Employers Struggle to Align Benefits with Worker Needs

Nearly three out of four U.S. employees said they would stay longer with companies offering personalized benefits. However, HUB International’s 2025 U.S. Workforce Vitality Gap Index found employers often misjudge what employees value.

The report revealed that flexibility and work-life balance remain top priorities. In fact, 41% of surveyed employees rated these benefits higher than salary. Yet, only 22% of HR and finance leaders ranked flexibility as most important. This gap shows a clear disconnect between workers and decision-makers.

Additionally, financial wellness is emerging as a major concern. According to HUB’s findings, 52% of employees aged 35-44 and 51% of those aged 18-24 reported that financial stress hurt their productivity. Student debt continues to drive these worries, making financial wellness programs essential.

Healthcare also highlights the misalignment. Although healthcare is a core benefit, only 20% of employers recognized its impact on productivity. Meanwhile, 45% of workers aged 24-35 and 42% aged 18-24 admitted that health concerns reduce performance.

HUB’s Chief Operations Officer Linda Keller emphasized that employers risk culture, retention, and productivity when benefits fail to match workforce needs. Companies must reassess priorities to compete effectively for talent.

Despite these gaps, there is some alignment. Both employers and employees agree on the importance of paid vacation and sick leave. Surveys revealed that 94% of employers provide this benefit, while 97% of employees confirmed they use it.

The financial stress issue has also prompted innovation. Goldman Sachs Ayco reported that more employers allow unused PTO to convert into cash, student loan payments, or 401(k) contributions. Still, a recent Hartford study suggested many workers underutilize financial wellness programs due to a lack of awareness.

As businesses face rising competition for skilled workers, aligning benefits with employee expectations has never been more critical. Employers must recognize that flexibility, healthcare, and financial wellness are not perks; they are necessities for workforce stability.

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News Source: Hrdive.com