For the first time in the survey’s seven-year history, 401(k) plans tied with dental insurance as the second-most important benefit to employees. The overall importance of a 401(k) benefit has increased 11% since the 2022 survey. There is a significant gender gap, with 59% of women respondents rating 401(k)s as important compared to 66% of men. Perhaps with the financial uncertainties of the pandemic in the rearview mirror, workers are focusing on financial wellness, looking to secure their future and wanting support from their employer.

Employees are navigating the challenge of balancing health insurance premiums with out-of-pocket expenses while preparing for unexpected health care costs. Many focus on keeping premiums as low as possible, although almost as many prefer higher premiums to avoid paying more at the time of care. However, over time, more employees have shifted toward lower paycheck deductions for health care costs, even if it means adjusting other benefits.

Related: Higher premiums, out-of-pocket costs drive higher health care financial burden

Employees increasingly desire flexible, personalized options that address their own situations, including their family’s needs. Of those surveyed, three-quarters expressed interest in receiving personalized recommendations for benefits. Even though the survey found that employees feel valued by their employers because of the medical benefits provided -- and even more because of non-medical benefits -- voluntary benefits are underused.

“Smaller employers often struggle to provide tailored benefits due to prohibitive costs and limited plan and carrier options, yet the solution lies in maximizing the value of their offerings,” the survey report said. “By prioritizing flexible offerings that fit employees’ actual needs, companies can foster a more satisfied, engaged workforce and make every dollar spent on benefits count.”

Being an employer of choice today requires a comprehensive compensation package that includes personally tailored benefits.

“With constant change in the health care landscape, regulations and the domestic and global economies, it’s critical that employers help employees navigate these uncertainties,” the report concluded. “The goal is to deliver a better overall employee experience and make employees feel valued, all to drive employee retention and attract the best people.”