If you think a bigger paycheck is the ultimate key to employee happiness, a staggering 80% of your workforce would politely disagree, preferring better benefits instead.
Key Takeaways
- 80% of employees would choose additional benefits over a pay raise
- 60% of people report that benefits and perks are a major factor in considering a job offer
- 79% of employees prefer new or additional benefits to a pay increase
- Employers pay an average of 70.4% of total compensation in wages
- Legally required benefits account for 7.1% of total compensation costs
- The average cost of health insurance for a family plan is over $22,000 annually
- 50% of employees with high benefit satisfaction are very satisfied with their jobs
- 81% of employees who can see their benefits' value are more productive
- Companies with high employee engagement see 21% higher profitability
- 85% of large employers offer some form of telehealth benefit
- 56% of employees say that a wellness program has improved their health
- 96% of companies offer at least one type of mental health benefit
- 67% of private-industry workers have access to employer-provided retirement plans
- 55% of employees participate in a 401k or similar plan
- 94% of employees have access to paid holidays
Employees overwhelmingly prefer strong benefits packages over higher salaries for job satisfaction and retention.
Costs and Financials
1Employers pay an average of 70.4% of total compensation in wages
Verified2Legally required benefits account for 7.1% of total compensation costs
Verified3The average cost of health insurance for a family plan is over $22,000 annually
Verified4Employers pay an average of $13.39 per hour worked in benefits for state and local government workers
Directional5Retirement and savings benefits cost employers an average of $1.36 per hour worked
Single source6Insurance benefits account for 7.5% of total employee compensation
Verified7The average employer contribution to a 401k is 4.7% of an employee’s salary
Verified8Companies spend an average of $1,200 per employee on training and development annually
Verified9Paid leave costs employers an average of $3.01 per hour worked in private industry
Directional10Employees contribute about 17% of the premium for single coverage health insurance
Single source1128% of total compensation costs in private industry go toward benefits
Verified12Large firms pay approximately $21,000 for family health coverage
Verified13The average cost of providing workers' compensation is 1.2% of total compensation
Verified14Social Security and Medicare taxes account for 6.2% of compensation costs
Directional15Small businesses spend 25.5% of total compensation on benefits
Single source16The administrative cost to manage benefits is roughly $150 per employee per year
Verified17Unemployment insurance costs average 0.2% of total compensation
Verified18Employer spending on supplemental pay averages $1.39 per hour worked
Verified19Spending on mental health benefits has increased by 15% since 2020
Directional20Average yearly deductible for single health coverage is $1,735
Single source21Employers spend an average of $600 per employee on wellness programs
Verified2252% of companies increased their benefits spending in the last year
Verified23Benefits for union workers represent 38.6% of total compensation
Verified24Disability insurance costs average $0.15 per hour worked
Directional25Defined benefit pension costs for private industry are $0.62 per hour worked
Single source26Defined contribution plan costs for private industry are $0.74 per hour worked
Verified27Life insurance benefits cost an average of $0.05 per hour worked
Verified28The cost of family health premiums has risen 47% over the last decade
Verified2918% of small businesses offer no benefits due to high costs
Directional30Tuition reimbursement programs have an average cap of $5,250 per year for tax tax-free status
Single sourceCosts and Financials Interpretation
Behind every paycheck's facade of generosity lies a silent, staggering orchestra of premiums, taxes, and 401(k) matches, where your boss, while quietly seething over the $22,000 family health tab, is still somehow wondering why you aren't more loyal.
