---
title: What Benefits are Most Important to Employees?
description: What Benefits are Most Important to Employees?
---

[Member News | CGCCUSA ](https://www.cgccusa.org/en/news)

# [What Benefits are Most Important to Employees?](https://www.cgccusa.org/en/news/what-benefits-are-most-important-to-employees)

 Written by [CGCC](https://www.cgccusa.org/en/news/author/cgcc) | December 4, 2020

**Source:** [Brio](https://www.briobenefits.com/what-benefits-are-most-important-to-employees/) Benefit Consulting  
**Published:** December 1, 2020

#### *The answers may surprise you*

This article was written by our friends at Fringe Benefit  
 Analysts, a valued UBA partner of ours based in Utah.

Offering employees benefits is an intricate balancing act of providing what  
 workers have come to expect from their employers, what they perceive to be  
 valuable for work-life balance and what expenses the business can justify to  
 shell out in perks to keep their personnel happy.

The term “total rewards” has gained steam in recent years to describe both  
 the benefits employees are traditionally offered, such as health insurance and  
 retirement options, and the more progressive perks that have been driven by the  
 Silicon Valley elite, such as free lunches and flexible hours. The right total  
 rewards strategy can attract top talent and keep valuable employees around for  
 the long haul. Really, the terms “benefits package” and “total rewards” come  
 down to semantics. But whatever you call it, the offering needs to make sense  
 for the employer as much as it needs to attract and retain key employees.

So, how are employers to juggle developing total rewards packages that are attractive to employees, and those looking to join the organization, while at the same time being kind to their balance sheets? A recent ***[employee benefits study by Fractl](http://www.frac.tl/employee-benefits-study/)*** may help guide decision makers in understanding what benefits are most important to employees today.

The survey asked 2,000 people to rank a list of 17 benefits. It asked them  
 to weigh how each benefit would impact their decision when choosing between a  
 high-paying job and a lower-paying job with better benefits. The choices that  
 made it in the top three spots come as little surprise, considering a changing  
 workforce that’s younger and more concerned with work-life balance than their  
 predecessors.

#### **One: Better Health, Dental and Vision Insurance**

Not surprisingly, health-related insurance tops the list with 88% of respondents saying they would consider a lower-paying job with better health insurance than a higher-paying job. It’s not just this study by Fractl that highlights the importance of insurance products that helps employees combat ballooning healthcare costs. Survey after survey shows that [***health***](https://www.fbabenefits.com/what-are-the-four-main-types-of-employee-benefits/) ***insurance is at the top of employees’ minds***—no matter their age.

#### **Two: Flexible Hours, More Vacation Time and Work-From-Home Options**

The study found that, after better health, dental and vision insurance,  
 employees want more flexible work arrangements that allow for more work-life  
 balance. Actually, “More Flexible Hours,” “More Vacation Time,” “Work-From-Home  
 Options” and “Unlimited Vacation,” were four different options that each made  
 it in the respective four spots under better health insurance. They are  
 compiled into one category here for their close correlation.

Unlimited vacation policies began as a then-controversial policy in Silicon  
 Valley—and have since spread throughout the country in both high- and low-tech  
 companies. [*Studies*](https://www.inc.com/magazine/201606/minda-zetlin/unlimited-vacation-benefits.html)*  
*show that these liberal leave policies only improve employee  
 productivity. And, there’s no denying that amid the COVID-19 pandemic,  
 work-from-home policies have been essential for employee safety. These largely  
 pandemic-driven policies will be reflected in the benefits employees prefer  
 going forward. In fact, in a different [*survey*](https://www.flexjobs.com/blog/post/survey-finds-varying-attitudes-millennials-older-workers-about-key-workplace-issues/)*,*  
 83% of Millennials (now 50% of the workforce) said work-life balance is the  
 most important factor in evaluating a potential job.

#### Three: Student Loan and Tuition Assistance

College is expensive. And it’s only growing more so. Therefore, it’s little surprise to see student loan and tuition assistance show up amid the most important benefits to employees.[* New data*](https://www.usnews.com/education/best-colleges/paying-for-college/articles/see-how-student-loan-borrowing-has-risen-in-10-years) *from U.S. News* shows that average student loan debt has been on the rise for the past 10 years. Those who graduated in 2019 borrowed, on average, $30,062. That’s up from the $23,765 average owed by the graduating classes in 2009. Student loan and tuition assistance can help ease the burden of burgeoning college costs and lead to more satisfied and loyal employees.

#### **Other Considerations**

While the Fractl study provides a good framework for determining what may be on your employees’ “benefits radar,” there are some other important considerations. First and foremost, the demographic of your employees will influence which benefits are most important to them. Much of the work world has made efforts to accommodate more flexible work arrangements asked for by Millennials. But as Gen Z workers begin to join the workforce, they’re bringing their own [*unique set of expectations*](https://hbr.org/2020/06/what-your-youngest-employees-need-most-right-now)*.*

Second, a good total rewards strategy needs to attract and retain talent, while also protecting your business interests. In other words, employees may ask for student loan and tuition assistance, but if the financial obligation strains your balance sheet, it’s likely not worth the financial risk. Likewise, virtually any benefit you adopt will need to be sustained as your business grows.

Third, understand employment laws and regulations. Some benefits are great perks to help keep employees happy—others are legally required of certain employers. Ensuring federal and state compliance is a huge responsibility that may warrant a little extra help.

For questions regarding this article, kindly contact Gui Wu ([gwu@briobenefits.com](http://gwu@briobenefits.com))

[View full post](https://www.cgccusa.org/en/news/what-benefits-are-most-important-to-employees)

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