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  1. Press Room
  2. SHRM Releases 2022 Employee Benefits Survey
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SHRM Releases 2022 Employee Benefits Survey

Healthcare, Retirement Savings and Leave Benefits Emerge as the Top-Ranked Benefits Employers Feel They Can Offer

June 12, 2022



​New Orleans— Employers offering mental health coverage in 2022 hit a new high of 91 percent since the COVID-19 pandemic.  Benefits such as mental health coverage, telemedicine, telehealth showed upward movement, according to SHRM's latest Employee Benefits Survey released today.

Healthcare emerged as the leader in ranked importance by employers as the most important type of benefit that an organization can offer its workers followed by retirement and leave benefits, which ranked jointly at number two. Retirement benefits were at 55 percent in 2020/21, back up to 82 percent in 2022.  Although the importance ratings of many benefits changed drastically during the height of the pandemic, now that businesses have regained a more normal semblance of operations, so too have businesses ranked benefits in a more typical order of importance.  Although this order of importance is back to what was typically seen prior to the pandemic, it is key to note that all benefits are now individually viewed as more important for businesses to offer than they were prior to the pandemic. The pandemic's impact on the world of work appears to have resulted in lasting changes of the views around specific benefits offerings.

For example:

  • Flexible work benefits were at 49 percent in 2019, 83 percent during the pandemic when many workers were required to work remotely and have now settled at 70 percent in 2022.
  • 65 percent of employers thought that professional career development benefits were important now compared to 37 percent in 2020/2021 and 51percent prior to the pandemic.
  • Family care benefits were viewed by 70 percent of employers as being important to offer, down from 76 percent during the pandemic when they became increasingly important, but up from 52 percent prior to the pandemic. 

 
"Employer-offered benefits provide organizations with a key opportunity to improve the employee experience and directly make a difference in their employees' lives," said SHRM Chief Knowledge Officer Alex Alonso, Ph.D., SHRM-SCP. "The COVID-19 pandemic and its lasting impacts on economic and public health have expedited the evolving nature of organizations, many of which now have access to wider talent pools through the possibility of remote work. Workers now have more options for where and when they will work, and these two factors together create a challenging talent landscape for organizations everywhere. These benefits can play an instrumental role in this competition for talent and, in some cases, may determine success or failure".

SHRM 2022 Employee Benefits Report Highlights: 

Health Care Benefits: 

  • 93 percent of organizations indicated that they offer telemedicine or telehealth as a benefit to their workers, up 20 percentage points since 2019.
  • 1 in 5 employers offer mental health days above and beyond regular sick leave.
  • Nearly all organizations (98 percent) offer some type of health coverage, with three-quarters (72 percent) of organizations saying they offer a fully insured health plan and 26 percent saying they offer a self-insured plan.
  • Medical flexible spending accounts (FSAs) and health savings accounts (HSAs) continued to be the most popular type of health-related spending accounts, with 63 percent and 57 percent of employers offering them, respectively.
  • Nearly two-thirds (63 percent) of organizations that offer an HSA said they make employer contributions to these plans, which is the lowest prevalence since 2018, when 64 percent said they offered this benefit.

Retirement and Savings:

  • 82 percent selected retirement and savings as an important benefit. Up 27 percent from 2020/21,employers ranked retirement and savings benefits as among the most important types of benefits they can offer employees. Employers still strongly believe in the importance of retirement and savings benefits.
  • In 2022, most employers offered some type of retirement savings plan to their employees, with 94 percent offering a traditional 401(k) and 68 percent offering a Roth 401(k).
  • Many of those employers also provided some type of employer match to those retirement plans, with 83 percent contributing to traditional 401(k) plans and 76 percent contributing to Roth 401(k) plans.
  • On average, employers provided a maximum percentage salary match of 6.8 percent for traditional 401(k) plans and 6.7 percent for Roth 401(k) plans.
  • Just over half (51 percent) of organizations said they automatically enroll new or existing employees in their company's retirement plan—a figure that has held steady since the onset of the COVID-19 pandemic.

