In today’s competitive business landscape, offering robust work-family employee benefits is evolving from a desirable feature to a crucial necessity for organizations aiming to attract and retain talent. According to a recent 2024 survey conducted by Ovia Health, a striking 94% of employees identified family benefits as either “important” or “extremely important,” underscoring the pressing need for companies to reevaluate their offerings. Alarmingly, nearly three-quarters of those surveyed expressed a willingness to change employers if presented with better family-oriented benefits, marking a significant shift in employee expectations.
Despite the clear demand, many employers have inadequately adapted to this changing landscape of employee priorities. The same study revealed that over 60% of employees do not perceive their current employer as family-friendly, a stark increase from 40% in 2023. Furthermore, a concerning 40% of employees rated their companies’ existing work-family benefits with a “C” grade or lower, indicating widespread dissatisfaction.
This disconnect between employee expectations and employer offerings presents a golden opportunity for organizations to carve out a competitive edge by investing in comprehensive work-family benefits in 2025. By understanding and integrating four pivotal trends identified in 2024, employers can align more closely with the evolving landscape of work-family benefits as the new year approaches.
1. Employees Are Prioritizing Paid Leave (Even More Than Employers Realize)
Among today’s workforce, Gen Z workers have become trailblazers, ranking paid leave as their foremost priority among employee benefits, eclipsing even the traditional emphasis on health insurance. Data compiled from a 2024 MetLife report reveals that an impressive 69% of Gen Z workers regard paid leave as a “must-have.”
This pivotal trend highlights that paid parental leave has transitioned from being a mere perk to an essential expectation for employees. When evaluating job offers, prospective employees are now actively seeking comparative data regarding paid leave policies, with a significant focus on leave for secondary caregivers, partners of birth parents, as well as adoptive, foster, and other non-birthing parents.
However, many organizations have yet to recognize the heightened importance employees place on paid leave, revealing a gap in understanding and alignment with worker needs. A commissioned survey conducted by Forbes Advisor illustrated that while employee preferences align closely with employer offerings, there was a glaring omission of mandatory paid time off from employers’ most in-demand benefits lists.
In fact, nearly one-third of employees selected mandatory paid time off as their top-choice benefit; yet, this critical element was missing from employers’ priorities. “Employees value mandatory paid time off more highly than employers are aware,” emphasized Dennis O’Reilly, the report’s lead writer. To attract outstanding talent, companies must broaden their paid leave offerings in the upcoming year.
2. Rising Expectations For Reproductive Healthcare Benefits
With Millennials and Gen Z poised to dominate the workforce by 2025, their expectations for comprehensive reproductive healthcare benefits are significantly raising the bar for prospective employers. A survey conducted in 2023 by HRC Fertility revealed that over 60% of these younger workers emphasized the critical importance of fertility and pregnancy benefits when considering new job opportunities.
In particular, employees are increasingly advocating for enhanced healthcare coverage related to prenatal and maternity care, leading to a demand for institutions to step up and meet these evolving needs. While reproductive healthcare remains entangled in legal complexities, the EEOC’s regulations clarify the requirement for reasonable accommodations for employees undergoing abortion or recovery.
Adding to this landscape, a new California law that became effective in 2024 mandates private sector employers with five or more employees to provide up to five days of leave following a miscarriage. Despite the fact that 53% of workers express a high regard for leave related to pregnancy loss, a mere 5% currently have access to this vital benefit. Employers acknowledging this burgeoning demand are beginning to explicitly include time off for reproductive loss in their bereavement policies.
These new 2024 regulations set a foundational standard, revealing ample opportunity for employers to gain a competitive edge by expanding their reproductive health benefit offerings in 2025.
3. Menopause Is More Than Just A Hot Flash
Recently, actress Halle Berry boldly drew attention to the topic of menopause while addressing a crowd at the U.S. Capitol, exclaiming, “I’m in menopause, ok?” This public display was part of a larger push to garner support for a bipartisan federal bill aimed at enhancing research and awareness surrounding menopause. Business leaders should pay attention as this moment underscores a broader movement among U.S. women advocating for reduced stigma surrounding menopause and increased workplace support for this natural life phase.
Women aged 45 to 64 represent nearly 20% of the workforce in the U.S., as reported by the Department of Labor. These women are typically at the prime stages of their careers. With a declining number of younger workers entering the labor market, this demographic is an invaluable and irreplaceable asset for employers.
Recognizing this trend, the Society for Human Resource Management has also joined the conversation, marking the first time it included inquiries about menopause benefits in its annual Employee Benefits Survey—one of the most longstanding employee benefits surveys in the nation.
4. Increasing Demand For Work-Family Benefits Transparency
As the appetite for work-family employee benefits escalates, so too does the call for heightened transparency within corporate offerings. “Transparency is appropriately becoming a bigger part of the conversation,” noted Penn State Dickinson Law Professor Samantha Prince in an email statement.
