We all know that offering higher salaries is an obvious strategy to attract and retain employees, but it’s not the only significant factor in recruitment. According to a Forbes Advisor survey, 40% of employers believe employees leave jobs in pursuit of better benefits.

As a result, 62% of businesses have revised their benefit offerings in the past year.

Employees report that these six key benefits represent the most value to them.

Comprehensive Healthcare Coverage
For over 80% of employees older than 42, group health insurance is a top priority. As employees age and require more medical attention, robust healthcare packages become even more meaningful. Beyond basic medical care, comprehensive healthcare can include dental, vision, and mental health benefits. Preventative care coverage promotes employee wellness and reduces absenteeism.

Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs) also represent significant value. These accounts allow employees to set aside pre-tax dollars for their portion of medical bills. The flexibility and tax advantages help employees manage healthcare costs more effectively.

Life Insurance
45% of employees and 43% of employers consider life insurance a top benefit. It provides financial protection for employees’ families in the event of their death, covering funeral expenses and outstanding debts and providing income replacement for dependents. Employers can offer voluntary life insurance options, allowing employees to purchase additional coverage at competitive group rates.

Pension and Retirement Plans
The ability to plan for the future is essential for 34% of both employees and employers. Employer-sponsored retirement plans, like 401(K)s, allow employees to contribute a portion of their salary to a retirement account, often with employer-matching contributions. These plans offer tax advantages and help employees save for their future. Financial education resources, such as retirement workshops and access to financial advisors, can further assist employees in making informed decisions about their financial futures.

Mandatory Paid Time Off
While 31% of employees consider mandatory paid time off a top benefit, it often doesn’t make the list of top benefits identified by employers. Paid time off is crucial for maintaining a healthy work-life balance, allowing employees to rest and recharge, reducing stress, and preventing burnout. Offering a combination of vacation days, sick leave, and personal days gives employees flexibility in using their time off. Additional perks, such as parental leave, bereavement leave, and sabbaticals, can further enhance this benefit.

Mental Health Assistance
Mental health assistance is a top benefit for 33% of employers, though only 23% of employees recognize its importance. Employee Assistance Programs (EAPs) offer confidential counseling and support services for personal or work-related challenges, providing resources for managing stress, anxiety, and other mental health issues. Wellness programs with mental health components, such as mindfulness sessions and stress management workshops, promote overall well-being and productivity in the workplace.

Pet Insurance

It might seem unexpected, but over 30% of younger workers aged 18–41 would prefer to have pet insurance as a benefit. With pets often feeling like family members, employees prize insurance for them as well. Employers who wish to attract and retain younger talent might consider pet insurance as part of a robust benefits package.

Prioritizing these key benefits can help your organization attract top talent and increase employee retention rates, ultimately contributing to your business’s success and growth. For more information on group benefit packages, contact us. Our experts will help you review available options and design a package that best meets your employees’ needs.