ROLLING MEADOWS, Ill.,
June 27, 2024 /PRNewswire/ --
According to Gallagher's 2024 U.S. Organizational Wellbeing
Report, organizations continue to rank retention as the top
priority for HR (62%) and second highest for operations (45%) —
only behind growing revenue or sales. And although half of
employers experienced a turnover rate of at least 15% in 2023, 2 in
3 (67%) experienced turnover within their targeted range or lower,
indicating that rates are stabilizing.
"While low attrition rates are a positive indicator for an
organization's current ability to retain employees, this may not
always translate to high levels of engagement and productivity,
which can be impacted by macro-economic factors as much as an
employee's experience at work," said William F. Ziebell, CEO of Gallagher's Benefits
& HR Consulting Division. "Employers should control what they
can by continuously seeking opportunities to better align employee
experiences with evolving generational expectations and offering
benefits and programs that will entice their workforce to stay with
the organization."
The Gallagher study, which draws data and insights from more
than 3,500 organizations across the U.S., identifies current and
emerging trends with the goal of helping employers optimize the
wellbeing of their organization as a whole by highlighting
organizational strategy, HR technology, and healthcare costs
considerations.
Employers are reevaluating total rewards enhancements but
emotional wellbeing remains the priority.
Though many employers refreshed their total rewards in 2022 and
2023, fewer have implemented enhancements in 2024 as they're now
looking to strategically simplify and optimize existing resources
and ensure employees understand how to maximize the value of their
current benefits.
Each aspect of employee wellbeing (physical, emotional, career,
and financial) dropped 2 to 10 points in its level of importance to
employers this year. Nevertheless, emotional wellbeing continues to
be the dominant focus for 64% of employers, with an emphasis on
mental health and social connectedness.
As such, it's no surprise that a strong work culture remains a
vital part of the employee experience. A sense of community at work
can provide emotional support, reduce stress and contribute to a
sense of belonging. And more than a third of employers rank a
strong culture among their highest HR priorities (35%, up 2
points).
Clearly communicating the purpose of benefits is a critical
key to navigate rising healthcare costs and improve employee
engagement.
While rising healthcare costs aren't new, they continue to
remain in the spotlight with the emergence of high-priced
weight-loss medications, as well as access to other cell and gene
therapies. Because nearly 3 in 4 employers (73%) believe their
healthcare costs will rise in 2024, controlling employee benefits
costs increased as a top priority for operations (19%, up 4 points)
and HR (28%, up 7 points) after hitting a multi-year low in the
year before.
To better control expenses and drive retention, employers should
evaluate their current rewards and optimize them by identifying
benefits that no longer provide significant value and phasing them
out or replacing them with more relevant options. It's also crucial
that employers provide opportunities for employees to familiarize
themselves with the purpose of each benefit. Not only will this
allow employees to feel as though they understand what's offered to
them, but it also increases appreciation for the value of the
benefits package the employer provides.
"We're finding that leading with intentionality and
simplification is key to striking the right balance as employers
grapple with managing costs and employee expectations," said
Ziebell. "Knowing what your employees need is important, but it's
equally important that they understand what you offer as an
organization and why."
ABOUT THE ORGANIZATIONAL WELLBEING REPORT
Gallagher's
2024 U.S. Organizational Wellbeing Report is part of the Workforce
Trends Report Series, covering organizational strategy, HR
technology, and healthcare costs considerations. It presents recent
findings on current and emerging trends to help employers optimize
their investments in the wellbeing of their organization as a
whole. Other reports in the series center on a specific aspect of
employee wellbeing, including physical, emotional, career, and
financial. Data and insights are compiled from a variety of
Gallagher benchmarking surveys conducted each year. In this report,
they're based on the results of the U.S. Benefits Strategy &
Benchmarking Survey, gathered from January to March 2024. A total of 3,552 organizations across
the U.S. participated. Findings are broken out by region,
organization size, and ownership structure for peer comparison. The
report can be found here.
ABOUT GALLAGHER
Arthur J.
Gallagher & Co. (NYSE:AJG), a global insurance
brokerage, risk management and consulting services firm, is
headquartered in Rolling Meadows,
Illinois. Gallagher provides these services in approximately
130 countries around the world through its owned operations and a
network of correspondent brokers and consultants.
Contact:
Mary Schwartz, Gallagher
847.378.5893
mary_schwartz@ajg.com
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SOURCE Gallagher