In 2023, CIPD’s Good Work Survey asked employees whether they were considering leaving their current jobs in the next 12 months and, if so, why. Of the 18% employees that were considering moving, a staggering 34% of them were doing so to get better benefits elsewhere. Better benefits far outweigh any other reason for a move including increased job satisfaction, more opportunities for promotion and professional development. Better benefits even outweighed a desire to venture into different kind of work. 

Even more compelling, a different survey found that about 3 out of 4 Americans would accept a job with a low salary if it meant getting better health care benefits, including medical coverage, out of pocket costs and lower premiums. More than half of America’s employees, 54% to be exact, would also take lower salaries if they got voluntary benefits like disability income, critical illness, and pet insurance. Most would stay with their current employer if they got access to employee benefits that included health spending, voluntary benefits, and mental health benefits. The question is, why? 

Why Employees Value Benefits Over Salary 

Rising Healthcare Costs 

One of the most compelling reasons employees prioritize benefits over salary is the escalating cost of healthcare. As medical expenses continue to rise, workers anticipate increased healthcare needs with age, potentially eroding their retirement savings.  

According to the PricewaterhouseCoopers’ (PwC) Health Research Institute report, healthcare costs are projected to rise significantly in 2025, with an 8% increase expected for the group market and a 7.5% increase for the individual market. These projections represent the highest levels seen in 13 years, matching the 2023 estimate and marking the largest projected increase since 2012. The substantial growth in healthcare costs is attributed to various factors, including inflationary pressures on providers, rising prescription drug spending (particularly for high-cost medications like GLP-1 drugs), and increased utilization of behavioral healthcare services. 

Desire for Work Life Balance 

Another factor driving this preference is the desire for work-life balance and overall well-being. Employees are increasingly valuing benefits that support their physical, mental, and financial health. The NFP’s 2024 Benefits Trend Report found that 38% of workers express a desire for access to mental health and other services through work. This trend reflects a growing awareness of the importance of holistic wellness in the workplace. 

Rising Cost of Living 

Lastly, the rising cost of living and economic uncertainties have led many workers to prioritize long-term financial security over immediate cash gains. Voluntary benefits like disability insurance and critical illness coverage provide an additional safety net that employees find increasingly attractive in an unpredictable economic climate. For HR professionals and employers, understanding these shifting preferences is crucial. 

Popular Employee Benefits 

With healthcare costs projected to rise significantly in 2025, offering the bare minimum of employee benefits will simply not cut it anymore. Job seekers, especially in high-demand positions, already expect work benefits like healthcare and retirement, but what do employees actually need? Let’s look at some of the most popular employee benefits you can offer. 

Health Insurance Coverage 

Health insurance remains the cornerstone of employee benefits packages. According to a survey by Clutch, 55% of employees consider health coverage the most important factor for job satisfaction. The rising cost of healthcare makes employer-sponsored plans increasingly valuable. In 2022, the average cost of healthcare premiums for an American family exceeded $22,000, highlighting the financial burden individuals face without employer support. 

For employers and HR professionals, providing competitive health insurance offers multiple advantages. It can reduce absenteeism, as healthy employees are more present and productive. Additionally, it serves as a powerful recruiting tool, often tipping the balance in favor of companies that offer superior health plans. 

Importantly, robust health insurance benefits contribute to workforce stability. Employees with comprehensive coverage are more likely to stay with their current employer, which reduces turnover costs. This retention effect is significant, with one report indicating that organizations offering benefits see a 138% reduction in employee turnover compared to those that don’t. 

Remote Work Arrangements 

Adding remote work options to your workplace benefits package can significantly boost employee attraction and retention. Over the past decade, the preference for flexible work environments has skyrocketed, with remote work increasing by 159% according to Global Workplace Analytics. 

A Buffer survey revealed that 99% of respondents want to work remotely at some point in their careers, highlighting the importance of incorporating these options into your company’s employee attraction strategy. This in itself is reason enough to implement remote work policies. 

Even beyond that, remote work arrangements offer numerous advantages for both employers and employees. For your company, it can lead to reduced overhead costs and access to a wider talent pool. Employees often report improved work-life balance and increased job satisfaction. 

Flexible Hours 

Including flexible hours as part of your workplace benefits package can significantly enhance employee satisfaction and productivity. Research shows that 96% of U.S. employees desire flexibility, yet only 47% currently have access to it. This gap presents a prime opportunity for you to differentiate your company in the job market. 

Implementing flexible hours allows your employees to adjust their work schedules to better accommodate personal needs and preferences. This arrangement can take various forms, such as flextime, compressed workweeks, or core hours with flexible start and end times. The key is to provide options that align with both your business needs and employee preferences. 

For your employees, flexible hours mean improved work-life balance, reduced stress, and increased job satisfaction. For your company, it means enhanced productivity, fewer distractions, lower absenteeism, and improved talent retention. In fact, 76% of employees state they would stay longer with companies offering flexible work arrangements. 

Student Loan Assistance 

Offering student loan assistance as one of your voluntary benefits can significantly boost recruitment and retention efforts. According to SHRM, only 8% of employers provided student loan contributions in 2020, which presents a unique opportunity for your company to stand out in the job market. Student loan assistance programs can be implemented in the form of: 

• Direct repayment plans: You contribute a set amount monthly towards employees’ loans. 
• Matching contributions: Similar to 401(k) matches, you match a percentage of employees’ loan payments. 
• Benefit trade-ins: Employees can convert unused PTO into loan payments. 

The CARES Act allows you to provide up to $5,250 annually in tax-free student loan payments per employee through 2025. This tax advantage makes student loan assistance an attractive workplace benefit for both you and your employees. 

Pet Benefits

With their increasing popularity, pet benefits are one of the best employee attraction and retention strategies right now. With 23 million households adopting pets during the first year of the pandemic, and about 40% of dog owners choosing pets over parenthood, you can no longer afford to overlook pet-related perks.  

About 51% as employees say pet insurance could impact their decision to take a job. While only 24% of employers currently offer pet insurance, 22% of HR professionals report receiving requests for this benefit. By providing pet insurance, you demonstrate your commitment to employees’ overall well-being and recognize the emotional significance of pets in their lives. 

Beyond insurance, consider offering additional pet benefits such as: 

• Paid time off for pet emergencies 
• Assistance with pet boarding for traveling employees 
• Flexible time for pet-related appointments 
• “Pawternity” leave for new pet owners 

Implementing pet benefits can also boost workplace morale and productivity. Pet-friendly policies, such as allowing pets in the office, can reduce stress and absenteeism and increase job satisfaction. Most employers are surprised to learn that 71% of pet owners would prefer a pet-friendly office over an on-site game room. 

Embracing the Future of Employee Benefits 

Employee benefits have evolved and are no longer limited to traditional offerings. As the workforce continues to change, companies must adapt their HR strategies to meet evolving employee needs and expectations. From comprehensive health coverage to innovative perks like pet insurance and student loan assistance, the range of benefits that can attract and retain top talent continues to expand. 

Don’t let your company fall behind in the competition for talent. Take the first step towards revolutionizing your benefits package and boosting employee satisfaction. Visit petbenefits.com to explore innovative pet-related perks that can set your organization apart and create a more engaged, loyal workforce. Your employees—and their furry friends—will thank you.