Employee benefits statistics in 2024

Employees across the United States and the world have seen a significant evolution in the workplace landscape, a wave that started during the COVID-19 pandemic and has continued influencing employee benefits in 2024. Benefits and perks are key factors in employee attraction, retention and engagement, and it is vital for your company and HR team to understand which are most valued and have the most impact on employees’ livelihoods. 

In fact, according to a Maven study, 57% of employers globally regard offering comparable benefits across all countries as a high priority.¹ Additionally, the post-pandemic focus on mental and physical well-being is showing, with 64% of employers in one study planning to enhance the benefits they offer this year.² Continue reading for more on employee benefits statistics in 2024. 

Key employee benefit statistics

We’ve researched several reputable and trustworthy sources to find these key employee benefits statistics:

• There is a significant gap between the availability of health benefits and the quality of those offered: While 94% of firms with 50 or more employees offered health benefits in 2023,⁴ only 56% of employees trust their employer to get the best quality healthcare available.¹
• Paid sick leave is available to the majority of workers, but not paid family leave: Most civilians (80%), private industry workers (78%) and state and local government workers (92%) have access to paid sick leave, according to data from 2023.¹¹ However, paid family leave is less widespread, with only 23% of union workers and 27% of non-union workers in private industries offering it as of September 2023.¹²
• Paid leave is mostly increasing and becoming more inclusive for childcare: On average, more workplaces provided childcare-related leave in 2023 than in the previous year, with 75% now offering paid parental care versus 70% in 2022. 70% offered paid adoption leave (versus 53% in 2022) and 46% offered paid foster care leave (versus 33% in 2022).²
• Flexible work is another post-COVID trend, albeit not as widely available: There is still limited flexibility in the U.S. workplace, with only 12% of full-time workers in private industries having access to a flexible workplace and 17% having access to a flexible work schedule as of September 2023.¹²
• Benefits are a key factor in attracting and retaining talent amid healthcare costs: With a significant 79% of U.S. employees expressing concern about the rising cost of healthcare, it’s little wonder that more than half of U.S. workers (57%) have taken or might take a new job if offered better family reproductive benefits.¹ 

Most common employee benefits

According to figures from the Pew Research Center, just over four in five employed workers have paid time off (PTO) for vacations, doctor’s visits and minor illnesses, making it the most common employee benefit.⁵ It was followed by:

• Employer-sponsored health insurance (79%).
• Employer-sponsored 401(k) or other retirement program (77%).
• Paid parental, family or medical leave (57%).

However, there was some variation when distinguishing between lower, middle and upper-income workers. Across the board, lower-income workers were less likely to have access to the basic employee benefits named above.⁵ For example, while 92% of upper-income and 82% of middle-income workers had access to employer-sponsored health insurance, only 60% of lower-income workers did.⁵

The same was true with all other types of basic employee benefits, showing a significant vulnerability among lower-income workers. There’s no question how valuable these benefits can be. Without fundamentals such as paid time off for doctor’s visits and illnesses as well as health insurance, many Americans face sky-high medical bills and debts or potentially severe medical conditions left improperly treated.

62% of workers said paid time off for vacations, doctor’s visits and minor illnesses is extremely important, while just over 50% of employees say the same for employer-sponsored health insurance.⁵ Other respondents said the following were important:

• An employer-sponsored 401(k) or other retirement program (44%).
• Paid parental, family or medical leave that is different from their PTO (43%).
• Respondents said if they had to rank these factors based on priority, health insurance would be the most important factor.⁵

64% of workers who took part in a Gallup survey said that when considering a new job, the most significant factor is a high increase in the amount of income they are bringing home or the value of their benefits.²⁰

Average PTO in the U.S.

U.S. Bureau of Labor Statistics research shows that the average PTO in the U.S. for private industry workers is only around seven days of sick leave per year, regardless of how long they’ve been in service with their employer.¹³ The story is similar but slightly improved for state and local government employees, who generally have 12 days of sick leave after five or more years of service but 11 after just one year of service.¹³

Contrastingly, the number of vacation days always rises the longer you’ve been at a company, but state and local government employees still see more time off on average. After a year of service, private industry employees can expect 11 days of paid vacation, compared to 13 for state and local government employees¹³. This rises to:

• 15 days (private industry employees) and 16 days (state and local government employees) after five years.
• 18 days (private) and 19 days (state and local government) after 10 years.
• 20 days (private) and 22 days (state and local government) after 20 years.¹³

According to GoCity, 45% of Americans used all their PTO in 2022.⁶ Despite this, it takes time for Americans to reach the number of PTO days that match what they need and want.

