Balancing Core and Emerging Benefits

Employee expectations are shifting, but one thing remains clear: benefits continue to be a central factor in the way workers evaluate their employer. The challenge for HR leaders is balancing the benefits that are considered must-haves with those that reflect the changing needs of the workforce.

The Foundation: Core Benefits

Certain categories remain the backbone of every program, according to the 2025 SHRM Employee Benefits Survey.

• Health-related benefits are rated as very or extremely important by 88% of employers, cementing their place as the top priority.
• Retirement savings and leave policies also rank high, each cited by 81% of employers as essential.

These offerings are no longer competitive advantages—they are baseline expectations.

Failing to meet this foundation puts retention and recruitment at immediate risk. Employees assume these benefits will be available, and when they are not, they quickly look elsewhere.

The Differentiators: Emerging Priorities

Beyond the essentials, employees are seeking benefits that reflect the demands of modern work and life.

• Flexible work policies and family service benefits are each prioritized by 68% of employers.
• Professional and career development come in at 65%.

These numbers show that employers recognize the importance of supporting both professional growth and personal responsibilities.

The message is clear: while health care and retirement build stability, flexibility and development build loyalty. Employees increasingly stay with organizations that allow them to develop their skills, balance family needs, and manage work on their own terms.

The Risks of Standing Still

Programs that do not evolve create hidden costs. Outdated benefits contribute to disengagement and turnover, costs that can reach up to 200% of an employee’s salary when replacement is needed. Beyond dollars, employers risk eroding trust and damaging their culture when benefits fail to reflect the realities of their employees.

HR leaders who treat benefits as static miss an opportunity to directly influence retention and performance. A strategy that balances core with emerging priorities is what keeps organizations strong.

Action Items for HR Leaders

Strengthen your benefits strategy for the year ahead by reviewing current offerings and consulting with employees to understand their needs.

Audit Your Mix
Separate your offerings into core (health care, retirement, leave) and emerging (flexibility, family services, career development). Ensure strength in both categories.

Listen to Employees
Survey or hold focus groups to understand which benefits employees use and which ones they wish they had.

Prioritize Communication
Even strong benefits fail when employees are unsure of how to access them. Build awareness campaigns, manager talking points, and simple guides.

Measure Beyond Enrollment
Track retention, engagement, and productivity metrics tied to your most valued benefits. Participation is only part of the picture.

Plan for Change
Benefits are not a one-time event. Set a review cycle to evaluate employee needs and industry benchmarks at least annually.

The Bottom Line

A balanced benefits strategy begins by meeting employee expectations for health and financial security, but it doesn’t stop there. Differentiation comes from benefits that reflect today’s workforce—flexibility, family support, and career growth.

When employers strike that balance, they do more than deliver programs. They strengthen commitment, build trust, and create stability. In any market, benefits that align with employee priorities remain one of the most effective ways to attract and retain talent.

_{SOURCE: United Benefit Advisors (UBA)}