Competitive employee benefits play a significant role in shaping today’s workforce. Studies have shown that employees are more likely to stay with companies that offer better benefits. In addition, it has been shown that this is one of the most important tools for better employee engagement and productivity in today's workplace.
This post explores how great employee benefits can impact the performance of small and mid-sized businesses (SMBs). We've rounded up trusted and reliable industry data and statistics on employee benefits to give you a quick insight into how employee benefit discourses have changed and how companies are adjusting to these changes.
1. Employee Engagement and Retention
12% of businesses are happy with current levels of employee engagement (CBI).
Retention (72%) and recruiting (58%) were the top reasons for increasing benefits (SHRM).
44% of businesses think improved employee engagement would lead to them being able to retain better, whilst 36% think it would have a positive impact on recruitment (CBI).
42% of businesses report that pension provision has a positive impact on employee retention (CBI).
It’s to the employer’s advantage, even for small businesses, to offer benefits in the quest to attract top talent and keep their good employees from jumping ship (Clutch).
77% of employees who understand their benefits offering said they saw themselves staying at their organization for the foreseeable future (Thomsons Online Benefits).
Employees who feel their rewards meet their needs are seven times more likely to be engaged with work compared to employees who don’t feel that way (Alight Solutions).
Roughly one-third of adults would leave their jobs for a higher-level position, a better company culture, or a shorter commute (Yoh).
Employees with meaningful work stay on the job 7.4 months longer than other employees, put in an extra hour a week, and take two fewer paid leave days a year (Betterup)
91% of employees who work in pet-friendly workplaces feel fully engaged with their work vs. 65% of those who don’t work at a pet-friendly workplace (Nationwide).
More than 70% of HR professionals believe outmoded work practices, sketchy career paths, and limits on advancement, development, and mentoring are impacting attrition, and 69% identified flexible work schedules, wellness programs, fast-track promotions, and other perks as problematic (Allegis Group).
2. Benefits and Compensation
80% of workers would keep a job with benefits rather than take one that offered more pay and no benefits (American Institute of CPA)
55% of employees would be somewhat likely to accept a job with lower compensation but a more robust benefits package (Aflac).
79% of employees cited a competitive benefits plan as an influencer, and 77% cited cost (Wellable).
More than 60% of employees would take a job with a lower salary for better benefits (Zenefits).
23% of full-time employees do not receive any benefits from their employers (Clutch).
52% of employees who aren’t satisfied with their benefits want more of a benefit they already have (Clutch).
32% of employees say that they feel neutral about, or are not satisfied with, the benefits they receive (Clutch).
Gen Xers are slightly more satisfied with their benefits than millennials (53% vs 52%), and 49% of boomers report they are satisfied with their benefits (LIMRA).
Over 50% of employees say they can’t access their benefits in the way they prefer, and 21% say they can easily access their benefits (Thomsons Online Benefits).
47% of employees want to receive rewards spontaneously (Xexec).
38% of employees want to receive rewards in exchange for good work (Xexec).
43% of employees said they would leave their current jobs for another that paid better (Ajilon).
44% of workers said they would leave their current job for one that pays more (OfficeTeam).
50% of adults would leave their current job for better benefits (Yoh).
44% of workers would leave their jobs for one with better pay (Robert Half).
3. Training and Development
51% of employees would quit their jobs if training were not offered (Udemy).
Offering career training and development would keep 86% of millennials from leaving their current position (Bridge).
If a job lacks growth opportunities and avenues for leadership development, 67% of millennials would leave that position (Bridge).
The top four reasons retail employees leave their jobs – are poor management, scheduling difficulties, lack of training, and falling wages (WorkJam).
92% of employees think workplace training impacts their job engagement positively (Axonify).
4. Work-Life Balance and Flexibility
45% of employees said they consider a prospective company’s work-life balance a crucial factor when researching a job (Lexington Law).
Workers who have a good work-life balance are 10% more likely to stay at their companies than those who don’t (TINYpulse).
Workers who are finding balance between their jobs and personal lives are twice as happy, more productive, and show greater loyalty to their employers than those struggling to find balance (Robert Half).
Among employees who take a week or more of vacation, 65% say they feel strongly about working for their organization a year from now, compared to 51% who don’t take a week off in the summer (O.C. Tanner).
63% of employees wouldn’t consider a job opportunity that offered fewer than 15 paid vacation days (Randstad).
52% of employees would rather celebrate rewards with their families than with colleagues (Xexec).
86% of employees between the ages 18-34 said they’d sooner sign a contract with remote work options (Robert Half).
65% of employees older than 55 said they’d sooner sign a contract with remote work options (Robert Half).
61% of workers left or considered quitting a job because it lacked work flexibility options (FlexJobs).
51% of employees would not consider a job that provides less flexibility than their current job (Alight Solutions).
42% of adults said they’d jump ship for a flexible work option (Yoh).
70% of millennials have considered leaving a job for another boasting of flexible work options, but just 50% of older workers have felt the same pull (FlexJobs).
More than 80% of millennials say they seriously consider how a position will affect their work-life balance, but only 62% of older workers agreed (Flexjobs).
88% of employees who work in pet-friendly workplaces plan to stay at the company for the next 12 months vs. 73% of those who don’t work at a pet-friendly workplace (Nationwide).
More than 20% of workers said they’ve left a job because they were denied the chance to transfer to a new location at the company (Topia).
More than 50% of workers who considered leaving said they would reconsider quitting for a chance to relocate, even if they weren’t given more pay or additional benefits (Topia).
