Benefits Losing Favor in the Workplace

By: Marie Donlon

In an age where some of the most coveted workplace benefits include being able to bring your dog to work or being allotted time and space for a nap, experts say some long-lived employee benefits are no longer all that popular in the workplace.

Among them, according to experts, are:

Flexible Spending Accounts (FSAs) — Designed to let workers set aside pre-tax dollars for medical expenses, thereby reducing medical costs via tax savings, more and more employers are doing away with this benefit. Why? Because FSAs force employees to estimate their annual medical costs in advance of any medical expenses. If estimated incorrectly and the account can’t spent down in time, employees stand to forfeit a significant amount of money.

Cafeterias on Site — What was once a popular perk for employees, particularly for employees working for large companies, was the on-site cafeteria. Offering employees lunch at discounted rates, this perk has been gradually losing favor with employers, no doubt due to the added expense. Currently, only 12% of large employers offer employer-run cafeterias, dropping from 17% percent of employers back in 2017.

Housing Relocation — It used to be that larger companies would offer relocation packages as an enticement for new hires out of the area. Yet, the number of companies offering this benefit continues to dwindle, falling from 24% in 2016 to 16% of employers currently offering this benefit.