Dive Brief:
- Eighty-two percent of more than 200 executive benefits decision-makers said executive benefits are strategically important to their overall company success, according to the 2024 U.S. Executive Compensation and Benefits Trend Report released Sept. 9 by NFP, a property and casualty broker.
- Of those surveyed, 61% said retention has been a top factor shaping executive benefits decisions in the past year, and 71% said retaining those workers will have “a significant impact” on benefits decisions in the years ahead.
- “Regardless of company size or industry, teams are less likely to reach their potential if they lack exceptional leadership. Our findings show that comprehensive benefits packages are key to providing the financial incentives needed to attract, retain and reward top talent and put employers on the path to success,” Tony Greene, president of NFP’s executive benefits division, said in a statement.
Dive Insight:
Despite the role executive benefits play in retaining workers, NFP’s data showed that only 29% of respondents said they fully understood their benefits.
“There’s a clear need for improved communication,” Greene said. “Employers should enhance their outreach and education to ensure executives fully grasp and appreciate the value of their benefits, particularly complex offerings.”
Companies are offering nonqualified deferred compensation plans, performance-based incentives, supplemental executive life insurance and first-class air travel as part of their executive benefits packages, the report found.
June research from WTW found that a large majority of U.S. employees — not just executives — are choosing to stay with their current employer and cited pay, health benefits and flexible work arrangements as some of the reasons why.