The Hawaii Employers Council (HEC) has released its 2024 Employee Benefit Plans Survey, revealing pivotal insights into the current landscape of employee benefits in Hawaii. As employers prepare for 2025, understanding these trends is crucial for tackling recruiting and retention challenges. Here are some key takeaways from the survey that underscore the shifting priorities and strategies of Hawaii’s employers.
Cost of Benefits
The cost of employer-sponsored health plans continues to rise. According to Mercer’s National Survey, health benefit costs increased by 5.2% nationally, with small employers bearing the brunt. In Hawaii, the benefits-to-payroll cost ratio slightly decreased to 37.4% in 2024, indicating a cautious approach to managing expenses.
Employee Priorities and Benefits
Amid rising costs of living and global uncertainties, 72% of employees now prefer to stay with their current employers, a significant jump from 2022 where 53% were choosing to leave. This trend highlights the importance of tailored benefits. In Hawaii, turnover rates have improved, dropping to 18.3% in 2023 from 19.8% in 2022.
Medical Coverage
- Fully Insured Plans: 93.1% of respondents offer fully insured medical plans, a slight decrease from 94.0% in 2021.
- Employee Coverage: 65.3% cover 100% of employee-only medical premiums, down from 67.7% in 2021.
- Dependent Coverage: 86.8% offer coverage for dependents, with 36.8% covering at least 50% of premiums.
Additional Health Benefits
- Prescription Coverage: Almost all employers (99.3%) provide prescription drug plans.
- Vision and Dental: 100% offer vision and dental plans, with nearly half covering the full premium costs for vision and 60.4% for dental.
- Evolving Benefits Landscape
- Retiree Coverage: Only 10.4% of employers offer retiree medical coverage, continuing a downward trend.
- Employee Assistance Programs (EAPs): Usage has grown, with 65.3% of employers now offering EAPs.
- Financial and Health Wellness Programs: Participation remains low compared to national trends, but there’s a slight increase in financial wellness offerings.
Long-Term Trends
The survey indicates a growing focus on comprehensive benefits packages to attract and retain talent. The top additional benefits include accident insurance (79.0%), cancer insurance (70.5%), hospital insurance (61.9%), and long-term care insurance (46.7%).
Bottom Line
Benefits are becoming a critical factor in recruitment and retention strategies. To stay competitive, employers must adapt to these changing demands. For more detailed insights and to access the full survey, visit our website.
Explore the highlights of the 2024 Employee Benefit Plans Survey to understand how your organization can better align its benefits strategy with employee expectations and market trends.
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