Benefits are critical to employee engagement and loyalty. In fact, 55 percent of employees would consider taking a job with lower pay to gain better benefits. More than one-third of employees say that if their employer offered a better benefits package, they'd be more likely to stay in their jobs.
A comprehensive benefits package includes traditional benefits such as health insurance, paid time off, and retirement. It also includes perks such as the use of company cars or employee discount programs. Finally, the benefits package may include voluntary benefits or perks such as student loan payoff assistance and corporate discounts that allow employees to buy goods and services at reduced rates.
Voluntary benefits empower employees to create a personalized package that meets their needs. The modern workforce is diverse and may span [six generations](https://hbr.org/2024/04/leading-the-6-generation-workforce), from the Silent Generation (born 1928 to 1945) to Generation Alpha (born after 2010). In between are the Boomers (born 1946 to 1964), Generation X (born 1965 to 1980), Generation Y, also known as Millennials (born 1981 to 1996), and Generation Z (born 1997 to 2009). Individuals of different generations have different priorities and needs and prefer a different portfolio of benefits.
## Employee Preferences
Employees consider four types of benefits as being critical. The first is time off policies, which help promote work-life balance. Time off is vital for [employees' mental and physical health](https://employers.workingadvantage.com/blog-content?item_id=aaac1fb7-b021-4406-aff8-783acb7cda15). Offering paid time off also shows that you care about your employees as individuals. Paid time off policies differ within each organization; many organizations link the amount of PTO with years of service. Some employers give employees a bank of time to use for any purpose they desire, while others provide specific leave time for sickness, vacation, and other issues.
Employees also expect comprehensive healthcare, including medical, dental, and vision benefits. These benefits give employees peace of mind and allow them to focus on work without worrying about how they will access medical care. Because they encourage employees to have regular preventive checkups, they decrease absenteeism.
Retirement plans, such as 401(k}s, ESOPS, and SIMPLE IRA plans, are also important in recruitment and employee retention. They improve employee morale and ensure financial security for employees and their families. When employees feel financially secure, they can focus better on their work. Offering a retirement plan can also lower your company's tax burden.
More than [60 percent of employees](https://www.sefe-mt.com/careers/blog/which-workplace-perks-matter-most-employees/#:~:text=The%20right%20perks%20can%20have,increased%20loyalty%20and%20reduced%20turnover.) say that perks improve their job satisfaction. Employees value perks such as flexible hours, employee discounts, on-site parking, [recognition programs](https://employers.workingadvantage.com/blog-content?item_id=dd1b40f8-fc20-423b-a9a7-49adb4072719), low-cost on-premises child care, free parking, gym memberships, or fresh fruit available in break rooms.
## Voluntary Benefits and Beyond
Voluntary benefits enable employees to build a benefits package unique to their needs. Among the most popular voluntary benefits are:
- Those that promote financial protection for their families, such as life and disability insurance, and specialty types of health insurance beyond the basic, such as accident insurance or critical illness insurance.
- Mental health benefits, such as employee assistance programs, telehealth counseling, meditation spaces, well-being apps, and free yoga.
- General [wellness](https://employers.workingadvantage.com/blog-content?item_id=ef601443-4f17-4097-9001-cd67ede054cc) benefits, such as discounted or free gym memberships and discounts on smartwatches, healthy meal kits, and workout equipment.
- Benefits supporting other personal challenges, such as identity theft protection, discounted legal services, making major purchases, and paying off student loans.
## The bottom line
Hiring and retaining top talent is key to your business's success. Workers today have choices about where to work. A comprehensive benefits package can help you attract workers and keep them satisfied. Satisfied employees are more loyal and productive, more creative, and better able to meet customer needs. In short, satisfied employees can help your business grow and be more profitable.
Today's workforce is also diverse culturally and generationally. An attractive benefits package for a worker in their 20s may look very different from one for a worker in their 70s or 80s. Likewise, an attractive benefits package for a married worker with children may differ from one for a single worker. The most competitive companies will offer an array of voluntary benefits so that employees can tailor their packages to meet their needs.
As employers continue to adapt to meet the needs of a diverse workforce, the trend toward personalized benefits will continue. Cutting-edge companies will also begin to offer more lifestyle benefits, such as financial support to set up a home office, discounts and help booking travel, and online fitness classes. Companies will continue to demonstrate that they value their workers as people. Work arrangements will continue to be flexible to allow for a greater work-life balance.
Working Advantage can help you launch a tailored employee benefits package to meet your employees where they are—now and in the future. Join more than 40,000 companies using the largest corporate discount program in the world and sign up for [Working Advantage](https://employers.workingadvantage.com/for_employers).
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