Some employers, including Zoom and Deloitte, seem to be testing whether they can scale back highly valued benefits (e.g., paid parental leave, paid time off) without triggering employee backlash. A related phenomenon—sizeable increases in health insurance premiums—is prompting employers to revisit alternatives there too. These are the most recent examples of what may be a broader shift, driven by a tightening labor market, reduced employee leverage, and a growing willingness among employers to prioritize cost control and measurable performance metrics over employee engagement and satisfaction.
Business Takeaway: While benefit reductions may generate short-term savings, they can also create long-term issues with morale, engagement, retention, and reputation—particularly where affected benefits touch care giving, family planning, or other issues that employees view as deeply personal. A few years back, at an event celebrating Top Workplaces, an employer accepting his company’s award conceded that one benefit, free soda, had been on the chopping block. That is, until an employee survey indicated it was one of the employees’ favorite benefits. He had no idea. Do you know what your employees value and why?