A Look Into the Landscape (and Future) of Lifestyle Benefits
Our benchmark reports are probably my favorite thing to work on here at Compt. To create the report, I get to team up with our Customer Success team throughout the year to really dig into how companies and their employees are using Compt to make the most of their lifestyle benefits and stipends.
Our latest report, the Mid-Year Lifestyle Benefits Benchmark Report [2024], gave me an exciting glimpse into what employees want most, based on real-time data from our customers.
We analyzed companies across the spectrum, from startups to global publicly traded companies, to bring you data on how innovative companies (that employees love) are enhancing their compensation strategies through lifestyle benefits.
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Check out the newest Lifestyle Benefits Benchmark report [2024] to get a closer look at what employees want most.
A Few Things I Learned:
There’s a growing demand for more financial wellness support.
As cost of living increases and general inflation is hitting everyone, everywhere, all eyes are on how to make the most of every dollar (or country-specific currency!). While employers are looking to manage costs, employees are looking for companies that will support them as they struggle with the rising cost of living. Our report shows a clear emergence in vendors who can support financial wellness programs, including student loan repayments or everyday financial help.
Self-care is on the rise.
While the basics, such as groceries and housing expenses are still top of mind, with the consumer price index rising 3.1% this year, you also need to take care of more individualized needs. That’s why Compt introduced a new category last year called Treat Yourself, which can cover anything from a Starbucks coffee to a fresh pedicure. We’ve seen it become one of our top three stipend categories:
1. Food (18%)
2. Health & Wellness (17%)
3. Treat Yourself (13%)
The return of professional development.
After taking a backseat during the pandemic, professional development is making a strong comeback. Forward-thinking companies are investing in their employees’ growth, understanding that a skilled and engaged workforce is crucial for long-term success.
Health and wellness (still) reign supreme.
Wellness is a broad category, but it’s also critical, no matter what stage you are in life. That’s likely one of the reasons it remains our top category for stipends, with employees reimbursing for things like kickboxing, Oura Rings, health supplements, or the latest Fitbit. Companies that prioritize these categories are seeing improvements in employee satisfaction, productivity, and overall workplace culture.
Choice matters.
No surprises that the top three vendors reimbursed are at Amazon, Walmart, and Kroger as we know that these behemoth companies can support so many different kinds of purchases. What I love seeing the most is the huge variety of other vendors that make up over 70% of the spending.
This shows that stipends and lifestyle benefits can support businesses of all sizes, from local mom-and-pop shops to specialty retailers.
Because the employee is in control of where they reimburse their funds from, they have the ultimate choice in where they want to buy. From health and wellness to professional development, workers are seeking benefits that align with their personal goals and lifestyles.
What Can Leaders Do Next?
As we move into the latter half of 2024 and beyond, here’s what business leaders can focus on:
1. Embrace flexibility: This is clear: One-size-fits-all benefit packages are no longer working. Instead, employers should consider implementing a flexible benefits program that allows employees to choose what matters most to them, which is what a lifestyle benefits platform like Compt can easily provide.
Learn more about the Compt Lifestyle Benefits Platform »
2. Prioritize wellness: Make holistic well-being central to your benefits strategy. This includes physical, mental, and financial health.
3. Grow your people: Don’t overlook the importance of professional development. Employees value opportunities to learn and grow within their roles, and more importantly, they’re looking for employers to be their guide for these opportunities.
4. Open the door to feedback: Get your people talking about what they want and need in their benefits program outside of the critical, but rather cut-and-dry, healthcare stuff. By understanding the data behind benefits usage and what your people truly want, you can refine and improve your offerings over time.
5. Think beyond the paycheck: While competitive — and equal— compensation is (always) important, thoughtfully designed benefits programs can have a significant impact on employee satisfaction and retention even with smaller budgets.
Curious to know more? Get insights on what employees want most and how they’re using their lifestyle benefit stipends in our comprehensive Mid-Year Lifestyle Benefits Benchmark Report [2024].
