We looked at a variety of employee benefits surveys and each one revealed the importance of an appealing benefits package in attracting and retaining talent.

60 percent of Glassdoor Employment Confidence Survey respondents reported that benefits are a major factor in considering whether to accept a job offer. 80 percent of respondents would choose additional benefits over a pay raise. Health insurance, vacation/PTO, and performance bonuses were the most valued benefits. Interestingly, this survey shows that women and younger employees are more likely to value benefits over pay raises.

A Fractl survey of 2,000 employees across industries corroborated the Glassdoor findings. Respondents were asked if they would give “some consideration” or “heavy consideration” to 17 unique employee benefits when choosing between a higher and lower paying job. This study found that better health, dental and vision insurance; more flexible hours; and more vacation time warrant the most consideration. 88 percent of respondents said they would give better healthcare consideration in choosing a lower paying job.

Generationally-Tailored Benefit Plans

A recent LIMRA (Life Insurance and Market Research Association) study found that the generations have vastly different employee benefit needs, but all value base pay above other benefits. The study, detailed in HR Morning, asked a large pool of employees across industries and companies to rank their benefit needs. Though base pay was ranked as the top need for each demographic, the rest of the responses revealed that a one-size-fits-all approach clearly cannot meet the needs of each generation.

The preference for higher base pay as the number one need in each generation seems to contrast with the Glassdoor results—particularly the 80 percent who would choose additional benefits over a raise. These results aren’t necessarily contradictory; a raise is an incremental lift in salary, not the actual salary. In other words, workers with a strong base pay may find incremental enhancements to their employee benefits packages more appealing than a small raise.

For organizations that skew toward one end of the employee age spectrum or another, these results can help HR managers to determine priorities in offering attractive benefits packages:

Millennials (34 and Under)

1. Base pay
2. Career opportunities
3. Retirement plan
4. Low healthcare costs
5. Bonus/incentive

Generation X (35-49)

1. Base pay
2. Retirement plan
3. Low healthcare costs
4. Bonus/incentive
5. Paid time off

Baby Boomers (50-64)

1. Base pay
2. Retirement plan
3. Low healthcare costs
4. Bonus/incentive
5. Paid time off

We’re not surprised at the relative unimportance of vacation time reflected in this survey’s results, as Americans are accumulating $224 Billion in annual unused vacation time (though it does contradict Glassdoor’s findings). If you are among the many employees who do not prioritize vacation days, you may change your mind after reading our post, Think Wasting Vacation Days Is Ambitious? You May Be Dead Wrong.

A “Benefits Wallet” for Financial Control

Another recent LIMRA study found that 73 percent of employees across age groups would like the flexibility to customize their own workplace benefits. The concept, called a “benefits wallet” by Financial Advisor, would enable employees to allocate benefit contributions as they see fit. Funds for health care, vacation benefits, retirement savings, disability insurance, and educational programs could be allotted based on individual preferences.

For instance, younger workers could allocate more toward vacation benefits, while older workers could allocate more toward health and disability insurance. Feasibility is an issue here, as health insurance costs rise when contributions from younger participants fall.

Just half of the surveyed workers reported being happy with their current employer benefits. Higher income households reported higher satisfaction ratings—no surprise there. Generationally, this survey also revealed stark demographic differences: Millennials want better education benefits and paid parental leave. Gen-Xers prioritize financial planning and wellness programs and baby boomers value disability insurance more than the younger generations. Stage of life concerns are a clear determinant of how the generations prioritize benefits.

It is worth noting here that even if providing a “benefits wallet” were a cost-effective option, the concept could have unintended consequences. In such a system, many workers who opt to put less into healthcare and retirement accounts would eventually regret their high-risk decisions. Employers considering these survey results will have to weigh these risks against the hiring advantages of a flexible employee benefits package.

What your organization does with these survey results will depend on a variety of factors, including your benefits budget, employee demographics, and corporate values. The closer you can calibrate your benefits packages to these variables, the better you will perform in attracting and retaining talent.