To determine the size of the benefits market in the US, specifically targeting working parents, the industries that provide more benefits packages aimed at working parents, and the key sources of information used when deciding on benefits packages.
While market size information was available for the benefits management market and the benefits software market, there was no information readily available regarding the actual benefits market. The benefits management market is growing at a CAGR of 6.1%. The growth in North America is primarily driven by the Healthcare Reform Act and the rising cost of drugs. The emergence of a healthcare exchange from mature benefits administrators and web-based administration analytics tools are also resulting in growth.
Over the last two years, there has been a noticeable shift towards financial wellness in relation to benefits packages in the US. Both employers and employees have a focus on financial wellness and stability, with a number of employers now offering "financial education on a range of topics such as insurance basics, cash flow management, budgeting, and investments, among others." The market is estimated to be worth $825 million in the US by 2024.
COVID-19 has brought with it a degree of fear among working parents, with 42% saying they are too scared to take advantage of the benefits offered to working parents at the current time. In fact, 39% of those entitled to childcare benefits are worried they may be made redundant if they use the benefits, including paid time off or flexible work hours. This is based on a survey completed in August 2020.
Another survey found that most companies offer employees the chance to work flexible hours, with around 76% of companies allowing parents to work fewer hours and about 10% maintaining pay and benefits. In addition, approximately 30% of companies offer backup childcare services, with a further 30% looking at rolling this out. Around 25% of companies are offering subsidized care at centers, tutoring, or other educational resources.
There are additional challenges to employers navigating the benefits packages for working parents in light of the pandemic, especially given the number of companies now working remotely and the number of schools closed. Flexibility has been repeatedly emphasized as the best way to support working parents over this time.
Working mothers account for 32% of the women in the workforce. According to census data, there are approximately 23.5 million working mothers in the workforce, with two-thirds of the women working in full-time positions. 40% of working women work in the educational, healthcare, or social assistance sectors.
Within the last two years, there has been a noticeable upsurge in articles and information relating to benefits and working parents. There have been a number of studies and surveys that provide insight into the market.
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