What Benefits Do Employees Value Most?

Any company that's attracting and retaining skilled workers in today's hiring market must obviously offer a variety of benefits and perks in their overall compensation strategy. Consider that a survey conducted by Glassdoor found that over 60% of employees say benefits were a decisive factor in accepting their job offer. The Glassdoor survey also found that 80% of employees prefer extra benefits over salary increases. And Gympass' latest State of Work-Life Wellness report shows that 78% of US employees believe their wellbeing at work is just as important as their salary.

Giant tech companies like Facebook, Twitter, and Google are known for their extravagant benefits — acupuncture and massage services in the office, free catered meals every day, and more. These perks may seem unmatchable and costly for your organization, however people seem to value less- expensive benefits , such as unlimited vacation time , workplace flexibility, essential healthcare, life insurance, family-friendly perks (including parental leave and childcare assistance at work) , and other voluntary employee benefits . 

But what are the most popular employee benefits? These are the top nine.

1. Health Benefits

A recent survey by Fractl found that health benefits — including dental and vision insurance — are among the most popular for employees. Nearly 9 in 10 ( 88%) of respondents said this benefit would be a key part of their consideration when taking a new job. 

A survey by SHRM found that:

• 56% of Americans who have employer-sponsored health benefits included in their benefits packages consider their health coverage a key factor when deciding to stay at their current job. 
• 46% said health insurance was a deciding factor when choosing their current job. 

This is one of the most important benefits to employees, which is why you should consider reviewing the current health coverage you are giving your employees and see how you could improve it. 

2. Wellness Benefits

Wellness benefits can deliver a great return on your investment. A good wellness program can improve your employees' health and wellbeing , and have a positive impact on the company's overall culture. In addition, wellness benefits can help boost employee productivity and morale, resulting in higher recruitment and retention rates. 

Some employee wellness initiatives include integrating health coaching into medical benefits plans; giving access to a wide variety of fitness studios, offering community service activities; scheduling work motivation sessions; and access to a library of health resources. 

3. Retirement Plans 

One of the most underrated workplace perks employees value most is a good retirement plan, which can help people retire with dignity and financial security. However, retirement plans can be very complex to implement and manage. It’s important to understand the various advantages and different models of retirement plans to best meet the future needs of your employees, and those that make financial sense for your organization. 

By offering employees retirement options and pension plans, you will not only be contributing to their future wellbeing but also to the company’s. Including a good retirement plan in their benefits package can give your business significant tax advantages and rewards, as well as a highly motivated and productive workforce. 

4. Paid Time Off 

Paid time off (PTO) is an essential part of any job, which is why it often ranks as a highly popular benefit. A good PTO policy can also have significant benefits for your business. It attracts diverse employees, improves autonomy and trust, gives you a competitive advantage, and reduces unscheduled absences. 

5. Flexible Work Arrangements 

After the monumental change that the COVID-19 pandemic brought to the world of work, flexible work arrangements have become one of the most desirable employee benefits. Younger workers in particular value their personal time and opportunities to support their mental health more than other generations. Now, most employees prefer changing jobs rather than giving up their working from home and other flexible remote working options.

As with other highly valued benefits, the positive aspects of flexible work go beyond a happier and potentially healthier workforce. Companies that trust their staff and offer flexible working arrangements often see an improvement in their culture and employer brand. A Deloitte survey of 1,000 US professionals found that 94% personally benefit from work flexibility. Respondents said it gives them better mental health, greater work-life balance, and less stress. 

6. Family-friendly Benefits

As companies look to create an inclusive and diverse environment, family-friendly benefits have become an integral part of their talent strategy. Today, individuals are looking for managers that take care of their workers and companies that put in the effort to extend those kinds of supportive benefits to their families. 

Typical Family-friendly benefits include adoption and parental leave. Others are childcare, bereavement leave, and leave to care for a partner or spouse. Family benefits can help employers support a more inclusive and diverse workplace, both of which are critical factors for attracting and retaining top talent.

7. Student Loan and Tuition Assistance 

As companies struggle to hire and retain workers in today’s challenging job market, some are considering unique employee benefits ideas to attract and retain top talent. For example, repaying part of an employee’s student debt or reimbursing tuition fees are job benefits that can be highly valuable to current staff as well as prospective employees. Companies like Google, Estee Lauder, Hulu, Peloton, and PwC are among those helping their workforce repay their ongoing student debt. 

8. Stock Options

A common type of benefit is granting your staff the right to buy company shares at a set price. These financial-driven perks are designed to encourage employees to stay with a company and help it grow. They are also a cost-effective way to attract and retain top talent. Employees who own shares of company stock can also earn additional financial incentives for performing well at work, which can boost performance: Employees want to see the company's stock price rise so they earn a good profit on their initial stock-option package.

9. Training and Development 

Investing in your workforce’s training and development is essential for the growth of a business. There are several studies that prove the value of training employees. A most recent Gallup study showed that businesses with actively engaged and dedicated employees see an 81% lower absenteeism rate and a 23% higher profitability.

By offering constant, high-quality training and development to your staff, employees will upgrade their skills, boost their confidence, and be more driven on the path toward their professional goals. The results: higher performance and productivity levels and better time management.

 How important are benefits to employees? 

Today more than ever, the right combination of employee benefits is essential for retaining your top people and attracting the best talent. Benefits and company perks have become as crucial to company success as a competitive salary. But finding the right mix of benefits is a challenging task that requires thoughtful strategy and planning — especially for smaller companies with lower budgets. 

Before you start implementing a comprehensive talent strategy, it is essential to first identify the types of benefits your employees value most and then find the most cost-effective way to include those benefits in your package.