Back to basics: Traditional benefits are still top priority for employees

Worker recruitment and retention remain a key focus of employers in the new year. With 4 in 10 employees willing to leave their current job for one with better benefits, more than 60% of businesses have responded by changing their benefit offerings in the past year.

In a Forbes Advisor survey:

• Forty percent of employers say they believe workers leave their jobs to find employment that offers better benefits.
• More than half of American workers report being content with the benefits that their current employer offers.
• One in 10 workers would take a pay cut to have access to better benefits.
• More than 30% of 18- to 41-year-olds are most concerned with having pet insurance available as a benefit.
• Nearly 40% of 42– to 57-year-olds are most likely to want mandatory paid time off from their employer.
• Moe than 80% of employees older than 42 are looking for roles that include employer-covered health care.

The challenge for employers is to align their benefit offering with worker needs and wants.

“Employers were mostly in line with naming the top three benefits that employees want, but employers’ understanding of employees’ preferred benefits drops off after that,” according to the survey report. “Notably, employers undervalue the need for mandatory paid time off and overvalue employee discounts. While 30% of employers believe the latter is important, it doesn’t seem to be a priority for employees.”

Employees ranked these five benefits as most important:

• Employer-covered health care. Two-thirds of employees and 68% of employers believe this to be the most important benefit.
• Life insurance. Forty-five percent of employees and 43% of employers named this as a top benefit.
• Pension and retirement plans. One-third of both employees and employers agree that planning for the future is vital.
• Mandatory paid time off. Employees value mandatory paid time off more highly than employers are aware. Thirty-one percent of employees named this a top benefit, but it didn’t reach the top five benefits among employers.
• Mental health assistance. One-third of employers named this a top benefit while only 23% of employees listed it.

Small businesses often have less leverage than larger businesses to offer some of the shinier employee benefits big companies love to tout, such as gym discounts, in-office coffee bars and exotic company retreats. However, the data show that these aren’t top priorities for workers.

“Cover the basics,” the report concludes. “Find an HR system that will help you coordinate the provision of health care, retirement plans and life insurance. Beyond that, prioritize the benefits that support work-life balance for employees and showcase your understanding of their needs as a whole person beyond their role in your company.

Read more: The 10 most desired employee benefits in the U.S.

“By listening to what employees truly want and saving money on the flashy, unnecessary perks, small business employee benefits can compete with bigger companies and create a workplace that attracts, supports and retains employees.”