Leave:

  • 82 percent selected leave benefits as very important.
  • Leave benefits remained among the top-ranked benefits that employers felt an organization should offer, even after the initial adjustment to the onset of the COVID-19 pandemic.
  • Despite ranking highly, leave for new parents (beyond what is required by law) returned to pre-pandemic levels of prevalence after all the different types of leave reached their highest prevalence in 2020. Organizations offering paid maternity leave dropped to 35 percent (from 53 percent in 2020) and the number offering paid paternity leave dropped to 27 percent (from 44 percent).
  • The number of organizations offering paid adoption leave dropped to 28 percent (from 36 percent) and the number offering paid foster child leave dropped to 22 percent (from 28 percent). Employers seem to be dialing back on expanded parental leave opportunities since returning back to more normal operations.

Other types of leave:

  • Nearly all employers offered paid vacation leave (99 percent) or paid sick leave (96 percent), with two-thirds (67 percent) indicating they offered a bank of paid time off (PTO) covering both vacation and sick time.
  • Paid open or unlimited leave continued to be rarely offered, with only (6 percent) indicating they offered this benefit.
  • In addition, (20 percent) of organizations said they offered paid mental health days separate from regular sick leave.

Family Care:

  • Over half of organizations (59 percent) said they offer a dependent care flexible spending account, which allows employees to save funds directly for expenses related to caregiving.
  • Additionally, 31 percent of organizations said they would allow employees to bring children to work in an emergency as a benefit.

Flexible Work:

  • 63 percent of employers said they offer most of their workers the opportunity to adopt a hybrid work model, which involves a combination of working both remotely and in person.
  • Across all organizations, 62 percent said they offer employees a subsidy or reimbursement for at-home office or work equipment. On average, these employers provided about $891 to employees to cover costs related to working from home.
  • Over two-thirds (68 percent) of employers offering a subsidy or reimbursement said they cover costs related to general office supplies like pens or notepads, and 24 percent said they cover the cost of chairs for employees working from home.

Professional Development:

  • 78 percent of employers cover opportunities to develop new skills, up from 75 percent in 2021.
  • The number of employers who felt professional development benefits were important to offer grew to 65 percent in 2022.
  • 48 percent of employers indicated they offer undergraduate or graduate tuition assistance as a benefit.


Methodology: 
 
The 2022 SHRM Employee Benefits Survey was conducted from January 11 to February 28, 2022. Online surveys were sent to U.S. based professional members of SHRM, which yielded eligible responses from 3,129 participants representing independent organizations. Respondents were asked to provide answers regarding what employee benefits their organizations offered during plan year 2022. A stratified sampling approach was used to ensure coverage of all locations (including states) in the online benchmarking tool. Respondents represent organizations of all sizes—from two employees to more than 25,000—in a wide variety of industries and sectors across the United States. The data is unweighted.

This year, SHRM prepared the survey's results in a new way and will be providing exclusive access to SHRM members to explore the full survey results online at shrm.org/benefits. The executive summary can be accessed by the media here

The SHRM 2022 Employee Benefits results are being released during SHRM's Annual Conference & Exposition in New Orleans.
 
Media: To request an interview, contact Eddie Burke of SHRM Media Relations at Edward.burke@shrm.org and (202) 321 5026  or Mallory Flynn at Mallory.Flynn@shrm.org and (828) 925 0387.

About SHRM 

SHRM, the Society for Human Resource Management, creates better workplaces where employers and employees thrive together. As the voice of all things work, workers and the workplace, SHRM is the foremost expert, convener and thought leader on issues impacting today's evolving workplaces. More than 95percent of Fortune 500 companies rely on SHRM to be their go-to resource for all things work and their business partner in creating next-generation workplaces. With 300,000+ HR and business executive members in 165 countries, SHRM impacts the lives of more than 115 million workers and families globally. Learn more at SHRM.org and on Twitter @SHRM.

 



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