Best 10 Benefits Employees Seek in 2025

The horrors of living with Covid-19 are in the past, but its impact on how we live and work is huge. Millions of people who have successfully adapted to working from home find it difficult to return to their once “normal” working environment. As the world of work shifts and changes, employers need to offer more than just the basics to attract and retain the talent they are looking for and boost their workforce’s productivity.

So, what are the most sought-after employee benefits in 2025? Let’s find out!

What are Employee Benefits?

Employee benefits are any benefits given to employees in addition to their base salary and wage. A typical employee benefits package might include health insurance, life insurance, paid time off (PTO), profit sharing, retirement benefits, and other perks.

Benefits vs Perks: What’s the Difference?

While people often use these terms interchangeably, there is a slight difference between employee benefits and perks.

Benefits are non-wage compensation that supplements an employee’s salary. Benefits essentially pay for things an employee would have to cover with their own means, such as health insurance, retirement savings, paid vacations, etc.

Perks, also known as “benefits in kind”,  are prizes or incentives employers offer in addition to salary and non-wage compensation. They are typically “experiential,” meaning they give an employee an experience but are not always a form of compensation. Free food and snacks, bonuses, company holidays, and discounts are all examples of perks.

Why are Employee Benefits and Perks Important?

A good benefits package can make employees feel rewarded and appreciated for their work. Benefits also support an employee’s family, health, and financial future, which can help attract and retain top talent.

The benefits you provide communicate your company’s values. An excellent benefits package demonstrates that you understand your employees’ needs and care about their overall well-being.

If you want to attract top talent, increase retention rates, boost morale, and employ a healthier workforce, you must offer an attractive benefits package.

10 Most Sought-After Benefits and Perks

1. Insurance

Employees view medical insurance as one of the most decisive factors when reviewing the benefit package of a potential job. That’s why most employers provide it.

So, a typical employee benefit insurance plan includes the following coverage: medical health insurance, group term life insurance, prescription drug plan, and accidental death and dismemberment policies. Other companies may offer a more comprehensive package that might include dental and vision plans as well as short or long-term disability insurance.

Life insurance shows that the employer cares not only about the employee but also about their family. If the employee passes away, their family will get a lump sum payment to cover funeral expenses or to take care of living expenses.

Accidental Death and Dismemberment (AD&D) plan, which pays an amount to employees who die or have injuries that prevent them from working, can also supplement life insurance.

A disability insurance plan, which may cover long-term or short-term disability, is another way to enhance the life insurance package.

2. Pension

A pension plan is an employee benefit established and maintained by an employer that provides retirement income or defers income until the end of covered employment or beyond. There are several retirement plans, including the 401(k) plan, 403b, IRAs, and the traditional pension plan, also known as a defined benefit plan. Some plans are intended for big companies, while others are designed for smaller businesses.

Setting up a retirement plan is an excellent tool for attracting and retaining valuable employees and assisting them in achieving a more financially secure future.

3. Paid Time Off (PTO)

Paid time off is required by law in many countries. While employers in the United States are not required to provide paid vacation leave, those who do so willingly gain a competitive advantage in talent attraction and retention. According to SHRM, 9 out of 10 employees find paid leave crucial to their overall job satisfaction.

Employers may also choose to extend legally mandated leave by providing additional sick days, bereavement time off, and PTO for training or volunteer work.

4. Flexible Work Schedule

First of all, what does it mean to have a flexible working schedule?

A flexible work schedule policy allows employees to choose when they arrive and leave. It’s an alternative to the typical 9–5 work schedule that gives employees some flexibility in arranging their lives more effectively.

Flexible work hours are a cost-effective employee perk in many ways. Firstly, it costs you nothing to allow your employees to rearrange their schedules to make their lives easier. Secondly, happy people work more productively. So if your employees want to work 10 hours a day so their week is only four days long, why not?!

5. Hybrid Work Model

The term “hybrid work” refers to a flexible strategy that allows employees to divide their time between working in the office and working from home. While the idea may be new, it’s quickly gaining popularity nowadays. 77% of companies have already adopted the hybrid working model. Furthermore, 56% of those companies allow their employees to select when and how frequently they want to come into the office.

A hybrid work model creates a trusting relationship with employees, increasing loyalty and job satisfaction. It also allows employers to hire from around the world, diversifying their workforce and boosting creativity. Last but not least, it improves the bottom line by reducing real estate costs and office supplies. It also saves money for employees by reducing commuting costs.

6. Physical Health Programs

We feel happier and more energetic when we exercise regularly, which quickly affects all aspects of our lives, especially work. Employers know about it, and that’s why they often include it in their benefit plans. Furthermore, some companies are going beyond the common gym membership benefit and offering budgets for employees to have their own home-gym or accommodating their office space for a midday workout.

7. Mental Health Programs

44% of employers are now investing in mental health benefit plans. That’s not surprising after all we have been through in 2020 and 2021. The potential benefits of mental health programs are increased productivity, retention, decreased health care and disability costs, and more.

Because 77% of employees reported having burnout, this benefit is highly sought after in 2022.

8. Free Food and Beverages

According to USA Today, simply providing free food to your employees can result in a 67% job satisfaction rate.

You’re doing more than just satisfying employees’ hunger by providing them with a free meal at work. You’re getting rid of a major source of distraction.

It can be a big boost to productivity at a pretty affordable cost. Moreover, sharing a meal is a great way for the team to gang together to laugh, connect, and make memories.

9. Employee Discounts and Bonuses

Employee discounts and bonuses are an excellent way to reduce living expenses while also rewarding employees for their efforts.

10. Paid Parental Leave

The United States is the only country in the Organization for Economic Cooperation and Development (OECD) and the European Union that does not mandate paid parental leave for employees.

The Family Leave and Medical Act provides employees with up to 12 weeks of job-protected leave, but it’s not paid. So, 66% of employees cannot afford to take time off. Luckily, more and more companies are developing and implementing paid parental leave policies.

Paid parental leave policies encourage employees to return to work, providing companies with the benefit of retaining talent. The realization that the employees can return to work gives them a feeling of safety and higher job satisfaction. It also improves their mental health and well-being, which greatly boosts productivity.

The Bottom Line

Providing an extensive benefits plan to employees is critical for reducing turnover rates, improving employee satisfaction, and attracting top talent. While the cost of benefits may be rising, it is a crucial investment in your people.

The best job benefits are those that are customized to the specific needs of employees at various stages of their careers.