The Value of Employee Benefits

Your company needs quality employees to support customers and grow your business. Offering competitive employee benefits is one of the leading ways to attract top talent to join your team, keep your best employees long term, and build a workplace culture that promotes and fuels growth.  Health-related benefits remain a top employer priority, and medical, dental and vision coverage are common parts of competitive benefits packages. Offering a robust benefits package isn’t just good for employees, it’s good for business. In the U.S., employers may lose up to an estimated $225 billion in productivity each year as workers spend time distracted by personal financial concerns. The value of employee benefits in a comprehensive package can provide significant and sometimes overlooked advantages that go far beyond the immediate cost.

Preventive benefits help address health needs earlier

Benefits like medical insurance and dental and vision coverage, feature a range of preventive screenings that can keep employees healthy. These routine visits may catch health issues early and may prevent small issues from becoming major illnesses. Usually, they are offered at no or low cost to employees and their covered dependents. If health problems are caught early, treatment costs are less expensive, providing savings for employees and employers. Providing ample health coverage allows employees to focus on productivity and can lead to a more positive mental outlook on the business. KFF reports that 36% of adults say that in the past 12 months they skipped or postponed getting the health care they need because of cost. Employers can meet the diverse needs of employees by offering a variety of plans with different features and coverage options.

Employees who feel secure are more productive

Employees report that they spend several hours every week thinking about their health and financial needs. A recent workplace benefits study reports that 66% of employees are stressed about their financial situation, and 76% believe that the cost of living is outpacing growth in their income. Employers can provide benefits that help employees improve their well-being, including their social, career, financial, community and physical needs. Top coverage choices in these areas include medical, dental and vision benefits. Other valued benefits are student loan repayment assistance, tuition reimbursement, financial planning, saving for retirement and work flexibility. Benefits that help employees with their health and finances can resolve their stress and worries, allowing them to focus more on their work and productivity.

Engaged employees tend to stick around

In today’s evolving workplace, employee benefits have become a cornerstone of successful business strategy. Benefits are no longer seen as optional perks and companies should look at offering robust benefit packages that meet diverse needs that take care of employees. Research shows that competitive, well-communicated programs reduce costly turnover and lift performance, with employees who feel cared for are 1.3 times more likely to stay with the company and are 1.2 times more productive. Employees are far less likely to leave a job where their well-being is prioritized.

The key is for companies to take an active role in determining which benefits matter most to their employees. Companywide surveys, conversations with managers and their teams, and town halls with open communication can all assist with this effort. Communicate with employees what their options are and urge them to take advantage of their benefits. Providing benefits to employees demonstrates that the company values their well-being both on and off the clock and helps businesses remain competitive with other companies to capture and retain top talent.

Sources and References:
SHRM 2025 Annual Benefits Survey
CDC Foundation: Illness and Injury Cost U.S. Employers 225.8 Billion Annually
Kaiser Family Foundation: Americans’ Challenges with Health Care Costs
2024 Workplace Benefits Report, Bank of America Corporation: Employee Financial Wellness in America