All evidence points to employee benefits programs attracting highly qualified candidates. Employee benefits have become a leading motivator for highly qualified candidates accepting a position. According to the Bureau of Labor Statistics, insufficient employee benefits may affect retention. An average of 3.3% of employees leave their job each month in 2021. Employee benefits programs increase employee satisfaction in these three areas.
1. Feeling Appreciated Turns into High Retention Rates
Providing employees with a benefits package helps them to feel appreciated. This sense of appreciation is not just emotional—it translates directly into loyalty and retention. When an employee feels appreciated by the employer, they feel more loyal to the employer.
These feelings of loyalty can help to cut down on attrition rates. Attracting highly qualified candidates that turn into employees is one thing; keeping them is another.
A quality employee benefits package can help to keep your employees. Beyond standard offerings like healthcare and retirement plans, companies can include perks such as professional development stipends, wellness allowances, or even student loan repayment assistance.
These benefits show employees that the company is invested in their overall life and career, not just the tasks they perform at work. A recent survey from Indeed found that 67% of employees feeling “appreciated” would stay with their current employer even if offered a higher salary elsewhere.
2. Believing in the Corporate Mission Makes Employees Advocates
Employees that are happy with their benefits become advocates for the business. When they feel supported and fairly compensated, they are more likely to speak positively about the company, both inside and outside of work.
According to Indeed, employees who rate their employee benefits programs as satisfactory or above also report that they believe in the work they do for the company. Employee satisfaction is critical to ensuring that employees represent your business enthusiastically.
An employee benefits program creates advocates for your business who are excited about doing their work. This kind of advocacy can strengthen your employer brand, making it easier to attract top talent.
More importantly, satisfied employees who feel their benefits and compensation package are fair work harder. They are also more engaged, which boosts productivity and contributes to a healthier work culture.
3. Work-Life Balance
Employee benefits like paid time off, sick leave, family leave, and other perks are a huge factor in employee satisfaction. These benefits are particularly important for attracting younger generations and mid-career professionals who value flexibility and mental well-being as much as job security.
Employees that can have the work-life balance that they need are more productive. Work-life balance benefits can drive up satisfaction rates significantly.
These benefits can help employees manage stress better, reducing unplanned days off and more. Flexible work arrangements, such as hybrid schedules or compressed workweeks, also support work-life balance without compromising productivity.
Ensuring your business has a benefits program can strengthen your organization by preventing burnout and fostering long-term loyalty. In fact, organizations known for supporting balance often see lower turnover rates, higher morale, and stronger team cohesion.
4. Connecting Employee Benefits Programs with Employee Recruiting Programs
Employee recruiting programs that highlight strong benefits packages can significantly improve hiring outcomes and retention rates. Just as benefits influence whether current employees stay, they also play a big role in a candidate’s decision to join your company.
When a recruitment process actively showcases benefits—whether in job postings, interviews, or onboarding—it communicates that the organization values its people from the start.
Well-integrated recruiting programs present benefits as part of the overall employee experience, not just a side detail. They can feature clear breakdowns of healthcare coverage, retirement contributions, wellness perks, and professional development support.
Sharing real employee testimonials about how these benefits have impacted their lives can make the offer even more compelling.
Today’s hiring market is competitive. Attracting the right talent requires that you offer more than a fair salary. The best and the brightest are looking closer at benefits packages before they make a choice. Learn more about how employee benefits programs can help your business.
