A well-designed employee benefits package is essential for attracting and retaining top talent. Beyond salary, benefits like health care, retirement plans and paid time off play a major role in employee satisfaction and loyalty. But what makes a benefits package truly stand out? It’s about offering the right mix of coverage, flexibility and financial security.
From researching industry standards to gathering employee feedback and ensuring clear communication, these steps will help you design a package that meets both company goals and employee needs.
Here are five key strategies to create a benefits package that supports your employees and strengthens your business.
Do your research.
You don’t have to reinvent the wheel if you are looking to create or improve your benefits package. There are ample resources to help you design the best fit for your employees. The Society of Human Resources Management (SHRM) offers a how-to guide to designing a benefits package. Additionally, the Academy to Innovate HR (AIHR) offers a full guide to compensation and benefits that includes several examples of benefits packages as well as advice on the best way to explain benefits to employees.
Prioritize what employees want.
While creative benefits such as summer Fridays, onsite massages and unlimited snacks may grab headlines, it is the substantive benefits that employees truly value. Research has consistently shown that health care, including dental and vision coverage, as well as a retirement savings plan and life insurance, are top priorities.
As far as non-insurance benefits, a 2025 survey for The HR Digest found the top seven trends in employee benefits are:
Personalized benefits ecosystems: Employees are seeking personalized benefits, not one-size-fits-all packages.
Mental health support: From on-demand therapy to mental wellness stipends, employees want well-being strategies to balance work and life.
Financial wellness: While cryptocurrency-based benefits are seeing an uptick in interest, workplaces are going beyond traditional retirement plans by offering financial support such as student loan repayment assistance and emergency savings funds.
“Work-life integration” benefits: Employees continue to seek flexibility and autonomy, and companies are meeting these wants with unlimited paid time off options, work-from-anywhere stipends and caregiver support programs.
ESG-focused benefits: Employees—notably, younger workers—want environmental, social and governance efforts to be a focus of company priorities, including increased volunteer time off and subsidies for public transit.
Health and wellness: Driven by a holistic focus on well-being, employees can expect to see more preventive care incentives and telehealth offerings—including virtual fitness classes.
Diversity, equity and inclusion benefits: Trends in these benefits include family-building—adoption, surrogacy and fertility—and culturally sensitive medical needs for diverse populations.
Gather feedback.
A simple way to get a clearer idea of benefits that matter to your employees—ask them. Experts recommend surveying employees to find out what they prioritize. Be careful not to over-promise. Create a list of benefits that you know you can deliver on—but make it clear from the get-go that the package you create will focus on their top priorities and likely won’t include everything on the survey. It’s OK to ask if they have any ideas that aren’t included on your list, but, again, emphasize that ultimately you will need to make decisions based on what is realistic from a financial perspective.
Focus on clear communications.
The return on your investment for the money, time and effort that you put into creating a great benefits package won’t fully pay off if your employees don’t fully understand what they are getting. Research has shown that as many as 81% of employees said a company’s benefits package is a major determining factor in whether they accept a job offer. Look for innovative and consistent ways to engage your employees about the benefits you are offering. The Reward And Employee Benefits Association offers five tips on how to best communicate the full value of your benefits package.
Think about life insurance.
Life insurance can be an affordable and extremely valuable benefit for your employees. Life insurance can provide peace of mind and essential financial stability for an employee and their family at one of the most challenging times of their lives. A 2023 LIMRA study found that a record-high of nearly 40% of consumers planned to consider purchasing life insurance with higher numbers for Gen Z adults (44%) and Millennials (50%).
Talk to your local insurance agent about how life insurance can be a key part of a great employee benefits package.
ERIE® insurance products and services are provided by one or more of the following insurers: Erie Insurance Exchange, Erie Insurance Company, Erie Insurance Property & Casualty Company, Flagship City Insurance Company and Erie Family Life Insurance Company (home offices: Erie, Pennsylvania) or Erie Insurance Company of New York (home office: Rochester, New York). The companies within the Erie Insurance Group are not licensed to operate in all states. Refer to the company licensure and states of operation information.
The insurance products and rates, if applicable, described in this blog are in effect as of October 2024 and may be changed at any time.
Insurance products are subject to terms, conditions and exclusions not described in this blog. The policy contains the specific details of the coverages, terms, conditions and exclusions. Your ERIE agent can offer you practical guidance and answer questions you may have before you buy.
