It's no secret we're in a historically tight labor market. There are currently 1.6 job openings for every unemployed American. On top of that, 4 million Americans are turning 65 each year and edging towards retirement. Your employees have options – and if they're not feeling valued, they might look for a change.

As an employer, how can you retain your best people, especially if you can't keep raising wages? Enter the competitive benefits package. Here's the math on how retirement benefits and health insurance can boost retention, saving you as much as hundreds of thousands of dollars in turnover costs.

Small businesses lag behind in benefits

At Gusto, we help more than 300,000 small and mid-sized businesses take care of their teams with payroll, benefits, and HR. We also have a team of economists who tap into the data on our platform to uncover unique, anonymized insights about the state of compensation, hiring, pay trends, and so on across the U.S.