A good paycheck, sure. But they want more. Large employers typically offer an extensive menu of employee benefits, from comprehensive to medical coverage to free massages, address employee concerns. In most cases, small businesses cannot offer the same choices; the cost is just too great. But small businesses can be responsive to the wants and needs of their staff and offer those benefits best suited to the situation. Here is what employees want and ways to offer them that won’t break your budget.
Which benefits are most desired?
MetLife’s 23rd Annual U.S. Employee Benefit Trends Study 2025 found that the holistic health of employees—mental health, financial health, social health, and physical health—has been declining, especially for Gen Zs. Why? Some causes are related to “current cultural and macroeconomic moments,” including geopolitical crises, climate change, isolation, and inequity/discrimination. This decline impacts productivity, employee retention, and (in my opinion) company culture and employee morale. While 87% of employers say they care about their employees, employees don’t all see it this way; they want their company to provide certain benefits. Continue reading to see what these benefits are.
Flexibility/work-life balance
Employees perform better on the job when they feel more in control of their lives. Employers can help by offering:
- Remote work arrangements. While not all employees want to work from home, many like the option of working solely from home or at least some days a week.
- Work hours/days (shift patterns). A study found that a 4-day work week (32 hours with no reduction in pay) reduced stress and burnout among employees and business profits increased. Because of their nature, not all businesses can operate on this basis, but it may be possible to selectively offer employees some choices in the hours or shifts that they work.
- Paid and unpaid time off. Employees need time off for personal or family reasons (e.g., a child is home sick). While federal law mandates unpaid family and medical leave time for employers with 50 or more employees, some states have unpaid or paid leave requirement. Employers may be able to cover the cost of paid leave through insurance for this purpose. Starting in 2026, the federal family and medical leave credit can help defray the cost of this insurance in addition to the direct cost of the benefit. State tax breaks may also apply.
Professional growth/training
In the Met Survey referenced earlier and in many other studies, many employees express a desire to learn and grow, and want their company to help them do it.
- Technical skills. Good employees want to better themselves by learning new skills to help their job performance.
- Upskilling. AI is looming as a threat to many employees. Helping them through upskilling so they can handle the tasks of tomorrow (i.e., using AI to enhance their activities) can alleviate job anxiety.
- Soft skills (leadership training and communication skills). This type of training is commonly done through mentorship (e.g., more senior employees taking younger employees under their wing).
Note: Employers can pay for courses and training for employees on a tax-free basis for them and a deductible basis for the company (with no payroll taxes) by using an educational assistance plan. The benefit limit for 2025 is $5,250 per employee, and this dollar limit will be adjusted for inflation after 2025. An employer does not have to expend the full amount; a benefit of $1,000 or $2,000 can be offered to an employee under this written plan.
Employee benefits and wellness programs
Employees want a range of benefits, especially personalized ones, and they want them to be affordable if the employer doesn’t pick up some or all of the tab.
- Benefits. A basic group health plan or other medical coverage is a given. But employees want more. Paid leave ranks high in highly-valued benefits, along with dental and vision coverage and pet insurance. Other desired benefits include 401(k)s and life insurance.
- Wellness programs. These programs can be:
- Physical programs: fitness facilities (on-site gyms or gym memberships); fitness classes (e.g., yoga; high-intensity interval training); health education (e.g., health diet plans).
- Mental health programs: employer-provided assistance programs (EAPs) for counseling; stress management workshops; mindfulness/medication workshops.
- Financial support programs: access to financial counseling; programs on financial literacy.
Final thought
Think about benefits you offer now, what you may begin to offer next year, and how you’ll pay for it. Discuss plans with your CPA or other tax adviser to see whether tax breaks can help defray the cost of some offerings and check out the tax treatment of fringe benefits from the IRS. Draft your budget accordingly.
Read more about employee benefits in this list of blogs here.
