Employee benefit and reward trends to look out for in 2024
The landscape of the UK working population is undergoing a significant transformation.
With a remarkable 73% employment rate for 50 to 64-year-olds, and the pension age set to hit 67 by 2027, is your business ready to address the needs of an ageing workforce to ensure sustained productivity?
As people continue to work longer, the focus on employee benefits and reward trends becomes crucial in maintaining the wellbeing and efficiency of teams.
Bravo Benefits recognises this changing landscape and can offer bespoke solutions tailored to meet the specific needs of your team.
But what factors are causing these changes in the first place?
External factors shaping employee benefits packages:
Several external factors are significantly influencing employee benefits packages:
- An increase in life expectancy. In 2020, the average life expectancy in the UK was 81, 4 years higher than in 2000, and although it appears to be levelling out at this rate, it shows no signs of decreasing.
- An ageing workforce. Over 30% of the workforce in the UK are now over 50.
- A rising retirement age. The pension age is set to rise to 67 by 2027 in the UK.
- Changing demographics. There are not enough young people coming into the labour market to replace those over 50 who will be retiring in the next 15 years or so.
- The increasing prevalence of mental health struggles. Mental health conditions in the workplace have risen by 55% since 1990.
- Budget constraints for both employers and employees.
Simultaneously, labour shortages experienced by 13.3% of businesses in the UK are adding pressure to recruitment and retention policies.
The case for employee benefits
In response to these challenges, a broader range of benefits for employees have to be available in the workplace. Not only do employers need to help their employees work better, for longer, they need to ensure they hold on to staff with the skills and expertise they need as long as possible.
The trend post-pandemic sees employers emphasising healthy workplace environments, creating a better work-life balance, and providing easy access to support networks and services.
From private medical coverage to mental health support, employers are prioritising employee wellbeing.
Let’s look at these trends in more detail.
Employee benefit and reward trends
1. Preventative measures
It’s no surprise that an ageing workforce brings with it the potential for increased rates of cognitive and physical impairment.
To counteract the challenges posed by an older workforce, we anticipate a surge in benefits designed to prevent poor health and deal with chronic conditions, such as health screenings and diagnostics.
These benefits will help employees get an early diagnosis and intervention, reducing the impact of their conditions and ensuring they stay as productive as possible for as long as possible.
Talk to us
If you would like to find out more about our solutions, get in touch.
2. More solutions to support mental wellbeing
Mental health conditions in the workplace have risen by 55% since 1990 costing the UK economy £28 billion annually.
Employee benefits providers, HR professionals, and consultants need to consider the mental well-being of employees as a top priority.
The upcoming trend in employee benefits leans towards providing therapeutic support, including psychological therapy.
Here at Bravo Benefits, we recognise this and direct all our clients wanting to improve workplace wellbeing to our range of Employee Assistance Programmes. These handy apps are designed to provide education about mental health issues.
One of our EAPs, MyMindPal also helps combat workplace stress and burnout. Through tailored exercises, employees can learn stress management techniques, fostering relaxation and a positive mindset.
The app ensures personalised activities, tracks progress, and intelligently guides users toward mental health support when needed.
Talk to one of our consultants today to find out more.
3. Increased reliance on technology
There are great solutions out there to help employers tackle the trends that are emerging in the labour market. But sometimes, it is difficult to get employees to engage with the solutions that will give them the support they need.
Technology is emerging as a powerful tool to overcome this challenge.
Online services like 24/7 GP and remote confidential counselling enhance accessibility, particularly for remote or hybrid teams and benefit platforms like Bravo’s Smart Hive empower SMEs to effectively showcase and deliver their benefits to their employees.
Allowing you to keep all your benefits in one accessible hub, it’s backed by our dedicated support team for a seamless experience. This ensures your team can access and utilise their benefits with a simple click. Find out more here.
4. Benefits that give financial support
As budgets all over the UK are squeezed by the rising cost of living, employers are beginning to recognise that employees value benefits that support their financial security.
These benefits can range from educational resources, such as financial wellbeing education platforms - to resource banks that equip employees with the skills they need to become financially secure - to debt and lending solutions.
On top of this, employers are utilising reward strategies that put extra cash in their employees’ pockets. Retail vouchers and eGifting are becoming popular means of acknowledging employees’ contributions and supplementing their pay packet.
Secure your workplace future with Bravo Benefits
Looking ahead, the UK workforce will be multi-generational, older, and more technologically inclined.
Employers must adapt to these changes by offering innovative benefits that support prolonged careers and address health challenges.
Here at Bravo Benefits, we stand ready to provide tailored solutions that meet the unique needs of your team, supporting them in every aspect of their wellbeing journey. Have a chat with us today.
