- Benefits are not far behind pay in employee priorities. As the “Big Stay” continues, benefits are one of the leading motivators for employees choosing to remain in their jobs.
- Consider ages and life stages. Offering benefits that address leading priorities for each generation can lead to more engaged workers.
- Personalization is key. Giving employees more choice of benefits may increase their satisfaction and trust, which can contribute to retention.
While pay remains the leading motivator for employees to remain in their jobs, benefits also carry significant weight — signaling a critical recruitment priority for employers.
The “Big Stay” is still in play, with more workers choosing to remain with their employers compared to several years ago. Benefit packages were the deciding factor for choosing employers for 49% of workers surveyed in WTW’s 2024 Global Benefits Attitudes Survey, while 54% stayed with their employers because of benefits. Four out of 10 said they would leave their employers for better benefits at a new job, even without a change in salary, and 82% of those whose benefit packages meet their needs said they would remain with their employers.
“No one will argue that pay is critical — it’s No. 1 for attraction and retention,” said Cecile Chang, managing director and Health & Benefits global growth leader at WTW. “But benefits, they’re personal. They meet personal needs in the moments that matter — when we need time off, support or healthcare. They are a critical part of a strong total rewards portfolio.”
Holistic Benefits Free Up Employees to Do Good Work
According to Chang, top priorities for U.S. employees continue to be health benefits, paid time off and leave policies, retirement benefits and flexible work arrangements. But offering other benefits that don’t seem directly work-related can ease stress and time on employees’ part and allow them to do better work, she said.
Today’s employees expect their employers to consider their holistic needs, including their physical, emotional, social, mental and financial well-being, said Bobbi Kloss, vice president of human capital management services at Benefit Advisors Network.
“Employers are now beginning to realize that the stress of [non-work challenges] is really affecting productivity,” she said. “Whatever they can do to stabilize productivity [through benefits] will be key for their long-term sustainability.”
Personalized Benefits Address Unique Needs
Benefit choice and personalization are emerging as a critical trend in total rewards. Separate research by WTW and insurance and research firm Gallagher found employees of different generations and in different life stages prioritize different benefits. Employers looking to attract and retain talent will consider both what their employees want today and what they’ll need in a few decades.
Student loan and emergency savings assistance, pet health resources, fertility benefits and childcare are most prioritized by Gen Z and millennials, according to a recent Gallagher survey. Meanwhile, Gen X and baby boomers more often seek benefits related to long-term care readiness, elder care, healthcare and retirement.
Respondents in Gallager’s survey believe millennials and Gen Z are least supported by current benefits packages and reported the lowest degree of trust in leadership among the youngest generations.
“There is a great opportunity to introduce choice and personalization into your benefits strategy to enhance trust within early talent,” said Kathleen Schulz, global innovation leader for organizational well-being at Gallagher. “Trust is a major contributor to retention and engagement.”
Emerging Benefits to Consider
According to the experts in this story, new or emerging benefits that employers may want to explore include:
- Lifestyle spending accounts
- Emergency savings programs
- Anti-obesity and diabetes prescription coverage
- Four-day work week and flexible scheduling
- Leadership development
- Programs that seek to boost employee happiness through incentivized activities or tailored benefit and policy solutions
- Expanded mental health support (particularly for children, since more than half of U.S. workers are supporting a child living with mental health challenges)
- Allowing employees to convert the value of unused PTO time and apply it to other areas, such as retirement or student loans
- Concierge services that can assist with anything from picking up dry cleaning to taking a dog to the groomer
- Access to legal support, and training and education on scams and phishing
Don’t Forget to Communicate Benefits
The business rewards of offering modernized, personalized benefits can only be realized if employees are aware of the benefits and engage with them.
Chang advised organizations to provide frequent, accessible communication about benefits (including easy-to-use benefits portals and access to support) and utilize technology and artificial intelligence to boost employees’ understanding of their benefits and measure their engagement.
Learn: Strategic Communication in Total Rewards Management
“For employees to use and value their benefits and contribute to retention, they must be aware of them,” Schulz added. “Creating a robust communications plan to bring visibility to benefits, and also how benefits support the employee value proposition, is important.”
Using Benefits as a Tool to Strengthen Businesses
Having good benefits on deck, and seeing long-term retention as a result, is only one piece of creating a sustainable company, Schulz cautioned. “Employees who stay at an organization where they are no longer engaged but don’t want to lose the benefits are not likely helping the organization grow,” she said.
Still, offering benefits that are valuable to each unique workforce will likely give an employer an edge.
“If you’re standing out among competitors with your total rewards package, if you’re keeping up and educating your employees on the benefits you’re providing for them, your ability to retain them will be that much stronger,” Kloss said.
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