The Best Work Perks to Boost Employee Satisfaction

Free lunch! 12 weeks of paid parental leave! Coverage for further training! More and more companies are enticing with attractive benefits to attract the best talent. Your employees and top candidates also pay close attention to which benefits these companies offer.

Our survey of 1,500 American workers found that 68% of job seekers want to know what benefits companies provide – yet 36% of HR managers admit that their company does not disclose this information.

This could be a mistake. Attractive compensation packages are crucial when candidates compare multiple job offers (or even decide whether to apply at all). They are not only an effective tool in recruiting but also contribute significantly to employee satisfaction and can help retain your top talent in the long term.

The landscape of employee benefits is constantly changing, and trends vary depending on industry, location, and role. As an HR expert and designer of your company's benefits package, knowing the current expectations and the truly outstanding benefits will help you achieve your company's hiring and retention goals.

At IceHrm, we gain unique insights into how companies of all sizes, industries, and locations utilize benefits to achieve their goals – and how they use our benefits management services in the process.

Read on to discover employee benefits benchmarks that allow you to assess your company's position compared to others, as well as examples of companies where people particularly enjoy working.

What are employee benefits?

Employee benefits are the additional perks and compensations that companies offer their employees on top of their salary. These include, for example, paid vacation, flexible working hours, retirement plans, and company health insurance.

For employees, these benefits are crucial for a balanced work-life and job satisfaction. But companies also gain advantages from offering employee benefits – such as employee retention, higher morale, and attracting qualified candidates.

What benefits do employees really want?

According to a study by Forbes Advisor, American employees value five key benefits:

• Employer-funded health insurance: 67% consider company health insurance to be the most important additional benefit.  
• Life insurance: 45% want this benefit as part of their employer's package.  
• Retirement benefits: 34% plan ahead and want this option to be included in their benefits package.  
• Mental health benefits: 33% want more support from employers in the form of mental health benefits.  
• Mandatory paid leave: 31% want companies to offer mandatory paid leave – however, it should be noted that none of the companies participating in this survey considered mandatory paid leave as a key additional benefit.

9 Desired Health Benefits

In healthcare, besides the usual health insurance and wellness services such as medical care, dental treatment, and vision aids, there are hardly any companies that do not offer these.

However, companies stand out from others when they offer additional services for physical and mental health that promote the well-being of their employees.

According to SHRM, 88% of employers rated employee healthcare as "very important" or "extremely important." Given the increased focus on mental health and menopause-related benefits this year, now is a good time to prioritize these aspects.

The best health benefits

• Long-term care insurance (e.g., financial support such as home care)

Above-average health benefits

• Pet health insurance
• Benefits related to menopause
• Gym discounts

Basic health benefits

• Medical care
• Dental care
• Vision care
• Optional health savings accounts (HSAs)
• Optional flexible spending accounts (FSAs)

Editor's Comment: Companies with outstanding health benefits

• Capital One: On-site, state-certified nutritionists and free virtual fitness classes are just the icing on the cake of Capital One's comprehensive health benefits.
• Salesforce: Employees and their family members receive support for addiction issues, helping them navigate one of life's greatest challenges. Additionally, the company offers rehabilitation and recovery services as part of its health insurance plans. Furthermore, the community groups "Soberforce" and "Mental Health Matters" provide an excellent example of an inclusive approach to dealing with addiction.

10 paid time off (PTO) options

The compatibility of work and private life is becoming increasingly important for younger generations, and paid vacation plays a key role in this. In fact, 37% of employees value paid time off more than salary increases.

According to a recent study, 54% of American employees work during their vacation. Therefore, it is important for HR to encourage employees to take their vacation, truly switch off, and enjoy it. While vacation is common across industries, the duration and type of vacation offered determine whether an employer stands out from others.

More and more companies are introducing various forms of reduced working hours, such as the four-day workweek or 'summer Fridays' (a scheme that encourages employees to take Fridays off between Memorial Day and Labor Day).

In 2024, Colorado, Illinois, and Minnesota passed their own laws to ensure fair vacation policies from companies. For example, Illinois stipulates that employees can use their vacation for any purpose. SHRM also noted a stabilization in parental leave, which is around 40%, and a decline in vacation for elections, which is now about 50%.

The best vacation benefits:

• Unlimited vacation
• Paid parental leave
• Sabbaticals
• Reduced working hours

Above-average vacation benefits

• More than 3 weeks of paid vacation
• 10–12 paid holidays
• 3–5 days of special leave in the event of a death

Standard vacation benefits

• 14–21 days of paid vacation per year
• 7–10 paid holidays
• 2–3 days of special leave in the event of a death

Editor's comment: Keeping an eye on the best companies

• Netflix: At Netflix, the vacation policy is simple: "Take vacation." Employees decide for themselves when they need a break, allowing them to figure out what is important to them – and when. This policy generally falls under the category of "unlimited vacation." However, it's not necessarily the dream job one might imagine: since employees often have no formal entitlement to vacation or do not accumulate it over the years, they may be less likely to ask their managers for time off. Therefore, for employers with unlimited vacation, it's important to create a positive culture around vacation and employee well-being. You can learn more about unlimited vacation in our blog.
• HubSpot: To ensure that employees get time off, HubSpot hosts a company-wide vacation week every July. In addition to the generous unlimited vacation policy and a four-week paid sabbatical after five years of service, this allows every employee to enjoy much-needed time away from the office.

5 Ways to Save for Retirement

Everyone works for… retirement? Given rising living costs and longer life expectancy, younger generations are increasingly concerned about their financial independence in retirement.