The 2023 figures from GoCity show that the ideal number of PTO days is 28 days. 86% of Americans wished they had more time off than they currently do.⁶ Just under a third of workers plan their PTO days out at the start of the year, but fewer than half used their entire allocated days off in 2022.⁶ The same report suggested that while one in four employees would like an unlimited time off policy, only around 8% of workers currently have one.⁶

When it comes to taking vacations, workers in America don’t take a lot of time off. According to a study done by Expedia, the average U.S. worker only used 11 vacation days in 2022.¹⁵ That study also shows that:

• 63% of working adults in the U.S. felt vacation deprivation in 2023.
• The U.S., along with Mexico and Singapore, were given the least number of vacation days and took the least number of vacation days in 2022.
• When looking at the generational gap, 43% of baby boomers felt this vacation deprivation, while 73% of Gen Z felt it.
• Around 58% of Americans felt like they couldn’t take vacation time because their industry or company was facing staff shortages.
• Around 72% of American workers (the third-highest percentage) wish their employers would change their time-off policies.¹⁵

Unlimited PTO statistics

Analysis from Mercer shows that just over a quarter of employers offer unlimited PTO to at least a portion of their employees, although only 6% offer it to all.² However, despite the apparent reluctance of many employers to offer such a model, the majority (72%) who did offer it in 2021 reported that employees took the same amount of time off as under their prior “accrued” policy.²

Responses to unlimited time off policies are overwhelmingly positive, with 88% of respondents in a Glassdoor survey speaking favorably about them.⁷ This study also found that employee reviews mentioning unlimited PTO policies went up 75% compared to pre-pandemic times.⁷

According to Bloomberg’s Markets Live Pulse Survey, the majority of employers who have unlimited PTO policies (72%) said that employees still took the same amount of time off that they did under the previous policy.¹⁰ Despite this, the survey found that if employees had unlimited PTO, they would take the following amount of days:

• Ten days or less: 9%.
• 11 to 20 days: 32%.
• 21 to 30 days: 39%.
• More than 30 days: 20%.¹⁰ 

From the same survey, fewer than a fifth of respondents believe that unlimited time off policies will gain the most traction going forward.¹⁰ 55% of respondents believe that the four-day work week will become more normal, with 20% thinking sabbaticals will gain traction and 18% thinking unlimited PTO will.¹⁰ 82% of U.S. workers are wanting a four-day work week at their companies.

Despite all of this, a study from the Pew Research Center showed that, even if employees have vacation time available, they might not take it. Almost half of the respondents said they normally take less time off than is offered by their employer.⁵ The organization also found that:

• Around 52% of respondents don’t feel like they need to take more time off.
• 49% of respondents worry that if they take more time, they will fall behind on tasks.
• Nearly 43% said they would feel bad if their co-workers had to take on more work for them to be able to take time off.
• 19% believe if they take too much time, it will hurt their chances of getting promoted.
• 16% believe they might risk their job if they take time off.
• 12% said their manager discourages taking time off.⁵

Paid sick leave

Research from the U.S. Bureau of Labor Statistics in 2023 shows that 86% of union workers in private industry had access to paid sick leave, compared to 77% of non-union workers.¹² In total, 78% of private industry workers have paid sick leave available, fewer than civilians (80% of which have access to paid sick leave) and state and local government employees (92%).¹¹

Only 16 locations in the U.S. mandate paid leave for serious health conditions or disabilities.³ These include:

• California
• Colorado
• Connecticut
• Delaware
• Hawaii
• Maine
• Maryland
• Massachusetts
• Minnesota
• New Jersey
• New York
• Oregon
• Puerto Rico
• Rhode Island
• Washington
• Washington, D.C. 

