November 7, 2023
A CHRO Guide to Enhance Employee Benefits in 2024
Are you ready to tackle the challenges of inflation in 2024? As a forward-thinking Chief Human Resources Officer (CHRO), you’re undoubtedly aware of the profound impact that inflation can have on your employees’ financial well-being and job satisfaction. In today’s fiercely competitive talent market, providing attractive compensation and employee benefits packages is vital to retain and attract top talent. Explore some innovative strategies that can help your organization stand out and support your employees as they grapple with rising prices and the ongoing effects of inflation.
Acknowledging The Inflationary Pressures
Inflation is here to stay, and its effects on employees are becoming more pronounced. Recent data from the Producer Price Index (PPI) suggests that prices will continue to rise, with a reported 10.8% increase since May 2021. This means that the cost of living remains high, making it essential for CHROs to take proactive measures to alleviate the financial strain on their workforce.
Strategies To Support Your Employees
Leading organizations have already begun to address the inflation issue by implementing innovative benefit solutions. Goldman Sachs Ayco and Mercer have shared some noteworthy approaches:
- Consider one-time bonuses as “market adjustments” to acknowledge consumer inflation or as employee appreciation bonuses.
- Evaluate minimum wage increases, aiming for a minimum or average hourly rate of $15 or more.
- Offer short-term pay increases for hourly workers, providing relief for a specified period.
- Reconfigure merit pay raises by holding more frequent assessments, shifting from performance-based raises to flat percentage increases, and increasing average raises substantially.
Expanding Employee Benefits Offerings
- Focus on employee financial wellness, with 80% of employers already addressing this and 63% planning to increase their financial wellness budgets in the next one to two years.
- Provide voluntary benefits such as insurance coverage, child- and elder-care support, and student loan repayment assistance.
- Implement employee discount programs, offering discounts on various expenses and services to improve employee financial wellness and job satisfaction.
Innovative Employee-Centric Ideas
The most innovative companies are going above and beyond to attract and retain top talent while addressing the impacts of inflation:
- Lifestyle Spending Accounts – These after-tax accounts, funded exclusively by the employer, allow employees to allocate funds for their choice of benefits and expenses. Examples include reimbursement accounts for gym memberships, student loan repayment, ID theft protection, and support for loved ones or pets. Employers can also direct funds toward voluntary benefit plans or wellness-specific items to support employees’ well-being.
Emergency Savings Accounts
- Employers can support their workforce through partnerships with banks and credit unions to provide favorable payroll deduction programs with attractive savings rates.
- Consider matching after-tax 401(k) contributions to help employees build emergency funds accessible through in-service withdrawals.
- Stay informed about potential legislative changes that may provide more tax-advantaged options for employer assistance in this area.
- In response to the COVID-19 pandemic, companies began offering more flexible paid time off (PTO) policies.
- Many organizations now allow employees to convert a portion of their PTO to cash or direct it towards student loan payments, 401(k) contributions, or 529 savings plans.
Special Equity Grants
- Some companies are expanding compensation packages by offering one-time or off-cycle equity award grants to employees.
- Consider expanding long-term incentive plans (LTIP) to provide equity awards to all employees, boosting job satisfaction and loyalty.
These innovative solutions cater to your diverse workforce, helping them navigate the challenges of inflation effectively. By implementing these strategies, your organization can maximize the value of your employees’ benefits and compensation, saving time and increasing their confidence in their financial well-being.
Ready to Tackle Employee Benefits in 2024? TaskHuman Can Help!
As you plan for 2024, remember that addressing the impact of inflation through enhanced employee benefits is not only a strategic move but a compassionate one that will set your organization apart in a competitive talent market. TaskHuman offers personalized guidance and support to help your employees make the most of these benefits. With TaskHuman, you can provide your employees with a trusted partner in their financial well-being journey, leading to increased retention, job satisfaction, and productivity. TaskHuman is here to support you in making 2024 a year of growth, stability, and success for both your organization and your valued employees. Contact us today to get started.
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