Benefits Disconnect: New Study Reveals 73% of Employees Would Stay for Better Personalized Programs

Employers miss the mark on flexibility and financial wellness despite strong benefit offerings, Hub survey shows.
By: | September 15, 2025
benefits enrollment

Nearly three-quarters of employees say they would be more likely to stay with their current employer if offered comprehensive and personalized benefits, yet significant gaps persist between what companies provide and what workers actually value, according to Hub International’s 2025 US Workforce Vitality Gap Index.

The survey reveals a fundamental shift in employee priorities that many employers have yet to recognize, according to the report. While 47% of decision-makers believe compensation and benefits remain the top driver of employee satisfaction, workers actually rank flexibility and work-life balance as their highest priority — ahead of pay, benefits, and job security.

This preference for flexibility cuts across all age groups but peaks among 35-44-year-old employees, the survey found. Even workers aged 55 and older, traditionally focused on compensation and retirement benefits, now prioritize work-life balance at surprising rates, with 37% ranking it as their top value.

The survey data shows particularly strong demand among caregivers. More than 80% of employees caring for children or adults ranked flexibility among their top three workplace values, with 44% of adult caregivers calling it their number one priority. Among those looking to expand their families, eight in 10 placed flexibility in their top three values.

Financial stress emerges as the leading productivity killer across the workforce, according to the report. Half of all employees surveyed identified financial concerns as their primary workplace stressor, with those aged 35-44 experiencing the highest impact at 52%. Young professionals aren’t far behind — 51% of 18-24-year-olds report financial concerns affecting their work performance.

Student debt compounds these pressures, with 68% of employees aged 18-24 and 41% of those 25-34 carrying education loans, the survey found. Yet while retirement planning tops the list of valued financial wellness benefits for 46% of employees, personal wealth planning — which younger workers aged 18-34 find most meaningful — is offered by only 53% of employers, the report noted.

Critical Gaps Emerge in Mental Health and Workplace Culture

Despite widespread recognition of mental health needs, utilization remains low, according to the report. While about one in four employees express mental health concerns, less than 25% of those workers participate in available wellbeing programs. This disconnect is most pronounced among younger employees, with 35% of 18-24-year-olds and 39% of 25-34-year-olds indicating they need mental health support.

The survey also uncovers a blind spot in how employers perceive workplace stressors, the report said. Decision-makers ranked company and workplace issues sixth out of eight factors affecting productivity, while employees placed them third. Twenty-eight percent of workers strongly agree that corporate culture — specifically the actions of their company, managers, and colleagues — negatively impacts their productivity.

Health concerns affect productivity more broadly than employers realize, the survey showed. While only 20% of employers believe health issues are a top productivity factor, 41% of employees report that health concerns impact their attendance or performance. The effect is particularly acute among younger workers, with 45% of 24-35-year-olds and 42% of 18-24-year-olds reporting health-related productivity issues.

Data-Driven Personalization Key to Closing Benefits Gap

With 73% of employers planning benefits changes in 2025 — and 72% of those looking to expand offerings — organizations have a critical opportunity to realign their programs with employee needs, according to Hub.

Currently, 75% of benefits decision-makers rely primarily on employee surveys, while less than half utilize demographic analysis or external consultants. This limited approach may explain why gaps persist even when employers invest in new benefits. For instance, while 58% of employees say they would use expanded mental health benefits or gym memberships if offered, actual utilization of existing mental health programs remains minimal.

The path forward requires a more sophisticated approach to benefits design. Employers must leverage comprehensive data analytics to understand not just what employees say they want, but how different segments of their workforce actually use benefits, the report noted.

Obtain the full report here. &

The R&I Editorial Team can be reached at [email protected].

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