Employee Benefits
The SHRM Employee Benefits Survey returns with new insights for 2023.
Health Care Comes First
On the tail end of a pandemic and amid rising medical costs, health care remains the most important benefit type that employers feel they can offer to their workforce. Facing reminders of the difficulties during the COVID-19 pandemic, organizations continue demonstrating caution and concern for employees’ well-being. This is likely to continue for the foreseeable future.
Health insurance is not employers’ only concern, however, as differentiation in other health benefits may come with added perks to boost recruitment and retention efforts. The prevalence of health savings accounts (HSAs) has reached a historic high. Meanwhile, employers are paying close attention to various reproductive benefits their employees may value. On the wellness side, organizations are starting to reinstate lifestyle perks and further encourage healthy habits, with data showing a slight rebound from the pandemic-recovery dip in 2022.
Continue below to explore health-related benefits and what organizations like yours are offering.
How Do Your Benefits Stack Up?
Use the tool below to explore benefit categories by industry, organization size or location
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71%
of organizations offer a fully insured health plan, meaning the organization pays a fixed premium amount to an insurer, which then pays the medical claims.
27%
of organizations offer a self-insured health plan, meaning the organization operates its own health plans and typically pays medical claims through a third party.
Telemedicine and Telehealth
Although the number of organizations offering telemedicine or telehealth has decreased slightly compared to last year, this benefit remains extremely common at 90%, indicating it is an important component of overall health care offerings.
Health Savings/Spending Accounts
Medical Flexible Spending Account (FSA)
FSA Run-Out Period
32%
FSA Carryover Provision
32%
FSA Grace Period
22%
Health Savings Account (HSA)
Organizations that contribute to plan
63%
Average individual-only annual contribution:
$1,012
Average family annual contribution
$1,585
Health Reimbursement Arrangement (HRA)
Average individual-only annual contribution:
$2,017
Average family annual contribution
$3,495
Short-Term Disability (STD)
67% of organizations offer short-term disability insurance beyond any state-required programs.
The percentage of organizations offering short-term disability insurance increased by 1 percentage point between 2022 and 2023 and by 5 percentage points since 2019. Supplemental short-term disability insurance followed suit since last measured in 2022, increasing 2 percentage points to 49%. These increases could be related to an uptick in employees missing work due to illness during the pandemic. Post-pandemic, employers may be taking proactive steps to ensure their workers have the best coverage available to handle unforeseen circumstances.
Long-Term Disability (LTD)
71% of organizations offer long-term disability insurance.
The prevalence of long-term disability insurance has remained consistent, varying by only 1 percentage point over the past five years. Supplemental long-term disability insurance increased 2 percentage points over last year, to 44%. This may show that employers consistently want to ensure their employees have the ability to retain an income when facing long-term health issues.
Accidental Death and Dismemberment (AD&D)
79% of organizations offer AD&D insurance.
Accidental death and dismemberment insurance prevalence remained unchanged compared to 2022, while supplemental AD&D insurance increased 1 percentage point to 60%. These are both below pre-pandemic levels, and it’s possible they may have stabilized around these new prevalence figures.
Additional Health Coverage
Additional health coverage was again highly prevalent in 2023. Dental insurance, as well as prescription drug coverage bundled with medical insurance, did not change year over year. However, vision insurance saw its highest prevalence in at least five years.
Dental Insurance
Vision Insurance
Prescription Coverage
Mental Wellness
Mental Health Coverage
89%
Employee Assistance Program (EAP)
81%
General Wellness Program
44%
Meditation/Mindfulness/Contemplative Program
19%
Online Stress Management Program
21%
Employers have become more attuned to the impact employees’ mental health concerns can have on the workplace. With the challenges of the COVID-19 pandemic still a recent memory and economic difficulties causing increased stress, many employees are dealing with anxiety, depression and burnout. In providing workers with comprehensive mental health and wellness benefits, employers are showing their commitment to fostering a more positive work environment that improves both workplace culture and overall employee engagement.
Reproductive Care
Contraceptive Coverage
In Vitro Fertilization Coverage
Infertility Treatment Coverage
