Offering higher pay might seem like the obvious way to attract and retain employees, but it's not the only factor that matters. According to a survey conducted by Forbes Advisor, 40% of employers believe that workers leave their jobs to seek better employee benefits. This indicates that benefits play a crucial role in both attracting and retaining top talent. 

Additionally, 62% of businesses have adjusted their benefit offerings in the past year, showing a growing recognition of their importance.

Here are five key benefits that are highly valued by employees:

Comprehensive Healthcare Coverage. Over 80% of employees older than 42 prioritize roles that provide employer-covered healthcare. Healthcare coverage is a fundamental need for employees, especially as they age and require more medical attention. A robust healthcare package can not only attract top talent but also foster loyalty among existing employees.

Beyond just basic medical care, comprehensive healthcare coverage can include dental, vision, and mental health benefits. Offering coverage for preventative care, such as annual check-ups and vaccinations, promotes employee wellness and reduces absenteeism.

Flexible Spending Accounts (FSAs) or Health Savings Accounts (HSAs) allow employees to set aside pre-tax dollars to cover out-of-pocket medical expenses. They offer flexibility and tax advantages, helping employees manage healthcare costs more effectively.

Life Insurance. 45% of employees and 43% of employers named life insurance as a top benefit. Life insurance provides financial protection for employees' families in the event of their death. It can cover funeral expenses and outstanding debts and provide income replacement for dependents.

Some employers offer voluntary life insurance options, allowing employees to purchase additional coverage for themselves or their family members at competitive group rates.

Pension and Retirement Plans. 34% of employees and 34% of employers consider the ability to plan for the future to be an essential benefit. Employer-sponsored retirement 401(K) plans allow employees to contribute a portion of their salary to a retirement account, often with employer-matching contributions. They offer tax advantages and help employees save for their future.

Financial Education resources and education help employees make informed decisions about their financial future. This can include retirement workshops, online resources, and access to financial advisors.

Mandatory Paid Time Off. Many employers seem unaware of the importance of this benefit. 31% of employees named this a top benefit, but it didn’t even make the list of top five benefits named by employers. 

Mandatory paid time off is crucial for maintaining a healthy work-life balance. It allows 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 how they use their time off. Some companies also offer additional perks like parental leave, bereavement leave, and sabbaticals.

Mental Health Assistance. 33% of employers named mental health assistance as a top benefit, while only 23% of employees recognized its importance.

Employee Assistance Programs (EAPs) offer confidential counseling and support services to employees facing personal or work-related challenges. They provide resources for managing stress, anxiety, depression, and other mental health issues. Wellness programs that include mental health components, such as mindfulness sessions, stress management workshops, and employee resilience training, promote overall well-being and productivity in the workplace.

And in case you didn’t know…

Pet Insurance. Surprisingly, over 30% of younger workers aged 18–41 prioritize having pet insurance available as a benefit. As pets increasingly become part of the family, employees seek ways to care for their furry companions. Providing pet insurance not only helps attract and retain younger talent but also demonstrates a company's commitment to supporting employees' diverse needs.

By prioritizing these key benefits, your organization can appeal to top talent and increase worker retention rates, ultimately contributing to the success and growth of your business. For more information on group benefit packages, contact us at Bay Area Health Insurance. Together, we will review available options and put together a package that best satisfies your current and future employees.