Benefits and Job Perks
Benefits and Job Perks
Overview
A close eye on benefits trends is always important for HR leaders and recruiters intent on building strong tech teams. This focus has become more critical than ever in a year where tech satisfaction is at an all-time low and nearly half of tech professionals are seeking to leave their current organizations. While close attention to these trends can help improve retention rates, there is also a strong opportunity for recruiting teams to find and deliver the work experiences that top tech talent wants – and isn’t getting.
This chapter explores not only what benefits tech professionals value most, but also how leading organizations are building their benefits strategies to attract and retain top talent. We'll examine which benefits drive the highest satisfaction rates, where the most significant gaps exist between employee expectations and current offerings, and how different demographic groups respond to various benefits packages. For talent acquisition teams, this information provides crucial insights for crafting compelling offers. For HR leaders, it offers a roadmap for designing benefits packages that can help reduce the record-high 47% of tech professionals currently seeking new positions.
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Even though salaries have increased on average in 2024, companies seem to be scaling back valuable benefits, as fewer tech professionals report receiving them year over year.
The gap between desired and offered benefits continues to grow.
Just as many tech professionals received a bonus in 2024, though bonus amounts have decreased by $817 on average.
Remote work has become increasingly critical for job satisfaction, yet companies are rolling back these options.
The Widening Gap In Employee Benefits
Among full-time employees, traditional benefits, such as health insurance, PTO offerings, dental coverage, and retirement benefits, saw slight declines across the board in 2024, reversing a long-standing trend of stable or expanding offerings. More significant declines were seen across less common benefits. For example, tech professionals who received training and education from their organization in 2024 dropped 6 percentage points. Financial advising, paid volunteer opportunities, flexible scheduling, mental health programs, and college tuition reimbursement all lost ground as well, at a four percentage point year over year decline.
Perhaps most telling is the current state of professional development opportunities in an environment where upskilling is key to career growth for tech professionals. While 71% of tech professionals consider training and education opportunities an important benefit, only 41% report having access to these opportunities through their employer. This 30-point gap represents one of the largest disconnects between desired and offered benefits in our study, highlighting a significant missed opportunity for employers to build loyalty and enhance workforce capabilities.
The Benefits Employees Have vs. Those They Find Important
Remote Work Remains A Battleground
Remote work is a critical factor in job satisfaction in 2024, yet our data shows companies are moving in the opposite direction when it comes to employee preferences. Remote scheduling options decreased by 3 percentage points in 2024, while flexible scheduling arrangements fell by 4 points.
This pullback comes despite clear evidence that flexible work arrangements remain highly valued, particularly among specific demographic groups. Our data shows that tech professionals with children in their household are more likely to have and utilize remote and flexible scheduling options. The reduction in these offerings may disproportionately impact working parents and could influence retention rates among this demographic.
26% of tech professionals rank remote work options in their top two benefits
The State of Performance Pay for Tech Workers
Bonuses seemed to take a hit as well in 2024, though the full story is more nuanced than the numbers first suggest. At first glance, the drop in professionals receiving bonuses, from 39% in 2023 to 31% in 2024, looks alarming. However, this year's study included a larger proportion of consultants (15% versus 9% in 2023) and fewer full-time employees. When we focus solely on full-time tech professionals with more than one year in their current role, the bonus rate holds steady at 39%, matching last year's levels.
However, even accounting for this demographic shift, bonus amounts tell a concerning story. Among those who received bonuses, the average amount decreased by $817 compared to the previous year.
Merit raises also showed a troubling trend. While these increases historically served as a reliable path to compensation growth, only 36% of tech professionals received a merit raise in 2024—down from 41% in 2023. This signals a potential shift in how companies approach performance-based compensation, even when controlling for employment type.
Did you receive a bonus this year?*
2024 Survey Results
2023 Survey Results
*Rebased to only include tech professionals with more than one year in their current role.
Average Bonus for Tech Professionals
2024 Survey Results
2023 Survey Results
What Benefit Trends Mean for 2025
With nearly half of tech professionals looking for new jobs, companies cannot afford to ignore the connection between benefits cuts and employee satisfaction. As we move into 2025, employers must carefully weigh the short-term savings of reduced benefits against the long-term costs of increased turnover and decreased satisfaction. Companies that enhance their benefits packages to meet tech professionals’ wishes won’t just build a happier workforce, they will attract the best in tech – a move that will pay dividends on the agility and innovation a company is capable of.
Which of These Benefits do you Consider Important?
Recruitment Opportunities for 2025
Strengthen Core Benefits
With traditional benefits declining across all categories and tech talent satisfaction at record lows, organizations have a clear opportunity to differentiate themselves by maintaining or enhancing core benefit offerings.
Invest in Professional Development
The 30-point gap between desired and offered training opportunities presents a huge opportunity. Organizations that bridge this gap can simultaneously build loyalty and strengthen their technical capabilities, creating a compelling advantage in both retention and innovation.
Optimize Remote Work Strategy
Despite industry trends toward reducing flexible work arrangements, the data shows these benefits remain highly valued, particularly among professionals with families. Organizations should carefully evaluate the full impact of remote work policies on talent retention and satisfaction.
Revitalize Performance Incentives
With merit raises down significantly and declining bonus amounts, organizations have an opportunity to stand out. Now more than ever, utilization of recognition and rewards can help attract top talent while also encouraging high performance and innovation.