More than money: Why employees are quitting in 2025

Keeping great employees has never been harder — or more tied to the benefits a company offers. As workers weigh their options in a more flexible job market, health insurance has emerged as one of the top four most influential factors shaping their decisions to stay or leave. 

For employers, compensation alone no longer seals the deal. Today’s workforce wants security, choice, and support — and they expect those things to show up in their benefits package. 

Money drives 34% of employees to consider leaving in 2025

Compensation is the top reason to stay at a job for 34% of workers.

Work-life balance comes next at 19%, with job security at 14%, followed by health insurance at 12%. That’s ahead of both company culture and even opportunities for career growth.

Interestingly, younger workers are the most likely to rank health coverage as their top concern. 

Among Gen Z respondents (adults aged 18-28), 19% chose health insurance as their #1 priority, more than any other age group. That number drops to 10.6% for Millennials (ages 29-44), 12.2% for Gen X (ages 45-60), and 11.1% for Baby Boomers (those 61 and older).

You might assume younger workers prefer perks like remote work, but a benefits package that includes health insurance still matters to them.

In reality, reliable health coverage can offer a sense of financial security for younger workers early in their careers or those managing student debt. It helps protect against unexpected medical expenses and provides reliable support during major life changes.

For employers, meeting these expectations is a chance to stand out. Flexible, high-quality health benefits can attract younger talent in a competitive job market and address an often underestimated priority.

Employees say competitive salary and strong health benefits would keep them from quitting

Employee retention isn’t just about holding onto talent — it’s about giving them reasons to stay. When we asked workers across the U.S. what would make them more likely to remain at their current job, the answers pointed to a clear set of expectations.

With instructions to “select all that apply,” 81% of respondents said that competitive salary and raises would encourage them to stay. But, compensation isn’t the only factor working adults consider when deciding whether to stick with an employer.

Other popular responses include:

• 64% said a strong health benefits package would make a difference

• 59% want flexible work arrangements

• 51% value career growth opportunities

• 49% cited a positive company culture and leadership

But when health benefits miss the mark, people leave. Employees identified health insurance-specific issues that could drive them to consider leaving a job:

• 62% would leave if the employer offered no health insurance

• 60% cited high out-of-pocket costs (e.g., deductibles, copays)

• 59% pointed to high monthly premiums

• 47% would be frustrated by limited provider networks

• 45% said low employer contributions would be a dealbreaker

Meeting employee expectations for employer-sponsored healthcare doesn’t require overhauling your entire compensation structure. Offering the benefits that employees actually care about can go a long way. 

Individual Coverage Health Reimbursement Arrangements (ICHRAs), for example, allow employees to choose the plan that works best for them while letting employers control costs and reduce the administrative burden that comes with choosing a traditional one-size-fits-all group plan.

Ultimately, strong health benefits are practical, personal, and in high demand. Offering them can significantly reduce turnover and improve employee loyalty in a competitive job market.

Top benefits employees want in 2025: Affordability, supplemental coverage, and more choices

Small businesses often rely on standard group plans or limited benefit options, but employees are asking for more affordable, personalized, and comprehensive employer health benefits. In our survey, respondents shared what they want most in an employer health plan:

• 64% want lower-cost health insurance with employer contributions

• 56% want better dental, vision, or supplemental insurance options

• 47% want more plan choices that fit their needs

• 47% want expanded services like mental health or preventive care

In addition, 33% prefer flexible models like choosing their own plan and getting reimbursed, such as through an ICHRA. Only 7% said health insurance doesn’t factor into their job decisions at all.

Workers aren’t just evaluating whether or not coverage exists. They’re also thinking about how well it fits their lifestyle, budget, and long-term needs. 

Flexible, modern alternatives like ICHRAs are increasingly well-suited to fill the gap. According to our Small Business Challenges survey, 27% have considered implementing an ICHRA. That makes total sense, as this option offers a more cost-effective insurance solution for both employees and employers.

How employers can anticipate and adapt to employee expectations 

Benefits are now a primary factor influencing employees' decisions about where to work, their tenure, and their sense of value. For small businesses competing with larger employers, meeting these expectations doesn’t require matching every perk. It requires listening, responding, and offering smart, flexible solutions.

Emerging options like ICHRAs allow employers to reimburse employees tax-free for health insurance plans they choose themselves. Instead of offering a one-size-fits-all group plan, businesses can set a defined budget for health benefits. Employees then choose the coverage that best fits their needs.

ICHRAs bring some valuable advantages:

• Cost control for employers

• Increased plan flexibility for employees

• Portability for employees who change jobs or locations

• Compliance with ACA requirements without the administrative burden of managing a group plan

By moving toward personalized, portable benefits, businesses can build compensation packages that feel both competitive and human. This is especially important in a labor market where employees increasingly seek personalized experiences and benefits that cater to their unique needs, rather than standardized offerings.

Here’s where to start:

• Evaluate benefits annually: Needs shift — what worked last year might not reflect what your employees value now

• Offer flexibility via an ICHRA: Letting employees choose their own health plan gives them more control and satisfaction

• Prioritize cost-sharing and transparent communication: Employees want to know what’s covered, what’s not, and what they’re paying for

A benefits strategy that adapts to employee needs is both a retention tool and a signal that your business is paying attention.

Make your benefits a reason employees stay

When trying to figure out why employees leave their jobs, our survey findings point to one consistent theme: misaligned or inadequate benefits, especially health insurance. Employees want plans that reflect their priorities relating to cost, choice, and support.

Thatch makes it easy for businesses to offer flexible health benefits like ICHRAs that meet employee expectations and reduce turnover risk. Set up a free demo to find out how they can provide tailored help to your business.

Methodology

The survey of 752 US-based working adults was conducted via SurveyMonkey for Thatch on March 31 - April 1, 2025. Data is unweighted and the margin of error is approximately +/-3% for the overall sample with a 95% confidence level.