Where are total rewards headed in 2024? HR leaders weigh in.

mGoing into 2023, the majority (89%) of HR professionals said improving total rewards was a top priority, according to a Mercer survey. Even as wage growth slowed this year, companies continued to invest in new perks and benefits, from menopause care to pet insurance.

Next year, people leaders told HR Brew via email that they expect to see companies tailor benefits to the unique needs of their workforce, as well as home in on caregiving and financial wellness perks.

Here are six trends to watch for.

Flexibility and benefits unique to one’s workforce. “At Deloitte, we recognize that benefits packages should be as unique as our diverse workforce. We believe other employers will begin to adopt this same sentiment. It means focusing less on simply benchmarking against competitors and more on asking the workforce what they value. It also means creating opportunities for flexibility and customization in how employees’ access, understand, and utilize the benefits and perks available to them, in many cases through the usage of rewards technology and dynamic portal solutions.”—Melanie Langsett, a principal in Deloitte’s human consulting practice

Caregiver benefits. “We should expect to see a continued and potentially greater emphasis on childcare benefits and access to elder care or caregiving services. The costs of these services continue[s] to rise, and beyond the financial implications, these needs also have an impact on worker availability and productivity…Companies will likely continue to seek alternatives to support their employees through these life stages while also providing access to programs that will be important for their employees’ long-term life planning.”—Whitney Woodward, chief people officer at employment agency Employbridge

“I anticipate the industry will continue to see an upward trend in family care benefits next year, further cementing themselves as a must-have in any employee benefits package…Notably found in our 2023 Future of Benefits Report was 80% of HR leaders attributing childcare benefits to enhanced productivity and 78% seeing a correlation with talent retention and significant positive impact reported on productivity (84%) and talent retention (81%) for senior care benefits as well.”—Wes Burke, CHRO of Care.com

Compensation data. “2024 is poised to witness a surge in the use of ‘real-time’ compensation benchmarking data. Gone are the days of pulling compensation data into Excel, compiling and submitting spreadsheets, and waiting until the next calendar year to gain insights into the market demand for each position…Of course, in order for the benchmarking data to be accurate, HR/people and culture leaders will need to invest effort upfront to ensure accurate benchmarking of their positions, guaranteeing the precision of the corresponding data.”—Kat Campbell, founder of people and culture consultancy firm HowardHelen

Gamification. “In 2024, expect to see more frequent rewards resulting from competition or on gamification. We also hope to see employers invest more in rewards that result in more available leave time or experiential rewards, such as international trips or outdoor adventures. These would be especially attractive to an organization with Gen Z talent. I don’t anticipate that we’ll see a departure from tried-and-true longevity and performance-based equity awards.”—Bob Ellis, global practice head of talent and organization at Infosys Consulting

Financial wellness. “Over the course of 2023, we’ve seen an uptick in employment trends like ‘quiet quitting’ and ‘rage applying’ due to a lack of support within the workplace. By recognizing financial benefits have a strong influence on employees, it’s imperative for employers to pay attention to what financial support their workforce is looking for (like access to a 401k or a financial advisor) and to ensure their employees are engaging with the benefits that are available. This will reduce the potential for employees deciding to jump ship next year.”—Harlyn Croland, head of business operations and strategy for Betterment at Work, a financial advisory company.

Well-being. “A significant area of focus for 2024 will be benefits for employees that support overall well-being. Similar to 2023, mental health, well-being, and physical health remain at the forefront due to our acclimation to a post-pandemic world…We have learned that employees seek shared networks of support in managing the well-being of not only themselves but also their families. Both in-person and virtual solutions, expanding beyond the traditional employee assistance program (EAP) services, will be important.”—Burgette White, VP of HR at staffing firm Adecco North America