5. Health and Wellness
Health coverage is the reason 56% of employees remain on their current job (Americans Health Insurance Plans).
83% of employees say health insurance is very or extremely important in deciding whether to stay in or change jobs (EBRI).
57% of people say that if their employer proactively supported their mental well-being, it would help them to feel more loyal, be more productive, and take less time off work (Health Shield).
6. Employee Satisfaction and Loyalty
72% of workers are satisfied, but 60% are still looking around for a new job with higher wages (Addison Group).
50% of employees said they had left a position to escape a bad manager (Lexington Law).
78% of workers would likely remain with their employer because of the benefits it offers, up from 72% in 2016 (WTW).
25% of employees would require at least a 20% increase in salary to justify making a move (West Monroe).
64% of millennials say benefits are extremely or very important to employer loyalty (Qualtrics).
81% of employees who can easily access their benefits said they feel loyal to their employer, and 79% say they were proud to work for their organization (Thomsons Online Benefits).
80% of employees who said they have a good variety of benefits to choose from also said they identified strongly with their organization’s vision and values, as opposed to 40% of those who don’t (Thomsons Online Benefits).
62% of retail managers say they have lost employees due to scheduling conflicts (WorkJam).
More than 75% of workers would be more loyal to their organization if it offered flexible work options (FlexJobs).
Almost 80% of millennials said they would be more loyal to an employer offering flexible work options, while just over 70% of older workers said the same (FlexJobs).
7. Recruitment and Employer Branding
68% of employees did not choose salary as the most important factor to inform their decisions to take or reject job opportunities (Lexington Law).
Employees said their top concerns during their job search would be their experience in the hiring process, the number of perks, programs and benefits a company offers to help workers with work-life balance, and their connection with a company’s culture and values (Spherion).
55% of businesses think that stronger engagement would improve their ability to either retain, recruit, or carry out succession planning (CBI).
42% of businesses report that their ability to recruit has been improved by their pension scheme (CBI).
15% of employee candidates don’t ask about benefits at all during the interview process (Thomsons Online Benefits).
49% of employers know which total rewards programs employees value, while 47% know which offerings candidates value (WTW).
73% of organizations have an employee recognition awards program in place (Globoforce).
77% of workers said they’d be more likely to accept a job offer if they knew they could telecommute at least some of the time (Robert Half).
8. Job Satisfaction and Motivation
Almost 40% of employees chose interests and passion as the most important factor that informs their decisions to take or reject job opportunities (Lexington Law).
10% of employees said benefits are the most important factor that informs their decisions to take or reject job opportunities (Lexington Law).
More than 70% of employees agreed that fringe benefits would be a key consideration in evaluating future jobs (Zenefits).
40% of employees agreed they would leave their current job within a year for another offering more fringe benefits, but 25% wouldn’t leave (Zenefits).
Nearly 60% of Americans would take a job they love over a job they hate, even if the preferred position paid half the amount of salary they would earn at the job they dislike (Lexington Law).
More than 50% of employees said they have left jobs after hearing the siren calls of better benefits elsewhere (Randstad).
Top reasons for leaving a job: insufficient pay (44%), limited career paths (43%), lack of challenging work (30%), work-life balance (28%), and lack of recognition (27%) (Randstad).
Dissatisfaction stems from employees’ need for additional benefits (57%), the desire for benefits they currently don’t have (24%), benefits they can’t use (22%), and benefits they feel pressured not to use (8%) (Clutch).
46% of employees who discuss benefits face-to-face with an employer report being satisfied (Thomsons Online Benefits).
Money is the number one motivator for 67% of job seekers and employees looking elsewhere for career opportunities (Glassdoor).
Men are more likely to leave for being underpaid compared to women (39% vs. 33%) (Ajilon).
72% of workers didn’t accept the rationale for why they didn’t get a raise, and 71% who received no rationale said they planned to look for a new job within six months (PayScale).
Of employees who received some rationale as to why they didn’t get a raise, just over 25% actually believed it, and of those who didn’t believe the rationale or didn’t receive one, more than 70% said they planned to seek a new job in the next six months (PayScale).
57% of employees who believed the rationale they were given when not getting a raise and 42% of employees who did receive the raise they requested were planning to leave their jobs (PayScale).
72% of employees who work in pet-friendly workplaces would decline a job offer with another company at similar pay vs. 44% of those who don’t work at a pet-friendly workplace (Nationwide).
9. Pensions and Retirement
66% of firms believe educating staff about the benefits of saving through workplace pensions can help influence employee engagement on pensions, wider financial education (58%), the use of simpler language and minimal jargon in pension communication (63%), technology (54%), and individualizing pension communications as far as possible (49%) (CBI).
63% of businesses include pensions in an employee’s induction process, 60% include guidance from an external provider, 54% a sign-post staff to publicly available pension guidance, 51% offer a digital information portal for staff, and 49% deliver in-house webinars/seminars (CBI).
64 is the current average retirement age for retirees in the U.S., while the expected retirement age for current workers is 66 years old (Annuity).
Only 43% of non-retired adults expect to be financially comfortable in retirement (Gallup).
Do you need a first-class HR experience that will help you find the best business solutions for HR your needs, schedule some time to talk to us today at The Mission.
About The Mission
The Mission is a leading partner in the PEO, HR, payroll, and benefits outsourcing marketplace. We provide a valuable service for small and medium-sized organizations and government contractors, serving as a trusted partner in integrated human resource (HR) compliance, risk management, employee benefits, employment practices liability insurance (EPLI), and payroll processing.