With over 4,000 respondents, the Society for Human Resource Management’s 2023 Employee Benefits Survey found that the number of employers offering family support and leave benefits has significantly increased since 2022. Numerous factors may have contributed to the increase in family benefits offerings, such as heightened employee expectations, an increased number of employers recognizing the importance of supporting employees and their families, and more flexible time because of the COVID-19 pandemic. This article further explains the trend in parental and family leave programs.
Survey Results
Over one-third (39%) of organizations now offer paid parental leave, a six-point percentage increase from 2022. Paid maternity and paternity leave increased by five percentage points from the previous year and are currently provided by 40% and 32% of employers, respectively. The report found that paid adoption leave and paid foster parent leave also increased from 2022 to 2023, rising six percentage points and three percentage points, respectively.
Employer-ranked Importance of Benefits
Employers continue to rank health care benefits as the most crucial benefit offering, with 89% of HR leaders listing it as “very important” or “extremely important.” Among health care coverage options, preferred provider organizations remained the most common (82%). High deductible health plans linked to health savings accounts (HSAs), flexible spending accounts (FSAs) and health reimbursement arrangements (HRAs) continue to gain popularity, with 64% of employers offering such plans, up from 61% in 2022. Group HRAs and medical FSAs have slightly decreased in popularity.
Surveyed employers also assigned high importance to the following benefits:
Retirement savings and planning benefits (81%) Leave benefits (81%)
Flexible working benefits (70%) Family-friendly benefits (68%)
Professional and career development benefits (67%) Financial (nonretirement) benefits (52%)
Wellness benefits (48%)
Employer Takeaway
Family benefits are an effective way for employers to support employees and their families. Such benefits show employees that their employers value them, which can ultimately increase employee satisfaction, boost morale, and improve attraction and retention. Understanding current benefits trends provides savvy employers with an opportunity to gain a competitive advantage and improve their attraction and retention efforts.
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