Employee Preferences
180% of employees would choose additional benefits over a pay raise
Verified260% of people report that benefits and perks are a major factor in considering a job offer
Verified379% of employees prefer new or additional benefits to a pay increase
Verified457% of job seekers say benefits and perks are among their top considerations before accepting a job
Directional548% of employees say that perks like gym memberships and free snacks are important to them
Single source692% of employees say that employee benefits are important to their overall job satisfaction
Verified736% of employees would accept a lower salary in exchange for better benefits
Verified872% of employees say that having a customized benefits package would increase their loyalty
Verified940% of workers would leave their current job for one with better benefits
Directional1083% of employees say health insurance is the most important benefit
Single source1111% of employees prioritize student loan repayment assistance above all other benefits
Verified1231% of employees are satisfied with their current benefits package
Verified1368% of millennials say that benefits are a key factor in choosing an employer
Verified1454% of employees would take a job that paid less but offered better benefits
Directional1525% of employees state that flexibility is the most important non-monetary benefit
Single source1644% of employees prefer a choice between multiple health plans
Verified179% of employees value pet insurance as a voluntary benefit
Verified1858% of employees want their employers to provide more resources for financial wellness
Verified1964% of employees say that benefits are more important to them now than they were before the pandemic
Directional2017% of employees would trade a salary increase for more paid time off
Single source2142% of employees say they would feel more appreciated if their benefits were more tailored to their needs
Verified2275% of employees are more likely to stay with their employer because of their benefits program
Verified2352% of employees prefer remote work options as a primary benefit
Verified2434% of employees value child care assistance as a top benefit
Directional2514% of Gen Z employees prioritize mental health days over salary increases
Single source2649% of employees would stay at their current job if they had better professional development benefits
Verified2738% of employees value life insurance as a core component of their package
Verified2828% of employees say legal insurance is a benefit they would use if offered
Verified2961% of employees want more transparency regarding their benefits costs
Directional3055% of employees prefer vision and dental insurance over extra vacation days
Single sourceEmployee Preferences Interpretation
The modern workforce has declared, with overwhelming and often contradictory clarity, that while a paycheck buys their labor, a thoughtful and flexible benefits package is what actually wins their heart, mind, and long-term loyalty.
Health and Wellness
185% of large employers offer some form of telehealth benefit
Verified256% of employees say that a wellness program has improved their health
Verified396% of companies offer at least one type of mental health benefit
Verified424% of employees have used an Employee Assistance Program (EAP)
Directional581% of companies offer dental insurance to their employees
Single source667% of firms provide vision insurance as a benefit
Verified740% of employers offer on-site or virtual fitness classes
Verified852% of employees say they have access to a health savings account (HSA)
Verified971% of companies offer life insurance as a standard benefit
Directional1045% of workers say that their employer provides mental health resources
Single source1113% of employers offer on-site medical clinics
Verified1230% of employees participate in employer-sponsored health screenings
Verified1362% of companies offer short-term disability insurance
Verified1454% of companies offer long-term disability insurance
Directional1512% of employers offer critical illness insurance
Single source1635% of employees use a Flexible Spending Account (FSA) for healthcare
Verified1722% of companies offer health coaching services
Verified1850% of employees say that their work-life balance has improved due to wellness perks
Verified1915% of employers provide standing desks as a health benefit
Directional2028% of employees have access to smoking cessation programs through work
Single source219% of employers offer nap rooms for employee rest
Verified2243% of employees say they would use mental health apps if provided by their employer
Verified2361% of employees report high stress levels at work
Verified2438% of workers feel that their health insurance coverage is insufficient
Directional2519% of employers offer weight management programs
Single source2647% of employees say that healthcare is their most expensive benefit
Verified2755% of companies offer flu shot clinics on-site
Verified2820% of employers offer yoga or meditation sessions
Verified2968% of employees believe that health benefits are better today than 5 years ago
Directional3031% of employees say that physical health affects their productivity
Single sourceHealth and Wellness Interpretation
Employers have constructed a sprawling buffet of well-intentioned benefits, yet many employees are still quietly packing a cafeteria lunch of stress and unmet needs.
