In an MIT study of 34 million U.S. workers who left their jobs between April and September 2021, wage dissatisfaction was, perhaps surprisingly, far from the main issue. Instead, workers cited broader issues, such as a failure to recognize employee contributions and inflexible work schedules. By far, the most powerful indicator in predicting a company's turnover rate was a toxic work culture. 

Another study by MetLife found that 87% of employers said they had a strong sense of loyalty to their employees, whereas only 55% of employees believed that their employer had their best interests in mind. Such a stark disconnect between what employers believe and what employees report shows just how far the pendulum has swung in terms of employee satisfaction. 

What benefits do employees want?

While the past two years have turned the working world on its head, the silver lining is that these changes in employee satisfaction levels have provided an insight into what employees value most. Employers and their benefits advisors should consider these three benefits as essential parts of their compensation packages for 2023 and beyond

Health and wellness

When determining employee benefits, it's easy for employers to think that all they need to offer are a few in-office perks like an extra breakroom or a foosball table. But today's workers are not so easily mollified. Instead, employees want more substantial and measurable benefits to prove that workplaces are committed to protecting the health and wellbeing of their employees. The pandemic and the resulting lockdowns highlighted for many just how important it is to look after both their physical and mental health, and workers increasingly expect their employers to see things the same way. 

In response, more employers are now offering lifestyle spending accounts (LSA) as part of their benefits package. These LSAs may include coverage for physical wellness, such as athletic equipment, gym membership, and fitness trackers. They may also cover emotional wellness through meditation classes and company retreats. Some employers are also looking with renewed interest into employee assistance program (EAP) benefits, which provide training or assistance to employees for such things as elderly care, relationship challenges, or financial guidance 

Whatever the specifics of a particular health and wellness benefit, the key thing is to ensure that employees feel appreciated and supported both inside and outside the office. In the past, it was expected that employees would keep their personal problems and challenges at home. That attitude won't fly today.

Life insurance

One seriously neglected area of employee benefits over the past few decades has been life insurance. Few employees seem to pay much attention, assuming that whatever boiler-plate coverage that their companies provide will be sufficient. The problem is, the typical group life insurance policy only offers very meager coverage. And many employees don't realize that these policies won't transfer with them if they move to different companies. 

Employers should consider offering new and existing employees the option to acquire individual life insurance coverage as an add-on to their group coverage benefits. Such benefits provide the families of employees with additional financial protections that their families sorely need at a time when living costs are going up. And since employees are generally paying for this coverage themselves, employers get the benefit of widening their benefits packages with necessarily increasing costs.

 And don't just mention these benefits once during the onboarding process. Companies should routinely remind workers there are supplemental life insurance options available. This is borne out by a 2021 LIMRA Workplace Benefits Study, which found that 7 out of 10 employees preferred to receive benefits information at least a few times throughout the year.

Workplace flexibility

Finally, one of the biggest shifts in employee expectations has been in the freedom to prioritize life, not work. Unlike older generations, Millennials and Gen Zers are far less likely to glorify work above all else. Instead, they want more flexibility in where and when they work. 

Employers should respond to this demand for greater flexibility. For some, it might be more opportunities to work remotely. In this case, companies should create flexibility for positions that workers can effectively perform through a remote or hybrid arrangement. One upside for the employer here is that remote work widens your hiring pool and increases opportunities to find the best talent, no matter where they are in the world. 

For other employees, greater flexibility may mean more freedom in choosing their scheduling. Whatever flexible work benefits a company chooses to offer, it is clear that flexibility is here to stay. Employers will need to think creatively to meet the demands of new and existing talent. 

Final thoughts

In 2023, benefits advisors and their employer clients will have to adapt to new economic and social pressures, many of which will require a reevaluation and restructuring of employee benefits programs. This will require additional investments, but considering the ongoing evolution in employee expectations and values, it's an investment that few employers can afford to ignore. 

It is only by offering the most up-to-date benefits that employers can engage and retain their most valuable employees.