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 architect of your company's benefits package, knowing the current expectations and the truly outstanding benefits can 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 can help you 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 compensation 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 balance and job satisfaction. But employee benefits also offer advantages for companies – such as higher employee retention, better morale, and attracting qualified applicants.

What additional benefits do employees really want?

According to a study by Forbes Advisor, American workers value five key additional 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 opinion: Companies with outstanding health benefits

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

10 Paid Time Off (PTO) Options  

Work-life balance is becoming increasingly important for younger generations, and paid time off plays a key role. In fact, 37% of employees value paid time off more highly than salary increases.

According to a recent study, 54% of U.S. employees work during their vacation. For the HR department, it is therefore important to encourage employees to take their vacation, truly switch off, and enjoy it. While vacation days are common across the industry, 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 policy 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 in companies. For example, Illinois now stipulates that employees can take their vacation for any reason. SRHM also noted a stabilization of parental leave, which is around 40%, and a decrease in leave for elections, which is now around 50%.

The best vacation benefits:

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

Above-average vacation benefits

• At least 3 weeks of paid vacation
• 10–12 paid holidays
• 3–5 days of special leave in case of death

Basic vacation benefits

• 14–21 days of paid vacation per year
• 7–10 paid holidays
• 2–3 days of special leave in case of 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 inclined to ask their managers for time off. Therefore, for employers with unlimited vacation, it is 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 employees get a break, HubSpot hosts a company-wide vacation week every July. Additionally, HubSpot offers generous, unlimited vacation days and a four-week paid sabbatical after five years of service, so everyone can enjoy much-needed time away from the office.

5 ways to support retirement savings

Everyone is working for… retirement? In view of rising living costs and longer life expectancy, younger generations are increasingly concerned about their financial security in retirement.

According to the U.S. Department of Labor, 72% of private-sector employees have access to employer-sponsored retirement plans, and most employers offer a contribution. Nowadays, job seekers expect companies to provide retirement benefits that give them financial security in addition to their base salary.

Like healthcare, retirement planning is also at the top of employers' agendas – over 80% consider company pension benefits to be "very important" or "extremely important." The average employer contribution now amounts to up to 6.61% of contributions to a company pension plan (401k) and 6.50% of contributions to a Roth 401k.

The best company pension benefits:

• Stock options
• Equity participation programs
• Generous employer contribution to company pension plans (aim for 6.5% or more!)

Above-average retirement benefits

• Services for retirement planning such as financial advisors or retirement planning software

Basic retirement benefits

• Access to a company pension plan (e.g., 401(k)), ideally with employer matching

Editorial opinion: The company with the greatest potential

• Google: Many companies do offer a company pension plan, but Google goes a step further and provides personalized financial coaching. This extra step allows Google employees to strategically plan their finances and prepare for the future.

5 Ways to Improve Quality of Life

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

Fortunately, numerous studies show that some people are more productive with flexible working conditions. One study found that remote employees were 13% more productive than their colleagues in the office.

New Jersey, Utah, and Delaware are the three best states for mobile work—based on metrics such as cybersecurity, internet costs, and the size of the work-from-home 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 improving quality of life

Flexible working hours and a high quality of life will also be in focus in 2024: 70% of employers consider them 'very' or 'extremely' important. Over 56% of employers provide office equipment such as computers and office chairs or partially subsidize them.

• Incentives to use paid vacation (e.g., a bonus)
• Commuting allowances
• Home office equipment

Above-average benefits to improve quality of life

• Hybrid work models
• *Flexible working hours. This is considered the most important perk in the USA.

*Note: The possibilities for flexible working hours vary greatly depending on the industry. 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: continuing education 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 job to advance their careers.

The Best Offerings for Growth and Development

Keeping your skills up to date is important 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 continuing education to acquire new skills, promote professional development, keep knowledge current, and cover certification fees.

• Reimbursement of tuition fees

Above-average training and development opportunities

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

Basic training and development opportunities

• Regular performance reviews
• Training and development opportunities

Editor's recommendation: The best companies to keep an eye on

• Starbucks: The coffee giant offers eligible employees the opportunity to earn a bachelor's degree from Arizona State University. Thanks to full coverage of tuition fees, this significantly eases employees' access to higher education.
• 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 opportunity to give back.

Whether you provide them with time off for volunteer work or match their donations – charitable benefits demonstrate your company's commitment to social responsibility. Everyone benefits from this: employees, employers, and society.

Editor's Comment: The Company to Watch  

• Apple: The tech giant matches employee donations up to $10,000, whether it's time (volunteer work at $25 per hour) or money (1:1 donation).  

Next Steps: Review Your Benefits Package  

Since four out of five employees prefer attractive perks over a pay raise, it's no surprise that companies are offering increasingly comprehensive and interesting benefits. In addition to serving as a tool for attracting and retaining talent, they show your employees that you value them as individuals.

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.