According to the US Bureau of Labor Statistics, 72% of private-sector employees have access to employer-sponsored retirement plans, and most employers offer a match. Nowadays, job seekers expect retirement benefits from companies that provide them with financial security in addition to their base salary.

Similar to healthcare, retirement benefits are also at the top of employers' agendas – over 80% consider retirement benefits to be "very important" or "extremely important." The average employer match now amounts to up to 6.61% of contributions to 401(k) plans and 6.50% to Roth 401(k) plans.

The Best Retirement Benefits

• Stock Options
• Equity Programs
• Generous Employer Contributions to Company Pension Plans (aim for at least 6.5%!)

Above-Average Retirement Benefits

• Retirement Planning Advice from a Financial Advisor or Using Software

Basic Retirement Benefits

• Access to a Company Pension Plan, ideally with Employer Contributions

Editorial Comment: The Company with the Greatest Potential

• Google: While many companies offer a company pension plan, Google goes one step further by offering personalized financial coaching. This additional step allows Google employees to strategically plan their finances and prepare for the future.

5 Ways to Improve Quality of Life

The trend toward working from home spread rapidly during the pandemic and has since evolved into a location-independent work model. Digital nomads not only want to take advantage of the benefits of working from home but also work in cafés in Spain; parents want to take their children to dance class at 2 p.m. In short: employees want to adapt their work to their lives, rather than their lives to their work.

Fortunately, there is also a wealth of data showing that some people are more productive in flexible work environments. One study found that remote employees were 13% more productive than their office-based colleagues.

New Jersey, Utah, and Delaware are the top three states for remote work—based on metrics such as cybersecurity, internet costs, and the size of the home office community in each state. So if you work in one of these states and haven’t yet implemented a hybrid work model, you should consider doing so to meet the needs of your employees.

The best benefits for a high quality of life  

Flexible working hours and benefits to improve quality of life remain a priority in 2024: 70% of employers consider them "very" or "extremely" important. More than 56% of employers provide office equipment such as computers and office chairs or subsidize them.  

• Incentives to use paid vacation (e.g., an allowance)  
• Commuting cost subsidies  
• Home office equipment  

Above-average benefits to improve quality of life  

• Hybrid work models  
• *Flexible working hours. This is considered one of the most important additional benefits for American employees.  

*Note: The possibilities for flexible working hours vary greatly depending on the industry. For example, hybrid work models are standard in the technology sector, but less common in industries such as healthcare.

Basic benefits to improve quality of life  

• Working hours determined at the discretion of the supervisor  

Editorial opinion: Spotlight on the best companies  

• IceHrm: At IceHrm, we know how hard it can be to switch off from work. That’s why we offer our employees an annual vacation allowance of $2,000. In return, we only ask that you send us photos of your paid vacation once you return!  
• Microsoft: Like many large technology companies, Microsoft also offers a network of shuttle buses and other buses with Wi-Fi and the relevant software for a more comfortable commute.

6 Strategies for Growth and Development

The numbers speak for themselves: further training is good for business. Employers who offer development opportunities see employee retention and satisfaction rates that are 15% higher than companies without these offerings. It is not uncommon for employees to leave their jobs to advance their careers.

The Best Opportunities for Growth and Development

Keeping your own skills up to date is essential for both employees and employers—especially in light of AI and new technologies that could make many jobs redundant. In 2024, over 80% of employers will offer formal training and further education for new skills, professional development, updating knowledge, and covering certification fees.

• Coverage of continuing education costs

Above-average performance in the area of growth and development

• Dedicated time for further training and development
• Budget for training programs
• Mentoring opportunities

Basic services in the area of growth and development

• Regular performance reviews
• Opportunities for further education

Editor's recommendation: Top companies in focus  

• Starbucks: The coffee giant offers qualified employees the opportunity to earn a bachelor's degree from Arizona State University. Thanks to full coverage of tuition fees, the barrier to access higher education for employees is effectively removed.  
• Amazon: The Amazon Technical Academy provides employees without a technical background with the necessary skills for a career in software development, preparing them for a successful career at Amazon and beyond.  

Give your employees the chance to give back.

Whether you offer time off for volunteer activities or match your employees' donations – charitable initiatives demonstrate your company's commitment to social responsibility. Everyone benefits from this: employees, employers, and the communities in which they operate.

Editor's Recommendation: The Company to Watch

• Apple: The tech giant matches employee donations up to $10,000, whether in the form of time donations ($25 per hour) or monetary contributions (1:1).

Next Steps: Review Your Benefits Package

Since four out of five employees prefer attractive benefits over a pay raise, it's no wonder that companies are increasingly offering appealing and comprehensive benefits. Beyond serving as a tool for attracting and retaining employees, they show your staff that you value them as individuals.

When it comes to employee benefits, IceHrm makes choosing benefits, considering stakeholders, understanding the reasons, and timing a breeze. It not only supports the full range of benefits – including annual enrollment, vacation policies, performance reviews, and much more – but also provides your employees with an easy-to-use overview of their benefits with just one login.

An attractive and comprehensive benefits package is a strategic asset, showing employees they are valued and directly impacting recruiting and retention goals. While the landscape of desirable benefits is broad—spanning health, retirement, and work-life flexibility—the key to success is clear communication and efficient management. IceHrm serves as the ideal platform to centralize and showcase this value proposition. Its Benefits Management features allow HR to track, manage, and enroll employees in the full range of offered perks, from health plans to PTO (including complex policies like unlimited vacation and sabbaticals). Crucially, IceHrm's Employee Self-Service portal provides a single, easy-to-use overview of each employee's total compensation package, ensuring employees always have a transparent view of the significant, non-salary value they receive, thereby maximizing the positive impact of the company's investment in their well-being.