Finding and keeping great employees continues to be a challenge for many employers. Where previous generations may have placed greater emphasis on the paycheck itself, today’s workforce, particularly younger employees, are increasingly looking at the full value of the employment experience. Benefits, flexibility, financial wellness, retirement support, and opportunities to grow all play a role in how people evaluate where they want to work.

That means a competitive offer is about more than salary. Yet, benefits and retirement programs are often put in place and revisited only when renewal season rolls around. Over time, that can leave employers with a package that doesn’t reflect what employees want or value. Taking a fresh look at plan design, improving how benefits are communicated, and aligning offerings with employee priorities can strengthen recruiting and retention, often without the cost of across-the-board salary increases.

Why Benefits Matter

Employee well-being drives engagement. MetLife's 2026 Employee Benefit Trends Study reports that only 38% of employees are considered holistically healthy, a reminder that employee well-being extends well beyond physical health. Financial stress, mental and emotional health, family responsibilities, work-life balance, and confidence about the future of their workplace can all influence how employees show up at work.

Benefits can play an important role in addressing those needs. When employees feel supported both at work and in their lives outside of it, they are more likely to see value in their overall employment experience. That can translate into stronger engagement, productivity, and retention.

The goal, however, isn’t to offer the longest list of benefits. More benefits don’t automatically mean better benefits. The most effective packages focus resources on the programs employees need, understand, and use. This can range from medical and retirement benefits to mental health resources, financial wellness, leave, flexibility, and family support. Employers should regularly evaluate utilization, employee feedback, and cost to determine what is delivering value and what may need to change.

Ultimately, the right benefits strategy balances employee well-being, perceived value, and organizational sustainability. Therefore, providing meaningful support for employees while remaining financially responsible for the organization long term

Know What Employees Value

One of the most common mistakes is assuming you already know what employees actually want. Employee feedback should be the foundation through engagement and pulse surveys, stay interviews, and informal conversations. Looking at actual benefit utilization adds another layer, helping identify which programs employees value, which are being overlooked, and which may simply need better communication.

Priorities also vary by career stage, family responsibilities, income, and long-term goals. Early-career professionals may place greater value on student loan assistance, professional development, and financial wellness resources, while employees with families may prioritize dependent care support, flexible work options, and family-focused benefits.

Communication is what closes the loop. During open enrollment, make a point to show employees how their feedback was heard and used to evaluate or shape the benefits being offered. Even when every request can't be implemented, explaining what leadership considered and where changes were made demonstrates that employees have a voice and leadership is listening.

Clear open enrollment materials, plain-language explanations, and year-round education can further strengthen employees' understanding and appreciation of their benefits. Your broker or advisor should also serve as a strategic partner by benchmarking your offerings against organizations of similar size, industry, and geography and modeling potential plan changes before adding costs.

Get More Value

When you check which benefits employees use, it often reveals that the most valuable benefits are the least understood. Employee Assistance Programs, tuition reimbursement, and financial wellness resources are frequently forgotten or hard for employees to access. A benefit that employees can't find or explain has limited impact.

Communication closes the gap. Clear open enrollment guides with plain language, and year-round education beat renewal-season-only messaging. Your broker or advisor should be a strategic partner here, helping you by benchmarking against organizations of similar size, industry, and geography helps identify gaps and test whether programs remain competitive. Together, these steps can help improve participation and perceived value from employees while ensuring your benefits remain competitive and financially sustainable.

Compensation & Retirement

Evaluate pay equity practices, salary structures, job descriptions, and compensation processes so employees understand how pay decisions are made. Managers are often the first point of contact for benefits and compensation questions, so equipping them to point employees in the right direction matters.

Retirement remains central; SHRM's 2026 Employee Benefits Survey found 82% of employers rated retirement savings and planning benefits as very or extremely important. But offering a plan isn't enough. Review 401(k) eligibility requirements, match formulas, vesting schedules, auto-enrollment features, and overall plan design regularly. Pair that with education, participant meetings, Roth versus pre-tax guidance, one-on-one planning, and customized education sites. Employees who understand their plan are more likely to use and value it.

