Employee turnover is a costly issue, both financially and operationally. High-performing employees often have options, and benefits play a critical role in their decision to stay. While salary remains important, comprehensive benefits packages can outweigh marginal pay increases elsewhere. Retirement plans, flexible health insurance options, paid time off, and wellness incentives are often cited as deciding factors by employees considering a move. A 2023 SHRM study found that 61% of workers view benefits as a top reason for staying with their current employer, highlighting their direct impact on retention strategies.
Offering benefits that reflect employee priorities signals respect and long-term investment. Health coverage remains central, and many companies are now exploring cost-effective alternatives to traditional group plans. One emerging question among decision-makers is, what is a level-funded health plan? This hybrid model blends features of fully insured and self-funded plans, providing cost predictability while potentially lowering expenses. When employees see that their employer is proactively offering competitive, practical solutions, it builds trust and reduces the appeal of offers from other organizations.
The most effective benefits strategies are those based on actual employee feedback. Regular surveys and exit interviews can reveal gaps in current offerings and provide data-driven direction for adjustments. Retaining top talent requires aligning benefits with what employees genuinely need, whether it is better mental health coverage, dependent care support, or flexible work arrangements. Benefits are not static; they must evolve alongside workforce expectations. Employers who adapt their packages based on ongoing input send a clear message that employee satisfaction is a sustained priority. Check out the infographic below for more information.