The war for talent isn’t slowing down. In fact, a recent Gallup study showed more than half of respondents are actively exploring new job opportunities. So, how do you retain top talent in a market in which employees are rethinking where, how and why they work?
The answer lies in offering benefits that meet today’s expectations. Overall, employees tend to prioritize two things: health care and flexibility. However, a well-rounded benefits package also includes mental health, financial stability, time off and growth opportunities.
Here’s a look at the key benefits businesses should provide to retain employees.
Health care that goes beyond the basics
Let’s start with the essentials. A poll conducted by Seven Letter Insight found a staggering 96% of Americans believe it is important for a job to offer health insurance. Additionally, by nearly a two-to-one margin, respondents said they would not accept a job that does not offer health insurance. All that to say, health coverage is no longer a perk, it’s a necessity. Today’s workers also are looking beyond basic plans. They want access to mental health services, dental and vision coverage, and telehealth options that support their overall health. Businesses that offer comprehensive, affordable plans send a clear message: we care about you and your family.
Remote work is here to stay–and employees expect it
It’s not a trend, it’s the new normal. According to a report by FlexJobs, 82% of employees prefer flexible or remote work over rigid, in-office schedules. And in many cases, it’s a deal-breaker.
Flexibility doesn’t mean productivity drops. With the right tools and expectations, hybrid work can boost productivity. Remote and hybrid options also expand access to talent across geographies and accommodate caregivers, working parents, and those seeking better work-life balance. Businesses should provide clear hybrid policies, effective communication tools, and support systems, such as home-office stipends, that make remote work sustainable.
Time off that reflects real life
Paid time off and vacation time is an essential aspect of employee job satisfaction, and it’s also consistently ranked as one of the most important benefits. In some industries, the traditional PTO of 10 days has evolved to unlimited paid time off.
While unlimited PTO means greater flexibility, it’s important to communicate expectations—some employees may take too little time off, which can lead to burnout; while others may take more than anticipated. There is also a rise in mental health days, company-wide breaks, and more inclusive leave policies, such as sabbaticals or bereavement.
One-size-doesn’t-fit-all, let employees choose their perks
Employees are individuals, and they expect benefits that reflect that. The rise of choose-your-own-perk programs shows that employees want value and the ability to customize. For one employee, it might be pet insurance and for another, it could be a professional development stipend. Allowing employees to tailor their benefits package increases satisfaction and shows respect for personal priorities.
Money matters–help employees reduce financial stress
Whether it’s student loans, credit card debt, or lack of retirement savings, money worries follow employees into the workplace. That’s why more businesses offer emergency savings programs and financial literacy tools.
Plus, offering to match 401(k) contributions up to a certain amount is appealing to job seekers, and it delivers a compelling reason for employees to stay with their employers for the long term.
A clear path forward keeps employees around
Supporting the personal and professional growth of employees is a critical step in attracting and keeping the best workers. Employees who don’t see a path forward will look elsewhere.
Offering professional development opportunities through online learning platforms, mentorships or leadership training, shows employees that you’re invested in their future—not just their current role. Upskilling also benefits the business, closing future skills gaps and keeping your team agile in a fast-paced world.
What retention really looks like in 2025
If the last five years taught us anything, it’s that employees are rethinking what matters. Today, they want security, flexibility and opportunity, and they’re choosing employers who deliver.
By focusing on the benefits that matter most, starting with robust health insurance and flexible work, you’ll do more than retain your top performers. You’ll build a culture where people want to stay.
Denise Stefan
Denise Stefan is president of Engage Insurance Agency. Engage PEO, based in Fort Lauderdale, Fla., delivers comprehensive HR solutions to small- and medium-sized businesses, sharpening their competitive advantage. It is a market leading, national PEO licensed in all states with licensing requirements and serves clients in all 50 states. It is among less than 3% of PEOs that are ESAC certified and hold the CPEO designation by the IRS.