Policy and Participation
167% of private-industry workers have access to employer-provided retirement plans
Verified255% of employees participate in a 401k or similar plan
Verified394% of employees have access to paid holidays
Verified477% of workers have access to paid sick leave
Directional523% of employees have access to paid family leave
Single source611% of workers participate in an employee stock purchase plan (ESPP)
Verified756% of companies offer tuition reimbursement
Verified841% of companies offer flexible work schedules
Verified947% of employers offer remote work as a policy
Directional108% of employees have access to student loan repayment benefits
Single source1114% of employers offer child care subsidies
Verified1234% of workers have access to a defined benefit pension plan
Verified1326% of employees are enrolled in high-deductible health plans (HDHPs)
Verified144% of employers offer unlimited paid time off (PTO)
Directional1592% of full-time workers have access to medical benefits
Single source1622% of part-time workers have access to medical benefits
Verified1759% of employees understand how their benefits are calculated
Verified1818% of employees have access to legal service benefits
Verified1948% of employees use their full vacation time each year
Directional2012% of employers offer sabbatical leave
Single source2129% of workers take advantage of floating holidays
Verified2215% of employees choose voluntary benefits like accident insurance
Verified237% of employers offer adoption assistance
Verified246% of employers offer gender-affirming care benefits
Directional2533% of employees participate in a health savings account (HSA)
Single source2610% of employers offer commuting subsidies
Verified2752% of employees say their benefits information is easy to access online
Verified2825% of employees feel that their benefits are not communicated well
Verified2961% of employees use a mobile app to manage their benefits
Directional3020% of employers offer financial coaching as a benefit policy
Single sourcePolicy and Participation Interpretation
While American workplaces have become quite generous with the staples like paid holidays and retirement plans, the real competitive edge—and glaring gaps—lie in the modern essentials like remote work, family support, and student loan aid, which remain frustratingly rare.
Retention and Satisfaction
150% of employees with high benefit satisfaction are very satisfied with their jobs
Verified281% of employees who can see their benefits' value are more productive
Verified3Companies with high employee engagement see 21% higher profitability
Verified469% of employees say they would work harder if they felt their efforts were better recognized through benefits
Directional5Employee turnover is 14% lower in companies with strong benefits packages
Single source660% of employees stay with their current employer because of the retirement plan
Verified778% of workers said that benefits are a reason they stay with their employer
Verified81 in 3 employees left a job because they felt their benefits were inadequate
Verified955% of employees are more likely to stay at a job with flexible work hours
Directional10Employee satisfaction scores are 20% higher when mental health support is provided
Single source1166% of employees would recommend their company to others if they had better benefits
Verified1243% of employees feel that their employer doesn't care about their well-being
Verified13High-quality benefits lead to a 56% increase in employee performance
Verified1470% of employees say that their benefits make them feel valued
Directional15Stress levels are 25% lower in employees with comprehensive health benefits
Single source16Lack of paid sick leave increases employee turnover by 20%
Verified1751% of employees are looking to leave their jobs due to burnout
Verified18Companies offering remote work have 25% lower turnover than those that don't
Verified1989% of workers at companies that support well-being initiatives are likely to recommend their company
Directional2046% of employees feel that benefits are the most important factor in their loyalty
Single source2158% of employees feel satisfied with their current work-life balance benefits
Verified22Employee retention increases by 30% when professional development is offered
Verified2374% of employees would stay longer if their career growth was invested in
Verified2463% of employees who left their jobs cited lack of benefits as a primary reason
Directional2545% of workers say that a lack of recognition in benefits makes them look for new jobs
Single source26Companies with flexible benefits have 10% higher employee net promoter scores
Verified27Paid parental leave leads to a 20% increase in female employee retention
Verified2854% of employees say that pet-friendly offices increase their satisfaction
Verified2933% of employees say that financial stress affects their work performance
Directional3091% of employees feel more motivated when their employer offers wellness perks
Single sourceRetention and Satisfaction Interpretation
Treat your benefits package like a beloved but demanding houseplant: when you consistently nurture it with visible value, flexibility, and genuine care, the whole organization blooms with satisfaction, productivity, and profit.
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