People on a chart

Trends in compensation and benefits package design continue to reflect employers’ difficulties in attracting enough warm bodies to get the work done. A recent survey of more than 4,000 organizations reveals that this year, employers are sweetening compensation while tending to leave well enough alone when it comes to plan design.

The 2022 Workforce Trends Report: Physical & Emotional Wellbeing, by the consulting firm Gallagher, suggests that the majority of employers, large and small, are reluctant to continue the benefits strategy of cost-sharing that had taken root prior to the pandemic. Instead, they are either standing pat with benefits, or finding more creative ways to configure their package to make it more attractive to employees. Meantime, they are boosting compensation as a quick fix to lure new talent and retain existing staff.

The survey found that 78% of respondents are enhancing base pay, up 6% from last year. Enhancing medical benefits remained a top priority–but only for 33% of respondents. In the 2021 survey, 55% cited it as the top priority.

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