What Are the Top 5 Types of Employee Benefits?
Companies aiming to develop a competitive benefits strategy should consider which benefits are most appealing to employees, including non-traditional employee benefits. That way, they can tailor their offerings to have the most impact in supporting their teams. Regardless of the benefits a company offers, it’s helpful to explore the importance of employee benefits in the workplace.
Beyond offering support for employees, benefits—including those that provide access to education opportunities—can also be the cornerstone of an effective attraction and retention strategy. According to LinkedIn’s 2024 Workplace Learning Report, 7 in 10 people say learning improves their sense of connection to their organization.
What are the three Rs of employee benefits?
There are several types of employee benefits in HRM. Often, HR professionals will categorize them according to the “three Rs” of benefits: recruitment, retention, and reward. Each of these categories represent an important aspect of employee benefits.
Recruitment. Organizations can leverage their benefits as part of their recruitment strategy. That way, they can attract top talent that will contribute to the company’s overall success.
Retention. Retention can be essential to helping minimize the costs of turnover, as it can take up valuable resources to recruit and train new employees. Specifically, offering education benefits can be effective for retention efforts: according to the 2024 Workforce Edge User Survey of employees who use the platform to access their education benefits, 75% of Workforce Edge users surveyed agree that they see themselves working at their company two years from now.
Reward. Any kind of bonus or other compensation beyond one’s salary can be considered a reward. This type of benefit can encourage productivity, drive a team’s success, and help employees take satisfaction from their accomplishments.
Why are the kinds of benefits offered important to employees?
Many employees want to feel supported by their organization, and offering benefits can be a helpful way to do so. The benefits that can have the most impact are often health insurance, life insurance, paid time off (PTO), access to educational opportunities, and others. It can be helpful for companies to offer a wide variety of benefits to make them as appealing as possible.
What are some creative benefits?
As companies consider which benefits might best support their employees, it can be useful to explore unique offerings. Whether they’re looking at current trends or the future of employee benefits, it’s important to be creative. Here are some potentially impactful options:
Parental leave. This allows employees to take time off to care for newly born or adopted children.
Remote workdays. Working remotely gives employees the flexibility to manage their own schedules, which in turn can enhance their productivity.
Employee assistance programs (EAPs). EAPs can provide access to mental health counseling, legal advice, and other professional resources.
Pet insurance. This kind of insurance is designed to reduce the financial burden of pet medical expenses.
Employee recognition. Recognition programs celebrate employee achievements while fostering a culture of success.
Summer Fridays. Offering full or half days off during the summer can boost morale and engagement.
Financial literacy programs. Financial literacy can equip employees with valuable skills to grow and protect wealth throughout their careers.
Fitness classes. Classes such as weight training, aerobic exercise, and yoga can promote a healthier lifestyle for employees.
What benefits do employees value most?
As we look at benefit trends for 2025, it’s important to consider what benefits are the most valued by employees. With numerous benefits available, it’s helpful for HR leaders to reach out to employees and ask what benefits matter most to them and how these offerings can support their professional and personal goals.
By fostering this dialogue, companies can align valued benefits with employee expectations, ensuring they provide the support employees truly want and need. For example, employees often find value in being able to develop their skills thanks to the education benefits that a company makes available to them. In the same Workforce Edge user survey, out of Workforce Edge users surveyed, 60% believe learning through education benefits helped them gain skills they applied at work.
The top 5 employee benefits are ones that many workers want and often expect to receive from their employer. Like all benefits, they’re designed to provide support for employees both during and outside of work hours.
If you’re interested in revamping your education benefits or changing the way you offer them, Workforce Edge can help increase efficiencies and maximize results from both employees and organizations.
Companies aiming to develop a competitive benefits strategy should consider which benefits are most appealing to employees, including non-traditional employee benefits. That way, they can tailor their offerings to have the most impact in supporting their teams. Regardless of the benefits a company offers, it’s helpful to explore the importance of employee benefits in the workplace.
