your company.
Multiple Generations in the Workforce
With Baby Boomers, Gen X, millennials, Gen Z and the “Silent Generation” all working, today’s workforce contains more generations at once than it ever has before. This is due in large part to increased lifespan and delayed retirement.
A Growing Skills Gap
The “skills gap” refers to the mismatch between the skills employers need and the skills job seekers and current employees possess. The gap is large and continues to broaden. If left unaddressed, it is estimated to cost the U.S. economy $2.5 trillion dollars over the next decade.
One benefit that addresses this trend is opportunities for professional development. Professional development programs are correlated with increased job satisfaction, reduced turnover and are frequently cited as a high priority for prospective job seekers.
Mental Wellness Is Increasingly Prioritized
The importance of mental wellness in the workplace has been gaining more attention in recent years. Employees are becoming more vocal about the need for resources to support their overall wellbeing. This trend was already present before the pandemic, but it has become even more crucial in light of the unique challenges faced in 2020. Many companies, such as Target, Salesforce and PwC, have expanded their mental health benefits for employees as a response to the pandemic and have reported positive results from these changes. When employees have their basic physical, mental and emotional needs met, they are better equipped to perform well in their roles.
Remote Work Will Become Normal
The shift towards remote work has accelerated in recent years, with many experts predicting that it will become the norm. The COVID-19 pandemic has played a significant role in this trend, with a large portion of the workforce now working remotely. As a result, traditional benefits offered in the office setting are no longer applicable, and employers are having to adapt and offer alternative benefits that cater to remote employees. This includes meal delivery vouchers, virtual team outings, and financial assistance for setting up a home office. It is crucial for leaders to recognize this trend and adapt their benefits strategy accordingly to ensure their company is prepared for the future.
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