Employees still expect broad array of benefits, but to a lesser degree

Health care, retirement contributions and flexible work schedules remain the leading benefits cited by employees at middle market companies in North America compared to a year earlier, a recent poll commissioned by RSM found.

However, the number of individuals expecting these benefits and others fell across the board—significantly, in some areas—a sign that a strong job market where workers have the upper hand is moderating.

At the same time, 80% of respondents surveyed say they are now required to work on-site at their jobs at least some of the time, with more than half (54%) expected to show up five days a week. And while policies to institutionalize remote work options may be more established, the data suggests that pandemic-driven accommodation around remote work is lessening.

The responses were provided by 1,008 North American employees at middle market companies, defined as those with 201 to 7,000 workers. They were gleaned from a broader survey conducted Nov. 16−26, 2023, by the research firm Big Village on behalf of RSM; the firm polled a random sample of 2,019 adults working in North America in at least one job.

Responses from workers at midsize companies indicating their organizations offered health care and retirement contributions in 2023 were on par with responses a year earlier. Flexibility appears to be on the rise, with 41% of respondents citing their ability to work flexible hours or schedules. Health care, retirement contributions and flexible schedules remain among workers’ top choices in terms of importance.

Middle market employers continue to offer a variety of benefits, including wellness or fitness options, offered to 22% of workers; opportunities to provide input on how work is performed at 20%; incentive compensation to 18%; and equity ownership, offered to 8% of employees.

“As employers make those decisions on competing demands, understanding which benefits their employees prioritize should help them strengthen the return on those investments in their workforces,” Bushman says.

Meanwhile, more than three-fourths of middle market employees polled said they received pay raises in the current fiscal or calendar year, with 36% receiving a bump of 5% or more. They expect similar increases in the coming compensation cycle: 16% expect no raise; 18% anticipate an increase of 1% to 2%; 20% foresee 3% to 4% more; 14% expect 5% to 6%; and 23% foresee getting 7% or higher.