These are the top benefits employers will offer in 2023 to address work-life balance

“Flexibility is the gold standard of work-life balance benefits,” says Jonathan Pas, health care leader at consulting firm Mercer. 

It’s no surprise then that two years after the pandemic forced most office workers to perform their jobs remotely, 78% of employers say they’ll allow employees to continue doing so regularly in 2023, according to a Mercer survey. But there’s still some hesitancy: only 9% say they will allow employees to work remotely daily. 

Regardless, flexibility around when employees work is just as important as where. In the survey, 66% of employers said they would offer flexible work schedules over the course of a typical work day, such as specific times during the week to attend to personal matters and four-day work weeks. Employees no longer want to organize their personal life around a rigid work schedule but instead want the two intertwined, so they can decide what to prioritize and when. 

Pas cautions against making hollow promises about a company’s commitment to work-life balance. “If employees feel a disconnect between programs that are rolled out and what senior leaders really expect, credibility is questioned, and the goodwill created through the program is negated.” He cites paid time off to volunteer, which almost half (45%) of companies say they will add to their benefits packages next year. 

Other benefits requiring a broader organizational buy-in are sabbaticals and unlimited vacation days. Both benefits encourage employees to pursue interests outside of work with extended periods off. Still, if they feel a stigma associated with taking advantage of them, they’ll be hesitant to  do so. Although the relatively low adoption rates for 2023—only 12% for sabbaticals and 15% for unlimited vacation—indicate that employers are still averse to paying employees not to work. 

Instead, they prefer to find new ways to give employees more money, with the rise of employer-funded lifestyle accounts, which are often reserved for big-ticket items that might otherwise require some budgeting. Though only 12% of employers said they would add lifestyle accounts in 2023, 70% said they are considering them, which could indicate a trend on the horizon.  

But perhaps the most telling statistic about the importance of addressing work-life balance is the number of companies that said they don’t plan to offer any additional benefits to support work-life balance: a mere 5%. 

Paolo Confino
paolo.confino@fortune.com
@paolo1000_

Reporter's Notebook

The most compelling data, quotes, and insights from the field.

Companies are making significant financial investments to win on culture and better retain employees. PwC, for example, recently announced a $2.4 billion investment in flexible work and more personalized benefits for its workers. But what about smaller companies with corresponding budgets?

Leslie Patterson, EY’s Americas and U.S. diversity, equity, and inclusiveness leader, was asked that very question at the Great Place To Work For All Summit last week: “What are some of the things [EY] has done culturally that didn't necessarily require a multimillion dollar investment?” asked one audience member. Here’s what she had to say: 

"The first thing is around the culture of caring and how you demonstrate what that looks like. People don't leave organizations, they leave managers, and so if I'm not role modeling what that culture of care looks like, I have a greater opportunity of having my team leave…And that doesn't cost anything, but it takes time. It takes a lot of communication, it takes trust. And we all have to realize this is a long game. So you've got to continue to chip away at building culture and finding leaders that are comfortable enough to demonstrate what that role model experience looks like."

Around the Table

- In a report by Comparably about employers with the highest compensation satisfaction, the top 15 companies all offered raises that reflect rising inflation. CNBC

- A menswear critic observed finance bros as they returned to their Manhattan offices. He found that some struggle to nail their return-to-office outfits. New York Times

- Some companies have always been considered talent factories. A new study from the Burning Glass Institute proves that’s the case. Wall Street Journal

- The key to the perfect company culture might lie with someone unexpected: Beyoncé. Her new song, “Break My Soul,” urges listeners to release themselves from life’s constraints and dedicate themselves to more meaningful priorities. Bloomberg

Watercooler

Everything you need to know from Fortune. 

Vegan layoffs. Beyond Meat announced it would lay off about 200 employees, approximately 19% of its workforce, and its COO, CFO, and chief growth officer would leave the company. —Eric Pfanner

Golden Visas. Some European nations are cracking down on Golden Visas that became popular during the pandemic as they try to curb the growing number of digital nomads. —Chloe Berger

Railroad rejection. The third-largest railroad union in the country rejected yet another collective bargaining agreement this week because it did not include sufficient benefits, such as sick leave and paid time off, illustrating the growing importance of well-rounded compensation packages. —Josh Funk