Paid holiday leave

Data show that 92% of union workers had access to paid holiday leave, while 79% of nonunion workers had access to paid holiday leave. This is in contrast to the 56% of union workers who had access to paid personal leave and 45% of nonunion workers who had access to paid personal leave.

When it comes to paid holiday leave, 79% of civilian workers, 80% of private industry workers and 67% of state and local government employees had access.¹¹ When comparing this to paid vacation leave, 77% of civilian workers, 79% of private industry workers and 60% of state and local government employees had access to paid vacation leave.¹¹ This shows that paid holiday leave is a bit more accessible than paid personal leave and paid vacation leave.

Maternity leave statistics

The U.S. Bureau of Labor Statistics data also shows that paid family leave — like maternity leave — was only available to around 27% of private industry workers, with 23% of those in a union and 27% of non-union employees.¹² This was roughly the same for civilian workers (27%) and state and local government employees (28%).¹²

Mercer figures suggest that parental leave policies are becoming more popular and are broadening to be more inclusive. The number of employers offering paid parental leave grew to 75% in 2023 (including those planning for 2024), while 70% also offer paid adoption leave (compared to 53% in 2022 and planning for 2023).²

 The growth in paid parental leave made the median number of paid weeks off for birth parents increase to seven weeks.

According to the same study from Mercer, the average number of paid weeks off is six for paid adoption leave and foster child leave and eight for paid surrogacy leave. Despite this, not all employers offer these benefits. For example, only 25% of employers plan to or are offering paid surrogacy leave in 2024, which is down 2% from 2023. But paid foster child leave is at 46%, up from 33%.²

46% of employers offered paid foster child leave compared to 33% in the previous year. However, the number of employers offering paid surrogacy leave actually fell from 27% to 25%.

The majority of employers with over 500 employees (54%) plan to offer no childcare benefits in 2024, according to Mercer’s data.² 39% of employers with over 5,000 employees either do or will plan to offer childcare referral/consultations, while 37% will offer access to backup childcare services. 40% of these employers will offer no childcare benefits or resources.

FMLA statistics

As of January 2024, several states and jurisdictions require paid family leave to bond with a new child, care for seriously ill or injured family members and handle other specific matters. These include California, Colorado, Connecticut, Delaware, Maine, Maryland, Massachusetts, Minnesota, New Jersey, New York, Oregon, Rhode Island, Washington and Washington, D.C.

Despite some common elements, differences in laws between states make compliance and administration challenging for employers who have employees in multiple states.

Two states — New Hampshire and Vermont — have created voluntary paid family and medical leave programs for employees.¹⁷ Six states also allow life and disability insurers to write group family leave insurance policies, which can be available to employers. These states include Alabama, Arkansas, Florida, Tennessee, Texas and Virginia.¹⁷

Flexible work statistics

Following the COVID-19 pandemic and the ensuing months of remote/hybrid working, flexible office and home setups are an example of a long-lasting lockdown legacy. However, numbers from the U.S. Bureau of Labor Statistics show that fewer than one-fifth of full-time workers in private industries had a flexible work setup, and this was even fewer for part-time workers.¹²

In fact, only 2% of part-time workers had access to any kind of flexible workplace, and 13% could have a flexible work schedule.¹² This is supported by research from Maven that shows 91% of respondents to its survey have to work in person at least some of the time.¹

However, people who support flexible working believe that employers can attract more talented employees. According to Bloomberg’s Markets Live Pulse Survey, 64% of the 1,061 total respondents said that companies that offer flexible working options will do better than the S&P 500.¹⁰

Data from the U.S. Bureau of Labor Statistics also showed that:¹²

• 4% of union workers and 17% of nonunion workers could have a flexible work schedule.
• 1% of union workers and 10% of nonunion workers could have a flexible workspace.
• 75% of union workers and 52% of nonunion workers could utilize employee assistance programs.

Employee health benefits statistics

Research from the Kaiser Family Foundation (KFF) shows that the vast majority of firms with 50 or more employees offered health benefits in 2023 and have done so for the last decade.⁴ Just under four in five employees at firms that offer coverage are eligible, and among these employees, 75% take out this coverage.⁴ However, U.S. Bureau of Labor Statistics data highlights inequalities between full-time and part-time workers as well as unionized and non-unionized workers.

