How Offering Benefits (and Providing More Choices) Can Help Recruiting and Retention

Recently, the unemployment rate has dropped to 4%, meaning that most people who want jobs already have them. While that’s good news for workers, it creates a tight labor market, leaving fewer available candidates for employers to recruit. As a result, three out of four companies face significant challenges when it comes to recruiting. 

With fewer candidates actively looking and job seekers having more options, companies must compete more aggressively to attract and retain employees. That competition goes far beyond pay—today's candidates are placing increasing value on benefits and workplace culture. 

However, as employee expectations continue to shift, benefits alone aren’t enough. Today's workforce also expects choices—flexibility to select benefits that fit their needs and lifestyle. This personalized approach not only helps employers stand out in the hiring process but also empowers employees, leading to higher satisfaction and stronger long-term loyalty.

Benefits matter more than ever in recruiting 

Finding qualified candidates with the right skills and experience remains a top challenge for 60% of talent acquisition professionals. With the hiring process becoming more competitive and expensive, companies are relying on benefits as a key differentiator—and it’s easy to see why. 

Candidates Are Looking for Total Compensation, Not Just Salary 

While pay remains the number one priority, employees are increasingly factoring well-being and work-life balance into their decisions when accepting a job. According to a Gallup study, 61% of employees now rate work-life balance and wellbeing as "very important," a notable increase from 53% in 2015. This shift reflects a growing demand for more than just basic health insurance, but for nontraditional benefits such as wellness programs and mental health support.

Candidates Prioritize Benefits Almost as Much as Pay

More than two-thirds of surveyed employees ranked healthcare benefits just behind salary in importance when weighing job offers. Even more telling, 78% said they would look for a new job if their benefits package didn’t meet their needs. In a competitive market, benefits often become the deciding factor when candidates compare multiple offers. A strong, flexible benefits package can be what tips the scales in your favor. 

Flexibility in Benefits Is Highly Valued

Workplace flexibility is about more than just remote versus in-office work. While most companies are reporting an even split between remote and in-office workers, the real challenge is making sure employees have flexibility in how they can access and customize their benefits. Employees want options that fit their personal circumstances, health needs, and lifestyles, which makes flexibility in benefits just as important as flexibility in the workplace. 

Your benefits package could be the reason top talent joins — or leaves — your company. 

Employer retention and the role of benefits

Recruiting is only half the battle and keeping great employees is just as important. With the average cost to hire a new employee sitting at $4,700, companies that invest in retention strategies can save significantly in the long run. One of the most effective ways to retain talent? You guessed it: offering strong, customizable benefits. 

Matching Benefits to Employee Needs Enhances Job Satisfaction 

Employees' needs vary—from single workers focused on preventive care, to parents needing dependent coverage, to older employees prioritizing retirement planning. Employees are far more likely to stay with companies that offer benefits that fit their specific personal and family needs. Offering customizable options from traditional health plans, to wellness perks, and family-friendly benefits shows employees you value their whole life, not just their work output. It’s a smart strategy: 73% of employees say they would stay with their employer longer if offered more benefits options. 

When employees see their employer investing in benefits that grow with them — like expanded family leave, fertility support, or elder care benefits — it builds trust, loyalty, and deeper connection to your organization. Employees who feel their employer cares about their long-term wellbeing and not just their productivity are more likely to stay and grow with your company.

Choice matters—Why flexibility in benefits is key

The best benefits are the ones that employees actually use and value. Offering choices allows employees to personalize their benefits to fit their health, family, and lifestyle needs.

It’s also a practical strategy for employers. Employee Satisfaction with benefits fell to 61% in 2023, down from 64% in 2022 — a clear sign that employers need to adapt to changing expectations. Giving employees a menu of options helps ensure they’re getting the benefits they actually want — not just the ones you assume they need.

Examples of Benefit Choices That Matter

Medical Care: Offer both traditional health plans and nontraditional options like HealthShares, which often come with lower monthly costs and greater flexibility.

Telehealth: Virtual care options allow employees to connect with doctors and specialists from anywhere, saving time and providing convenient access to care.

Mental Health: Go beyond a limited number of counseling sessions by including specialized therapy, stress management programs, and digital wellness tools to support ongoing mental health.

Wellness Perks: Offer options that fit different lifestyles, such as gym stipends, wellness apps, or general wellness stipends employees can apply to what matters most to them.

Health Savings Accounts (HSAs): Allow employees to set aside pre-tax dollars for medical expenses, helping them save while taking control of their healthcare costs.

Offering choices sends a clear message to both employees and candidates: you care about their individual needs. That message builds goodwill, improves job satisfaction, and boosts long-term retention. 

It also benefits employers directly, allowing you to focus your benefits budget on offerings employees actually use, instead of paying for programs that go unused. 



Your competitive advantage

As an employer, you’re juggling budgets, processes, and people management — all while trying to build a positive, productive culture. Offering flexible, customizable benefits is crucial and a strategic advantage that helps you attract great candidates, retain your top performers, and build a reputation as an employer that truly values your people.

When you offer benefits that employees actually want, and give them the power to choose, you’re not just building a better benefits package. You’re building a better workplace.