2024 Annual Benefits Trend Report
2024 Annual Benefits Trend Report
NFP’s US Benefits Trend Report is designed to help employers align affordable benefits with employee needs for organizational success.
NFP US Benefits Trend Report
The NFP US Benefits Trend Report provides leaders with data-driven strategic guidance for offering competitive, cost-effective benefits tailored to the priorities of today’s diverse workforce. Based on employer data and expert insights, this year’s report covers increasing medical costs, shifts in employee needs and the economic pressures affecting everyone.
Trends in Employee Benefits: Key Takeaways
Employers are facing new challenges with legislation and ballooning costs.
65%
of employers see price transparency as a challenge.
18%
of employers see price transparency as an opportunity.
76%
of employers report that it is either very or extremely important to establish a best practice fiduciary policy and practice in 2024.
21%
of employers plan on increasing their benefits budget by at least 10%.
76%
of employers are concerned about increasing pharmacy costs. However, 31% do not use a pharmacy consultant.
Employees are struggling with stress and the current economic environment — and employers have an opportunity to better support them.
33%
of employees report feeling distracted at work by non-work issues.
58%
of workers are interested in mental fitness programs such as resiliency training or meditation programs.
Employees need lower cost options that meet their needs, and more support in choosing benefits.
42%
of employees feel their benefit offerings don’t meet their needs well.
37%
of employees do not feel confident in their ability to select the benefits that best meet their needs.
56%
of employees note that economic concerns will impact their benefits decisions.
38%
of employees feel that economic concerns will cause them to choose a lower-cost plan.
50%
of all employees have $1,000 or less in savings to cover the cost of unexpected expenses.
Health Care Cost-Containment
Driven by increases in chronic diseases, claims for major medical events and surging prescription drug costs, health care expenditures are projected to see a significant rise in the coming year. With a predicted 7% increase overall, benefits teams are clamoring for strategies to disrupt these mounting costs with minimal disruption to workers.
Well-Being and Engagement
Employee well-being permeates every facet of HR and what they deliver. In fact, the success of any HR team’s people operations is dependent on their capacity to foster resilient, engaged and fulfilled workers.
Voluntary/Supplemental Benefits
Voluntary benefits are an integral component of a comprehensive employee benefits offering. As many organizations are searching for ways to continue to provide quality, personalized coverage options without significantly increasing costs, supplemental benefits may be the perfect solution.
The 2024 NFP US Benefits Trend Report draws on data from NFP’s US Employee Benefits Survey 2023 and NFP’s US Employer Benefits Survey 2023. Any other sources are as referenced throughout. For full information on the methodology for each NFP survey, contact marketing@nfp.com.
About the Data
NFP is a leading property and casualty broker, benefits consultant, wealth manager, and retirement plan advisor that provides solutions enabling client success globally through employee expertise, investments in innovative technologies, and enduring relationships with highly rated insurers, vendors and financial institutions. Our expansive reach gives us access to highly rated insurers, vendors and financial institutions in the industry, while our locally based employees tailor each solution to meet our clients’ needs. We’ve become one of the largest insurance brokerage, consulting and wealth management firms by building enduring relationships with our clients and helping them realize their goals.