Remote working vs health-care | What benefits really matter to US workers in 2024?

Employee retention has continued to be a critical issue for U.S. companies in 2024, even as the labor market cools and the turnover rate declines from its astronomical pandemic-era high.

The anxieties of HR over high attrition aren’t unfounded; according to a recent CNBC workforce survey, over one-third of workers have considered leaving a job in recent months. Of course, this poses a significant challenge for employers - how to keep their workforce engaged and satisfied.

And whilst there’s still demand for more aesthetic employee benefits, surprisingly, the answer lies not just in flashy perks, but in essential benefits like fully paid health-care premiums.

Fully paid health-care premiums - a top priority?

The same survey revealed that the number one benefit employees desire is fully paid health-care premiums, with more than half (51%) of employees favoring this over other typical benefits, including a 401(k) retirement plan match (37%), gym memberships (27%), and free food (26%).

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This preference emphasizes a significant financial strain currently affecting the workforce: while roughly three-fourths of employees can afford the health-care they need without financial hardship, this drops to only 50% among the lowest income levels, according to research from Mercer.

Additionally, nearly one-in-five workers would accept a lower wage in exchange for more comprehensive health-care benefits.

“For some employee segments, affordable health care may be a higher priority than a generous 401(k) match,” notes Rebecca Warnken, Senior Vice President of Health Solutions at Aon, which itself conducted research with similar findings in recent months.

The research indicated that Black, Hispanic, Latino, and younger workers are more likely to switch employers for better health benefits, reflecting the immediate need for affordable health care over long-term financial security.

The persistent challenge of health-care costs

Currently, employers subsidize about 81% of health-care plan costs, with employees covering the rest. Despite the high subsidy, health-care inflation typically outpaces general inflation.