Which benefits trends actually matter?

Not every trend deserves a line in your budget. These four come up most often, and each addresses a problem your employees are likely already signaling.

• Mental health and manager support - EAPs, mental health resources, burnout prevention, and manager support programs, especially valuable where workloads are high or change is constant.
• Financial wellness - retirement education, financial planning, HSA education, tuition reimbursement, student loan assistance, and identity theft protection. Weight these toward your demographics: student loan support for early-career staff, one-on-one planning for those nearing retirement.
• Flexible work - hybrid schedules, flexible hours, alternative work structures, or better leave policies. Not every role allows the same flexibility, but it's worth evaluating where it's possible.
• Lifestyle benefits - pet insurance, gym reimbursements, lifestyle spending accounts, dependent care assistance, elder care resources, fertility or family-building benefits, or extended leave policies. The key is to be intentional. Add lifestyle benefits because they address a demonstrated employee need, not simply because competitors offer them.
  
  

Take a Closer Look at Your Benefits With Lutz

Our HR consulting team helps organizations evaluate benefit programs, review retirement plan strategies, benchmark offerings, assess utilization trends, navigate compliance considerations, and develop retention-focused solutions. Lutz Talent provides HR consulting support in benefits administration, employee relations, training, and policy creation and implementation. Every workforce is different. If you have questions about your benefits strategy, retirement plan offerings, or retention efforts, contact us.

To hear Lutz experts discuss this topic further, you can view our webinar.

• Maximizer, Empathy, Positivity, Input, Strategy

DeAnna Pillen

Outsourced HR Specialist

DeAnna Pillen, Outsourced HR Specialist, began her career in 2016. Before joining Lutz, she worked in human resources and recruiting within the construction and IT industries, developing a strong foundation in both strategic planning and hands-on HR support. 

At Lutz, DeAnna partners with clients to deliver tailored Outsourced HR solutions that align with their current goals and support long-term success. She focuses on building strong, engaged teams and positive workplace cultures while ensuring compliance stays on track. With a people-first mindset and a proactive approach, she helps organizations overcome challenges with strategies designed to fit their unique environments. 

 

DeAnna lives in Gretna, NE, with her husband, Todd, their four children—Calla, Colbie, Connor, and Caleb—and their Texas Heeler, Luna. A proud Husker alum, she enjoys cheering on Nebraska athletics (especially volleyball), and soaking up the sun in Hilton Head Island. 

402.492.2121

dpillen@lutz.us

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• Futuristic, Belief, Arranger, Includer, Context

Chris Wagner, CFP®, CPFA®

Director of Retirement Plan Services, Principal

Chris Wagner, Director of Retirement Plan Services, began his career in 2004. As the leader of Lutz's retirement plan division, he serves as the firm's primary authority on business retirement solutions. His solid foundation in financial advisory and employee benefits, coupled with his background as a financial advisor has positioned him as a trusted expert in this specialized field.

Focusing on retirement solutions, Chris provides strategic advisory services to companies, small businesses, and nonprofit organizations across various industries. He designs and implements benefit strategies that address complex challenges while creating meaningful impact for both employers and employees. Chris values helping organizations create programs that attract and retain talent while helping employees prepare for their financial futures. 

 

At Lutz, Chris makes the complex simple - a talent that defines his approach to retirement planning. He excels at taking intricate regulations, investment options, and organizational needs and transforming them into clear, actionable strategies. Clients appreciate his ability to explain complicated concepts in straightforward terms, making retirement plan decisions more accessible for business owners and their employees alike. 

 

Chris lives in Elkhorn, NE, with his wife Kristin, daughter Brynn, and son Owen. Outside the office, he can be found watching his children's sporting events, playing basketball, golfing, and hiking in the mountains when he can. 

402.827.2077

cwagner@lutz.us

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