Employers Struggle to Align Benefits with Employee Preferences, Survey Reveals

What's Happening?

A recent survey conducted by HUB International highlights a significant disconnect between what employees value in workplace benefits and what employers perceive as important. The 2025 U.S. Workforce Vitality Gap Index surveyed 1,500 full-time U.S. employees and found that 41% prioritize work-life balance and flexibility over other benefits, including salary. However, only 22% of HR and finance decision-makers recognized these as top priorities. The survey also revealed that financial wellness is a major concern, with 52% of employees aged 35-44 and 51% of those aged 18-24 reporting that financial issues affect their productivity. Despite this, employers may be underestimating the impact of financial stress, particularly related to student debt. Healthcare benefits also emerged as a critical area needing better alignment, with 41% of workers citing health concerns as affecting absenteeism, yet only 20% of employers acknowledged its impact on productivity.

Why It's Important?

The findings underscore the importance of aligning employee benefits with actual workforce needs to enhance retention, productivity, and workplace culture. As companies compete for talent, understanding and addressing employee priorities can be a decisive factor. The misalignment in benefits can lead to decreased employee satisfaction and increased turnover, which are costly for businesses. Moreover, the emphasis on financial wellness and healthcare benefits highlights the growing need for comprehensive support systems that address the holistic well-being of employees. Employers who fail to adapt may struggle to maintain a competitive edge in attracting and retaining skilled workers.

What's Next?

Employers are likely to reassess their benefits offerings to better align with employee expectations. This may include increasing flexibility in work arrangements and enhancing financial wellness programs. Companies might also consider innovative solutions like converting unused paid time off into financial benefits, as some are already doing. Additionally, there may be a push towards better communication and education about available benefits to ensure they are fully utilized by employees. As the workforce continues to evolve, ongoing research and adaptation will be crucial for employers to meet the changing needs of their employees.