The good news is that offering the right benefits typically comes down to two issues: employee awareness and alignment. Not every workplace can — or should — provide the same mix of benefits. Employers who vet their offerings early and often can transform benefits from a routine business cost to a true investment in employee success.

Why do so many benefits packages miss the mark?

Salary isn’t the only factor workers consider in today’s job market. Employees also want benefits that align with their priorities and won’t hesitate to look for new opportunities if their current employer’s offerings don't measure up.

In fact, 26% of employees said dissatisfaction with their current benefits was the reason they quit. And ZayZoon research shows that 21% of employees would actually take a pay cut for a job with better benefits.

In an increasingly diverse workforce, preferences vary by generation. Gen Z favors financial wellness and mental health support over traditional health benefits like accident or critical illness insurance. On the other hand, millennials value child and family-related support while Gen X and baby boomers are focused on long-term and elder care.

Across generations, employees want benefits that reflect their daily reality. Consider the sobering state of employee financial wellness. Even as inflation eases, 3 in 5 U.S. workers live paycheck to paycheck. So, it’s no surprise that financial health offerings — like debt repayment tools and earned wage access — are in high demand as employees look for more immediate support.

Employees understand that benefits can make a meaningful difference in their wellbeing. But offerings selected at random often fall short. At best, misaligned benefits go unused and waste resources. At worst, they fracture employee trust and fuel attrition.

While creating an effective benefits package takes effort, it is possible — once employers reject the one-size-fits-all mindset and place employee perspectives at the center of the process.

4 essential steps to choose and refine your employee benefits

Benefits can boost engagement and improve retention, but only if they align with the things employees truly value. To go beyond just checking a box, employers need a vetting process that continuously assesses employee preferences and refines benefits offerings over time.

Thoroughly survey employees about their needs and priorities.

Start by gathering feedback from employees about their top benefit priorities. Anonymous surveys often encourage more candid responses, especially about personal topics like financial stress or mental health challenges.

A well-rounded survey lets employees share what’s working and where they need more support. Responses might confirm that employees want well-rounded mental health benefits, like telehealth counseling and subscriptions to mental wellness apps. Case in point: 85% of the employees we surveyed said mental health benefits were important or very important in their benefits package.

Surveys can also reveal hidden gaps, like the fact that younger employees are struggling to manage rising living costs and need financial wellness resources to bridge the gap.

Concrete data removes the guesswork when it’s time to assemble your benefits package. As you adjust offerings, employees will see their perspectives reflected and know your organization is tuned in to their experiences.

Compare benefits options through pilot programs.

Before committing to specific benefit offerings, test multiple options with employee pilot groups to gather firsthand feedback.

For example, you might pilot two different financial wellness tools and ask employees for insights on key features. Was the user interface intuitive? Were the resources and services targeted at your financial goals? Direct input from employees can help reveal if there’s a clear winner or if it’s worth exploring alternatives.

When employees have agency in the vetting process, it increases buy-in and lays the groundwork for greater engagement and usage. In turn, you can make strategic investments that resonate in your workplace — and deliver the support employees want.

Educate employees on how to leverage benefits effectively.

Benefits go unutilized when employees don’t know they exist or aren’t sure how to leverage them. Proactive education is essential for employees to take full advantage of available resources.

Dig back into historical enrollment data to spot programs that might be overlooked. If only a handful of staff accessed the Employee Assistance Program (EAP) despite a strong preference for mental health benefits, an info session may help raise awareness. If you plan to introduce new benefits, dedicate time for hands-on demos and Q&A forums that help employees feel confident accessing the offerings.

Questions are part of the learning process, so be sure to highlight organizational leaders and resources employees can access for support.

Related: 3 factors to consider when funding voluntary benefits

Establish channels to capture feedback and measure utilization.

Employees’ needs are constantly evolving, and benefits should evolve alongside them. To stay aligned with changes, you need a holistic view of how employees engage with offerings.

Employee perspectives are crucial qualitative data points. By keeping open lines of communication — through regular surveys or 1:1 check-ins — you gain insight into employees' experiences with benefits and how their priorities are shifting.

Simultaneously, establish tools that measure quantitative metrics like adoption, usage, and retention rates. Comparing these two data sets helps you spot discrepancies between how employees perceive benefits and how they actually use them so you can address any issues effectively.

Voluntary benefits are more than just perks — they directly reflect your organization’s culture. Employees who feel seen and supported in meeting their core needs are better positioned to invest in their roles.

For employers, the answer is clear: Prioritize meaningful benefits, and employee engagement and loyalty will follow.