What Benefits Matter Most to Employees?
It's no secret that health insurance is at the top of many American workers' minds when reviewing their employee benefits packages. However, this isn't the only benefit that can help you attract and retain the quality of employees you seek. Before offering employee benefits, it's important to research what benefits truly matter to your workers. Hint — it's not the annual company retreat. While 20% of employers view company retreats as an important benefit, they might be surprised to learn that retreats don't even make the list of top priorities for employees. (Forbes)
So, what benefits do employees value most? Read on to find out.
What benefits do employees value most?
When it comes to employee retention, benefits play an important role. In some cases, salary matters just as much as benefits. A 2024 Forbes Advisor survey found that 40% of employers believe workers leave their jobs for better benefits. Yet, more than half of American workers (54%) say they're happy with their current benefits. However, many workers are willing to make sacrifices for the right perks. One in 10 workers would even be willing to take a pay cut to access better benefits.
Why are benefits important to employees, and what benefits top their priority list? Understandably, workers are looking out for their health, and healthcare is expensive. Healthcare consistently ranks as the most valued benefit. Both employers (68%) and employees (67%) agree that employer-covered health care is the most important perk. This is especially true for employees over age 42 — more than 80% say healthcare coverage is a must when considering new roles.
Beyond healthcare, the other most valued benefits (in order) include:
Employer-covered healthcare
Life insurance
Retirement plans
Mandatory paid time off
Mental health assistance (Forbes)
Creating the right employees benefits packages
Building a benefits package that aligns with your team's priorities starts with understanding what employees want and what benefits stand to keep them engaged long-term. While flashy perks may grab attention, the data shows that workers prioritize meaningful and traditional benefits like healthcare, retirement planning, and paid time off.
To create a competitive and effective benefits package, focus on the essentials:
Comprehensive healthcare coverage. The majority of employees rank employer-covered health care as the most valuable benefit
Life insurance and retirement plans. These provide financial security and peace of mind, helping employees plan for the future
Mandatory paid time off. Don't underestimate the value of work-life balance. Many employees rank PTO as one of their top priorities
Mental health support. More employers are recognizing the importance of mental health benefits, but it's crucial to communicate these benefits clearly so employees know what's available
Benefits that help with retention
Having the right employee benefits on hand can help you attract and retain top talent. If you're worried about losing your best employees to new job opportunities, you need a benefits package that will help them feel valued and find security in their personal lives.
While salary is still the most significant factor in why employees leave for a new job, it's not the only thing driving career moves. Many workers are just as motivated by the overall quality of their benefits and opportunities for growth.
Forbes Advisor found these are the four key reasons employees are most likely to quit:
Higher pay. A bigger paycheck remains the leading reason people leave their jobs, with 32% of employees saying they would switch employers for better pay. Younger workers, especially those under 35, are more likely to job-hop in search of higher salaries
Better benefits. The second most common reason employees quit is to access better benefits. Nearly one in four workers report that feelings of dissatisfaction with their current benefits package are enough to push them to look elsewhere
Career advancement opportunities. About 22% of employees leave because they don't see clear career paths or development opportunities in their current roles. Employers who fail to invest in employee growth risk losing valuable talent to companies that do
Flexible work options. One in five employees say they've left a job because it didn't offer flexible work-from-home options. Among in-office employees, remote flexibility ranks second only to flexible hours on their benefits wish list
The Takeaway
Employers have to work hard to stand out as a great place to work, and having a solid benefits package can make that task a lot easier. The era of ping-pong tables and video games in the office is coming to an end as employees look for benefits that can make a real difference in their lives. Think group health insurance coverage, financial security to flexibility, and growth opportunities.
Offering competitive benefits isn't just a nice gesture; it's essential to attracting and keeping great talent.
That's where Thatch comes in. Thatch helps modern employers streamline and simplify the way they offer health benefits. Their flexible platform makes it easy to design and manage personalized, employee-first health plans without the complexity and red tape of traditional systems. Whether you're looking to improve your current benefits package or build one from scratch, Thatch gives you the tools to offer high-quality healthcare and coverage options your team actually wants. See for yourself by signing up for a free demo of Thatch today.
