How personalized benefits can attract and retain top employees

In today’s competitive labor market, attracting and retaining talented employees is a concern and challenge for businesses worldwide. Gone are the days when a one-size-fits-all benefits package would suffice. The modern employee may be seeking more than just a paycheck; they are also in pursuit of a role that offers a personalized benefits package that aligns with their individual needs, lifestyle, and career aspirations. This paradigm shift has made personalized benefits a cornerstone strategy for companies aiming to attract and retain the best talent.

When you think of benefits, health insurance may be the first thing that comes to mind. And it’s a significant benefit — nearly 153 million people are covered by employer-sponsored insurance, according to research from KFF.¹ But, health insurance is just one part of the employer benefit equation. Today’s employees are looking for more personalized benefits packages that demonstrate an employer’s commitment to helping them achieve their personal and professional goals. Companies that offer customized benefits will be well positioned to attract top talent and keep them on their teams for years to come.

What are personalized benefits?

Personalized benefits transcend conventional health insurance offerings, retirement plans, and paid time off. They are tailored to cater to the multifaceted aspects of an employee’s life, encompassing flexible working hours, remote work opportunities, professional development programs, wellness initiatives, financial planning services, and even pet insurance. This approach acknowledges that employees are not a monolith but individuals with unique circumstances, goals, and challenges. 

The appeal of personalized benefits lies in their ability to adapt to employees’ needs at different stages of their lives. For example, younger employees might prioritize professional development opportunities and student loan repayment assistance, while older employees may value retirement planning services and health care options that include coverage for dependents. Personalization can also extend to rewards programs that highlight employees who have gone above and beyond expectations. Whether through benefits or rewards, “today’s workers need a much more customized experience to feel appreciated and valued for what they do,” reports Deloitte.²

The argument for personalization

The rise of remote work has amplified the need for benefits that support a flexible and often non-traditional work arrangement. The COVID-19 pandemic accelerated this trend, with many employees experiencing the benefits of remote work first-hand. “It’s a benefit to be able to reside in a lower-cost-of-living locale while earning the income one would in a more expensive one,” states Raj Choudhury in Harvard Business Review. Of course, this is only true if companies don’t adjust wages based on where an employee lives.

Whether employees commute to work, work from home, or take a hybrid approach, personalization demonstrates a company’s commitment to their well-being. This is why wellness initiatives have become a significant component of personalized benefits. These can range from on-site fitness facilities and mental health days to nutrition counseling and stress management programs. Other personalized benefits include such things as maternity leave, paid time off, and pet benefits.

The shift towards personalized benefits reflects a broader change in the workplace — recognizing employees as individuals with unique needs, aspirations, and challenges rather than as a collective whole. For companies aiming to attract and keep top talent, it’s no longer a question of whether to offer personalized benefits but how creatively and effectively they can be implemented. Those who embrace this shift will most likely not only enrich the lives of their employees but also position themselves for enduring success in an ever-evolving business landscape.

This article was written by Jia Rizvi from Forbes and was legally licensed through the DiveMarketplace by Industry Dive. Please direct all licensing questions to legal@industrydive.com.