Census Bureau data shows that between 2021 and 2022, the number of people who had health insurance for at least some of the year grew from 91.7% to 92.1% — and the majority had private coverage (65.6%) rather than public (36.1%).¹⁴ Most people who had health insurance also got it through their employers (54.5%), while Medicaid (18.8%) and Medicare (18.7%) were the second and third-most common sources of coverage.¹⁴

What percentage of employers offer health insurance?

Out of all private industry workers, 87% of full-time workers had access to medical care benefits compared to 25% of part-time workers, and 96% of union workers had access compared to 69% of non-union workers.¹² Out of unionized workers in private industries, employers paid 80% of premiums for single coverage plans and 79% for family coverage plans, compared to 78% and 65%, respectively, for non-union workers.¹²

It was also found that:²

• 15% of employers offer free, employee-only coverage for at least one medical plan.
• 18% use salary-based contributions.
• 39% offer medical plans with no deductibles or low deductibles.
• 6% make larger HSA contributions to those who make lower salaries.

What percent of health insurance is paid by employers?

When it comes to the cost of these benefits, the average monthly premium paid by employers was $676.71 for single coverage and $1,547.50 for family coverage for medical insurance, according to the U.S. Bureau of Labor Statistics.¹²

With private industry workers that are part of the union, the employer’s share of the premium was 80% for single coverage and 79% for family coverage. For nonunion workers, those percentages were 78% and 65%, respectively.¹²

Family planning benefits

Many employees highly value benefits associated with family planning, with 57% of respondents in a Maven study saying they have taken or might take a new job for improved reproductive and family benefits.¹ Research from Mercer shows that employers are responding to this — 46% of employers in its study will offer benefits that cover high-risk pregnancy, lactation, preconception family planning, postpartum care, pregnancy loss and menopause.²

Additionally, Maven’s statistics show that 62% of companies offer paid parental leave beyond statutory minimums, while 50% offer maternity support during pregnancy and postpartum. Less than a quarter offer benefits to cover menopause support, while 39% offer childcare support.¹

Data from Mercer also shows that employers are trying to provide more diverse coverage needs.² They are slowly taking steps toward offering some of the following coverages:

• Family-building benefits (41%).
• Doulas, midwives and birthing centers — or other options to improve outcomes of pregnancies (23%).
• Hearing aids (49%).²

Retirement plan and pension statistics

The overwhelming majority of unionized workers in private industries in the U.S. had access to retirement benefits (94%), while comparatively fewer non-unionized workers (68%) enjoyed the same in March of 2023.¹²

Private industry workers, in general, had the most access to defined contribution retirement plans in 2023 (76%), while only 63% of civilian workers and 39% of state and local government workers did.

Life insurance

Out of private industry workers, more unionized employees had access to life insurance plans (86% compared to 55%), short-term disability plans (73% versus 41%) and long-term disability plans (44% versus 35%) than non-unionized workers.¹²

However, research from Guardian shows that over half of employers that offer life insurance only provide group coverage equal to or less than the employee’s salary, while only 2% offer more than twice the employee’s salary’s worth in coverage.⁸

How benefits affect employee retention

Business owners need to consider how benefits can affect employee retention and satisfaction. Three-quarters of employers reference reproductive and family benefits as important or very important in this regard, according to Maven’s survey.¹ Data shows that 30% of employers select benefits that give you a return-on-investment guarantee. Then, 22% of employers choose providers based on clinical outcomes.¹

Additionally, more than a third of white-collar workers responded to our remote work survey to say they’d look for a new job if their current employer stopped offering remote work. To further indicate the importance of healthcare benefits, almost four in five U.S.-based employees are concerned or very concerned about the rising cost of healthcare, according to Maven’s study.¹

How much do benefits cost per employee

According to data from the U.S. Census Bureau of Labor Statistics, the average cost for vacation leave for civilians and private industry workers was $1.59 per employee per hour. With state and local government employees, that cost was raised to $1.63 per employee per hour. For holiday, sick and personal leave, those numbers looked like this:

• Holiday leave: $0.96 for civilians, $0.92 for private industry workers and $1.27 for state and local government employees.
• Sick leave: $0.50 for civilians, $0.40 for private industry workers and $1.13 for state and local government employees.
• Personal leave: $0.20 for civilians, $0.18 for private industry workers and $0.35 for state and local government employees.