This demand for transparency is largely rooted in the pay transparency movements igniting across various states and cities, leading to legal mandates that require employers to disclose salary ranges and compensation structures to both current and prospective employees. Intriguingly, these regulations do not extend to employee benefits, which constitute approximately 30% of the average worker’s paycheck, as per U.S. Bureau of Labor Statistics.
“The shift toward transparency carried by pay transparency laws highlights the necessity for expansion,” elaborated Prince. “It is essential that transparency also encapsulates crucial benefits information, enabling employees to compare options and make informed decisions.” This growing emphasis on “benefits transparency” is set to define the landscape of 2024.
Demand for greater transparency has been especially directed at work-family benefits, which display marked disparities among various companies, even in similar sectors. Enhanced access to information will empower women to make employment choices that align with their family and reproductive care needs, according to Prince.
High-profile campaigns have gained traction, compelling employers to divulge comprehensive information regarding their work-family benefits. Consequently, many companies now leverage their participation in these transparency efforts as a recruitment strategy on social media platforms. With the accumulation of databases, organizations that remain reticent may increasingly navigate recruiting risks.
Researchers have progressively enhanced methodologies for aggregating data from diverse sources into user-friendly platforms that facilitate comparisons of company policies. In 2024, Hillary Cookler, a Doctoral candidate at UCLA Anderson School of Management, launched an online database assessing the transparency and quality of paid parental leave across the 500 largest U.S. public companies.
Cookler’s findings indicated that companies embracing public transparency tend to afford more generous parental leave, suggesting that candidates valuing these benefits may perceive a lack of transparency as a potential warning sign regarding a company’s overall benefit offerings. Furthermore, candidates may interpret insufficient transparency as indicative of a company’s limited commitment to work-family balance. As a result, organizations that proactively adapt to evolving work-family benefits trends can communicate a strong message that resonates with potential hires, enhancing their ability to attract and retain top talent in the coming year.
What are the key benefits that Gen Z workers are looking for in work-family policies?
**Interview with Dennis O’Reilly: Insights on the Evolving Landscape of Work-Family Employee Benefits**
**Editor:** Today, we’re joined by Dennis O’Reilly, the lead writer of the recent MetLife report that highlights the changing expectations of employees regarding work-family benefits. Thank you for being with us, Dennis.
**Dennis O’Reilly:** Great to be here! Thanks for having me.
**Editor:** Your report indicates a significant shift in employee expectations, particularly around family benefits. Can you elaborate on why paid leave has become such a priority for employees, especially Gen Z workers?
**Dennis O’Reilly:** Absolutely. The data shows that a staggering 69% of Gen Z workers see paid leave as a “must-have” benefit. This generation values work-life balance differently than those before them. They prioritize time off not just for themselves but for family members as well, including secondary caregivers and adoptive parents. It’s essential for employers to recognize this trend; it reflects a broader societal shift toward valuing family well-being.
**Editor:** That’s a clear message. Your survey also highlighted a disconnect between what employees want and what employers are currently offering. What do you think is driving this gap?
**Dennis O’Reilly:** Many employers are still stuck in traditional mindsets about employee benefits. While they often focus on health insurance and retirement plans, they overlook the importance of family-centric benefits. It’s critical for organizations to actively engage with their employees to understand their needs better. Failing to do so could lead to losing talent, as many employees are willing to switch jobs for improved benefits.
**Editor:** Speaking of changing demands, your report also mentions the rising expectations for reproductive healthcare benefits. Can you explain what companies should consider when updating their benefits packages in this area?
**Dennis O’Reilly:** Yes, the importance of reproductive healthcare is rising sharply among younger workers. Companies should not only offer comprehensive prenatal and maternity care but also consider benefits related to fertility treatments and even supportive policies for pregnancy loss. Regulations are changing, and being proactive in this field can set a company apart as a desirable place to work.
**Editor:** Absolutely. Now, shifting gears a bit, there’s also a growing conversation around menopause and its impact in the workplace. How should employers approach this topic?
**Dennis O’Reilly:** This is indeed an important and often overlooked issue. With a significant portion of the workforce being women ages 45 to 64, companies should create supportive environments that address menopause openly, reducing stigma and providing appropriate resources. Including menopause-related benefits in health plans shows that an organization values and supports its employees throughout all stages of life.
**Editor:** Lastly, transparency in work-family benefits appears to be gaining traction. Why is this transparency important for both employees and employers?
**Dennis O’Reilly:** Transparency fosters trust and allows employees to make informed decisions when assessing potential job offers and their current positions. As pay transparency laws emerge, we need to ensure that the same level of clarity applies to benefits. Disclosing the full scope of benefits helps employees understand their compensation better and encourages companies to enhance their offerings.
**Editor:** Thank you, Dennis, for sharing your insights today. It’s clear that as we move into 2025, the importance of robust work-family employee benefits will only continue to grow.
**Dennis O’Reilly:** Thank you! It’s an exciting time for organizations to reassess how they support their employees and stay competitive in attracting top talent.