A job candidate’s decision to accept an offer is no longer just about the salary; a strong employee benefits package plays an increasingly big role. According to the 2024 Employee Benefits Survey from PeopleKeep, 81% of employees said their employer’s benefits package played a major part in their decision.
Employees now expect to receive certain workplace benefits as standard, and they assess the rest of the job offer against that expectation. Health coverage, retirement support, and paid time off are still the biggest priorities for any employee benefits package, but flexibility and wellness benefits have shifted from nice-to-have extras to basic expectations for all employee benefits programs. Employers whose offerings haven’t adapted to this shift could lose ground with job candidates even before the first interview.
Health Coverage Is Still the Deciding Factor
Although benefits expectations are changing, health insurance benefits remain the one perk that matters most to employees. PeopleKeep found that 92% of employees rated health benefits as important, while 91% felt the same way about dental insurance. With medical costs continuing to climb, it is only natural for workers to want to know their employer can help cover costs should they become ill. Candidates will notice if you offer limited health coverage or your premiums are high, and your current employees will keep it in mind when contacted by recruiters.
Time Off Ranks Alongside Pay and Health Coverage
The PeopleKeep survey also found that 90% of employees said paid time off is important to them, placing it close to retirement and health coverage in terms of importance. Employees seek some flexibility when they need to rest or go on vacation without falling too far behind at work. Generous PTO policies with easy-to-understand rules tend to encourage employees to stay with the company longer and take fewer unplanned days off, while confusing or limited PTO has the opposite effect.
Retirement Benefits Build Loyalty Employers Often Underestimate
Eighty-nine percent of employees surveyed identified retirement benefits as an important factor, but only 61% of employers actually offer a retirement plan. This gap provides a perfect opening for employers seeking a competitive edge. Introducing a 401(k) or similar plan and teaching your workforce how to use it shows them you’re planning for their future.
Flexibility Is Now Part of a Modern Benefits Package
Remote and hybrid work options were once considered bonuses, but they are now cited as important by 57% of employees. However, simply offering remote days is not enough; employees also value having predictable schedules and extra time off so they can manage their lives outside of work without impacting their on-the-job performance. Therefore, flexibility should be considered a core part of the offering rather than an add-on.
Wellness Benefits Are Closing a Gap Between Employers and Employees
Four-fifths of employees identified mental health and wellness benefits as important to them. These programs are most effective when they are easy to use and offer concrete benefits, such as therapy coverage, caregiving support, and time off that can be used without hitting roadblocks.
In Prudential’s 2025 Benefits & Beyond Study, 91% of employees said having modern benefits made them more likely to be satisfied with their employer, while 90% said it made them more likely to stay. However, there is a real disconnect here: 86% of employers believed they already offer modern benefits, while only 59% of employees agreed. Since employees are the ones making the decision about whether to stay or go, it is worth closing this gap in perception.
What a Stronger Benefits Strategy Looks Like
A strong benefits strategy should be based on the benefits that employees actually rate as important, with flexibility and communication built around them.
- Cover the basics well, including health insurance benefits, dental coverage, and PTO that employees can use when needed without a fight.
- Add a retirement plan if you don’t already offer one, and explain how it works in plain language.
- Build in flexibility, whether it means offering hybrid schedules, compressed workweeks, or more predictable hours.
- Make employee wellness programs specific and easy to access rather than just a line item nobody uses.
- Communicate your employee benefits offerings often, as employees can’t value what they don’t understand.
Business Benefits Group Helps You Build a Package That Works
Figuring out which benefits to prioritize and how to pay for them requires real expertise and time that most HR teams don’t have to spare. Business Benefits Group has spent nearly three decades helping employers design employee benefits packages that suit their budget as well as their workforce.
BBG’s team can help you compare your options, close gaps in your current offerings, and put together a benefits strategy your employees will actually use. Contact Business Benefits Group today to start building a package that will keep your best people around.