In 2023, employers expected an increase as inflation made healthcare costs rise.¹⁸ 

Employee benefits trends

Our research of reputable sources, like the U.S. Census Bureau and Bloomberg, showed many trends and data surrounding employee benefits.

Here are a few more selected trends in employee benefits to look out for in 2024:

• Wellness: Almost two-thirds of employers plan to enhance their health and wellbeing benefits in 2024. 63% of state and local government employees had access to wellness programs, more than civilian employees (46%) and private industry employees (43%).
• Pawternity: Despite some fanfare in the press, only 3% of major employers offer “pawternity” paid time off policies, although this climbs to 7% when looking at large service industry employers.²
• Juneteenth: Juneteenth is the anniversary of when the Emancipation Proclamation was enacted for enslaved people in Galveston Bay, Texas — two years after it had actually been signed.¹⁹ Only 9% of respondents to Mercer’s 2021 Absence and Disability Management Survey offered Juneteenth as a paid holiday, but since it was declared a federal holiday, that has risen to 39%.
• Behavioral healthcare: While 69% of employers have enhanced or expanded their employee assistance programs, 84% of them said it had been effective.² Only 19% took steps to increase screenings for mental health and/or substance abuse, although 91% of those said it had been effective.² The most effective action taken, proportionally speaking, was adding a supplemental network for virtual or in-person care, with 69% saying it had been effective or very effective.²
• Virtual care: A Mercer survey revealed that around half of employers are actively working to expand the use of virtual care, with 38% saying they rely on their medical plans for this.²

Our research found many facts about employee benefits. We found that paid sick leave is available to the majority of workers in the U.S. However, paid family leave is not, according to data from the U.S. Bureau of Labor Statistics. While 78% of private industry workers have access to paid sick leave, only around 23% of union workers and 27% of non-union workers have access to paid family leave in private industries.¹¹

Overall, it is clear that quality benefits are a key factor in attracting talent and retaining employees. In a Maven study, 79% of U.S. employees expressed concern about rising healthcare costs. More than half of those same workers said they had taken a new job or might take a new job for better family reproductive benefits.¹

Sources

1. Maven - Maven’s State of Women’s & Family Health Benefits.
2. Mercer - Health & Benefit Strategies for 2024 Survey Report.
3. Mercer - 2024 state paid family and medical leave contributions and benefits.
4. Kaiser Family Foundation - 2023 Employer Health Benefits Survey.
5. Pew Research Center - How Americans View Their Jobs.
6. Go City - Workcations in 2023: How Americans Are Using Their Vacation Time.
7. Glassdoor - Why your company’s unlimited PTO isn’t working (and how to fix it).
8. Guardian - Prepared and Protected.
9. Bloomberg - Work Shift: Here’s How to Take Advantage of Unlimited PTO.
10. Bloomberg - Companies That Offer Unlimited Vacations Will Outperform S&P 500, Investors Say.
11. U.S. Bureau of Labor Statistics - Employee Benefits: EBS Latest Numbers.
12. U.S. Bureau of Labor Statistics - Employee Benefits in the United States Summary.
13. U.S. Bureau of Labor Statistics - Paid leave benefits: Average number of sick and vacation days by length of service requirement.
14. U.S. Census Bureau - Health Insurance Coverage in the United States: 2022.
15. Expedia - Vacation Deprivation Report 2023.
16. Joblist - How Do Unlimited Vacation Policies Affect Employees? Over 1,000 Employees Weigh In.
17. Disability Management Employer Coalition - Family Leave Insurance: Integrating More Equity Into Employer Paid Leaves.
18. U.S. Bureau of Labor Statistics - Employer Costs for Employee Compensation.
19. National Museum of African American History & Culture - The Historical Legacy of Juneteenth.
20. Gallup - The Top 6 Things Employees Want in Their Next Job.