As employers anxiously await their healthcare renewal and while increases are predicted to be between 5% to 10%, GovCons are focusing on cost management. At the same time, enhancing benefits to help attract and retain workers remains a top priority.
“What are some cost-effective, yet unique benefits?”
“What new benefit offering should we add this year?”
“What total rewards package will keep our organization a step ahead of our competitors?”
BOOST reached out to several trusted benefit partners in the industry to gain their insight and expertise on what trends they are seeing. Business Benefits Group Chief Human Resources Officer, Michelle Milam says, “We continue to see a rise of interest in Parental Leave programs, many driven by states in which an employer’s remote workforce may be residing, so companies are rushing to catch up and remain equitable across the entire organization.” Milam also mentions that some employers are focusing on reproductive health benefits as well as lifestyle spending accounts which continue to gain popularity in recent years. This type of benefit gives employees more choices on how to use funds for their health and wellness.
AssuredPartners Vice President, Mike O’Connor is seeing flexible work arrangements continue to be a priority for employers. O’Connor says, “Remote work and flexible working hours are becoming standard.” To attract and retain talent it is imperative to embrace this philosophy.
Another top benefit AssuredPartners is seeing is Financial Wellbeing Programs. In addition to 401(k)s, employees want debt management and emergency savings options. Many of these will become standard with 401k offerings in the coming years thanks to the Secure Act 2.0.
Paul Younkins, Chief Innovation Officer and Founding Principal at TriBridge Partners says, “Benefit trends for federal contractors differ slightly from company to company depending on the vision of that company, the contracts they are targeting, the next three years of growth/perpetuation/exit, and the overall business philosophy of the owner(s).”
Some top 2024 benefits trends TriBridge Partners is seeing include: Executive benefits/incentives, wellness benefits to include preventive mental health and coaching, DEI benefits alignment, genetics and nutritional-based incentives, and lifestyle benefits.
Finally, it is imperative to understand fringe benefit compliance for GovCons working under the Service Contract Act (SCA) or expecting some of these contracts in 2024. Proper reporting, administration, and subcontractor compliance are vital to avoiding penalties that could cost you more than just profits. When working with these types of contracts, a GovCon must understand SCA requirements and have a proper plan in place particularly when it comes to benefits.
2024 will be a year for employers to consider physical, mental, and financial health along with workplace flexibility. In order to remain competitive, employers need to think outside the box to attract and retain a diverse talent pool.
BOOST can help!
About the Author, Lindsay Moore
A driven and dedicated leader in her industry, Lindsay Moore has had the exceptional ability to establish rapport with clients, candidates, and hiring managers through her work in HR for the past decade. She is currently the Director of HR for BOOST LLC which supports back-office functions for government contractors. Lindsay is accredited by Stevenson University (BS), Loyola College in Maryland (MS), and PHR (Certification).