Ask HR professionals what drives employee loyalty, and you’ll likely hear familiar answers: competitive salary, good health insurance, maybe flexible work arrangements. But recent research tells a different story. With 63% of employees saying they’d leave their job for another position offering better benefits but less or equal pay, the shift in priorities signals a fundamental change in the employee retention equation.
Employees once worked for salary and security. Today, engagement comes from benefits that remove friction in daily life and support whole-person well-being. Nearly nine in 10 employees say well-being matters as much as salary, and 85% expect their employer to play an active role in supporting it.
Support outside work drives engagement at work
Health insurance and retirement plans remain must-haves, but they’re no longer enough on their own. Today’s workforce looks for benefits that reflect the pressures they’re juggling: caregiving responsibilities (which affect nearly three-quarters of employees), mental health challenges (reported by three in four), and financial stress that cuts across all income levels.
The benefits that move the needle now are the ones that reduce daily stressors: caregiving resources, accessible mental health support, financial wellness tools, and flexibility.
This benefits evolution matters not just to employees, but to organizations too, where skills shortages and the high cost of turnover make employee retention more critical than ever.
These five non-traditional benefits stand out for their engagement-boosting potential.
1. Comprehensive caregiving support
Caregiving support is no longer a niche need; it’s a workforce reality. Seventy-three percent of employees have caregiving responsibilities, whether for children, aging parents, pets, or all of these at once. Among them, a growing number are part of the “sandwich generation,” balancing care for both children and aging relatives.
The best care benefits cover the full spectrum, including access to vetted caregivers and centers and access to concierge services who can help employees address specific challenges.
The solutions are about more than convenience. They help reduce the constant background stress that comes with wondering, “What happens if my sitter cancels?” or “What if Mom needs help during the workday?”
The impact is tangible: Eighty-six percent of employees say they’re more likely to stay at their employer because of caregiving benefits. For these employees, knowing they won’t have to choose between a meeting and a caregiving emergency makes all the difference in whether they stay engaged, or start considering other jobs or even leaving the workforce.
For employers, caregiving benefits represent a practical way to meet employees where they are. When employers address caregiving needs head-on, they’re not just supporting employees’ lives outside of work. They’re directly impacting unplanned absences, turnover risk, and productivity. The return on investment comes through both loyalty and operational stability.
2. Emergency care resources
Even the best-laid plans can unravel without warning: a child wakes up with a fever, an aging parent needs an urgent doctor’s appointment, or a spouse faces an unexpected medical crisis. And it’s not just human family members. 75% of pet owners report missing at least one day of work in the past year because of pet issues.
These unexpected moments often mean the employee has to scramble to find an in-the-moment solution, which often means last-minute absences from work, disrupted projects, and added stress for coworkers who have to pick up the slack.
Backup care benefits are designed to take the panic out of these situations. By giving employees access to reliable, same-day solutions (whether that’s child care, adult care, or even pet care) organizations help ensure that family emergencies don’t automatically become workplace emergencies.
And the payoff is immediate. Employees who know they have a safety net are better able to focus on critical work because they’re confident they have a just-in-case solution that won’t force them to choose between caregiving and professional commitments.
Effective programs combine reliability with flexibility, offering same-day solutions, coverage across different family needs, and quality standards employees trust. For employers, the result is fewer missed workdays, less disruption to coworkers, and greater operational stability.
3. Financial wellness programs
Money stress doesn’t stay at home when employees come to work. It shows up in reduced focus and higher turnover risk. Employees report losing more than seven hours of productivity each week to financial stress, costing U.S. employers an estimated $183 billion annually.
That’s why financial wellness benefits have moved beyond basic budgeting workshops to more comprehensive support. Workplace benefit options now include student loan repayment assistance, emergency savings options, care spending accounts, and access to financial coaching. Each tool tackles a different pressure point, whether it’s debt, cash flow, or the rising costs of care. Generational differences make these tools especially important as younger employees grapple with student loan burdens, mid-career workers face child and senior care expenses, and older employees focus on retirement readiness.
For companies, the return is clear. Employees with access to meaningful financial wellness tools are less distracted and more engaged during the workday. Providing this kind of support signals to employees that their needs can be met; a factor that can strengthen engagement and influence retention of top talent.
4. Mental health support
Mental health has become one of the most visible drivers of employee well-being. Three in four workers report experiencing at least one mental health challenge, yet many struggle to access timely, affordable support.
Traditional employee assistance programs (EAPs) often focus on crisis intervention, but employees increasingly expect benefits that help them take a proactive approach to maintaining their mental health, just as they do with physical health.
Mental health resources that match employee expectations can take many forms: counseling or therapy benefits with low or no copays, digital platforms that connect employees to counselors or coaches on demand, mindfulness and stress management tools, and mental health days separate from general PTO. Rather than one-size-fits-all coverage, the aim is to offer multiple ways for employees to access the help they need in the format that works best for them.
Organizations that support mental health see a return of $4 for every $1 invested in mental health support through reduced medical and disability costs, increased productivity, and lower absenteeism. In addition, visible investment in mental health sends a powerful message that the organization takes employee well-being seriously.
The implementation of mental health resources can start with small steps, like expanding coverage for counseling sessions, offering access to mental health apps, and training frontline managers to recognize the early signs of burnout. Over time, the multiple resources come together to create a comprehensive framework that helps employees manage stress, build resilience, and stay engaged.
5. Flexibility that works
The traditional 9-to-5 workday was designed for a very different workforce than today’s. Between school and daycare schedules, medical appointments, caregiving commitments, and long commutes, rigid hours often clash with the schedule realities employees are navigating. Flexibility has become a top factor in job decisions, with nearly two-thirds of employees saying they would leave their job or accept a pay cut for greater flexibility.
But flexibility isn’t only about remote or hybrid work arrangements. It can be as simple as having the ability to adjust work hours to accommodate appointments or as creative as implementing compressed work weeks or job sharing. What the different models have in common is a recognition of diverse and evolving employee needs. What works for a new parent may differ from what works for an employee caring for aging parents or someone managing a chronic health condition.
For employees, access to flexibility reduces stress and creates space for both professional and personal responsibilities. For employers, the payoff comes in higher engagement, stronger loyalty, and expanded talent pools not limited by geography. Research links flexible work arrangements to increased productivity, lower absenteeism, and higher job satisfaction.
Flexibility only delivers value when it works for both employees and the business. That balance comes from setting shared expectations and training managers to apply flexible options equitably, creating an environment where productivity and retention go hand in hand. With clear expectations around collaboration, communication, and accountability, employees have the confidence to use the flexibility available to them, while giving organizations the consistency they need to operate.
The new equation for employee benefits
The changes in employee expectations are significant and here to stay. Competitive pay and core benefits still matter, but employee engagement today is shaped by how well organizations help people manage the realities of modern life. Benefits that address caregiving, financial wellness, mental health, and schedule flexibility reduce friction in employees’ lives, helping to keep them productive.
Reach out to learn which caregiving benefits can strengthen your workforce.
