How to Assess Employee Benefit Preferences

It doesn't matter how amazing your benefits package if your team doesn't use it. I've learned that what I value might not be the same as what my team values. As I shared on Episode 136 of "Build to Enough," at Little Fish, I've implemented unique benefits that make my employees feel valued while also recognizing that they are human. For example, I offer "Sick and Sad Days"—time off that isn't counted against anyone if they're sick or just can't do it that day. I wanted to ensure they have room to take time off when they aren't at their best. We also close for five weeks out of the year: one week during spring break for tax season, one week at the end of summer, and two weeks at the end of the year. These breaks are automatically built in and fully paid for everyone. We offer flexible work hours with some overlapping core hours, but they can work at a time that suits them best. Plus, we have an annual all-expenses-paid company retreat, a 401k match, and internet reimbursement. Now, I didn't start with all of this. Bit by bit, I figured out what made the most sense for the business and what the team actually wanted. If you're looking to develop a benefits package that truly supports your team, here are some steps to consider: 1. Assess your team's wants and needs - Ask them what they value and what perks would make a difference in their lives. 2. Prioritize core benefits - Focus on essentials like PTO, health benefits, and retirement plans, but don't forget to explore other perks. 3. Research your options - There are many health and retirement plans available for small teams. Do your homework to see what will work best for your team (and your budget 😉 ). 4. Consider supplemental benefits - Look for inexpensive perks that have a significant impact, like flexible hours or remote work options. 5. Maximize your budget - Allocate a specific amount for benefits and make the most of it. Seek group buying opportunities and tiered benefits to offer more without overspending. 6. Review and adjust regularly - Benefits aren't a set-it-and-forget-it deal. As your team evolves, so should your benefits package. Creating a benefits offering that truly supports your team not only helps retain your current employees but also makes your company a place where people want to work.

Asking employees for their input on benefits is risky, and can be a double-edged sword. They might ask for things you can’t deliver. Do it anyway. We see companies spending a high PEPM with ancillary benefits that are only getting a 3% utilization. That’s wasting money that could be put into PTO banks, higher pay, or different types of benefits. Benefits are such a high-cost area, and you can’t afford to spend dollars on things that aren’t valued and utilized. So it’s imperative to survey employees to design a successful benefits program. Use surveys, focus groups, or one-on-ones to understand their needs, desires, and concerns. And be candid with them about constraints – whether they’re budgetary, implementation, or workforce support. Then try to match core and ancillary benefits to their priorities and offer more choices and freedom. Help them feel invested in the process so that ultimately they see your employee benefits package as an actual benefits package.

Companies need to prioritize gathering feedback directly from their workforce to truly understand and improve employee benefits. Surveys are a powerful tool for this. At IMA Financial Group, Inc., we’ve invested heavily in creating an organic platform for conducting surveys, helping our clients pinpoint exactly what they need to know about their employees’ views on benefits. This broad-reaching approach allows companies to make informed decisions—whether it’s tweaking existing benefits, adding new ones, or phasing out those that employees no longer value. For more critical issues, smaller, targeted focus groups can also be effective. By engaging stakeholders directly, you can gain deeper insights and make strategic decisions that align closely with employee needs. In my experience, both of these methods—surveys and focus groups—are the best ways to gather the information necessary for making impactful changes to benefit programs.

Companies should invest in benefits that suit different age groups and backgrounds. The Bureau of Labor Statistics states that annual benefit costs are $23,696 per private employee and $26,226 for civilian workers. Since 78% of employees value good benefits for job retention, understanding diverse employee needs is crucial. Kristina Welke from New York Life Group Benefit Solutions emphasizes offering flexible benefits to cater to a multi-generational workforce with varied needs. A survey by NYL GBS of 1,020 workers shows common priorities: retirement savings matter to all, but more to older generations (77% Gen X, 84% baby boomers) than younger ones (61% Gen Z, 73% millennials). Flexible working is highly desired across all groups. There are differences too. Mental health support is key for younger workers (42% Gen Z and millennials), whereas long-term care is vital for older ones (39% Gen X, 66% baby boomers). Companies should tailor benefits to real-life employee needs, highlighting how they address financial and personal challenges. Regular employee feedback through surveys and forums helps businesses tailor and improve their benefits offerings for better outcomes. Top benefits by generation (NYL GBS): **Gen Z:** 1. Employer 401(k) match — 61% 2. Supplemental health insurance — 53% 3. Mental health support — 42% 4. Flexible work — 40% 5. Retirement savings help — 38% **Millennials:** 1. Employer 401(k) match — 73% 2. Flexible work — 51% 3. Supplemental health insurance — 47% 4. Mental health support — 42% 5. Retirement savings help — 30% **Gen X:** 1. Employer 401(k) match — 77% 2. Supplemental health insurance — 50% 3. Flexible work — 48% 4. Long-term care insurance — 39% 5. Extra life/disability insurance — 38% **Baby Boomers:** 1. Employer 401(k) match — 84% 2. Long-term care insurance — 66% 3. Supplemental health insurance — 57% 4. Flexible work — 45% 5. Extra life/disability insurance — 43%