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Need to Know: Health-Focused Benefits Drive Retention But Engagement Still Lags


Recent data from the Employee Benefit Research Institute (EBRI) and Greenwald Research highlight an important tension in today’s workforce: employees deeply value their benefits, especially health-related offerings, yet many remain disengaged at work. Benefits matter, but benefits alone are not enough.



Here’s what leaders need to know.


1) Health Benefits Are a Retention Lever

Employees consistently rank health insurance and related benefits as among the most important components of their total compensation package. The research points to several clear themes:

  • Workers say health coverage is a primary reason they stay with an employer.

  • Comprehensive benefits contribute directly to perceptions of employer stability.

  • Benefits signal long-term investment in employee well-being.


The message is straightforward: health-focused benefits are not a “perk.” They are foundational to workforce stability.


For employers navigating talent shortages or high turnover, benefit design is no longer just an HR issue—it is a retention strategy.


2) Employees Value Benefits But Many Remain Disengaged

At the same time, the research points to persistent disengagement:

  • A meaningful share of employees report feeling detached from their work.

  • Workers may appreciate benefits while still lacking emotional connection to their employer.

  • Satisfaction with benefits does not automatically translate into higher engagement.


This is a critical distinction.


Offering strong benefits can reduce the likelihood that employees leave.But it does not guarantee they will be fully invested while they stay.


3) The Strategic Gap: Communication and Integration

One of the underlying challenges is understanding. Employees often underestimate the value of their total benefits package. Even when employers invest heavily in coverage, wellness programs, and retirement benefits, that investment may not be fully visible.


Forward-thinking employers are addressing this gap by:

  • Quantifying total compensation in annual benefit statements.

  • Framing benefits as part of a broader culture of care.

  • Connecting health benefits to productivity, resilience, and financial wellness.

  • Reinforcing benefits messaging throughout the year—not just during open enrollment.


Benefits must be positioned as part of a coherent employee experience strategy.


4) What This Means for Employers


Based on these research trends, organizations should consider four practical actions:


1. Protect Core Health Coverage

Strong medical coverage remains a baseline expectation. Cost shifting without thoughtful communication can undermine trust.


2. Expand Holistic Wellness Offerings

Mental health resources, financial wellness programs, and preventive care benefits are increasingly influential in retention decisions.


3. Improve Benefit Literacy

Employees cannot value what they do not understand. Clear, ongoing communication increases perceived value.


4. Align Benefits with Engagement Strategy

Benefits should support culture—not operate in isolation. Pairing benefits with leadership transparency, career growth, and recognition initiatives strengthens impact.


The Bottom Line

Health-focused benefits are powerful retention tools. Employees notice, and they care.

However, benefits alone will not solve engagement challenges. Employers who succeed will be those who:

  • Design competitive benefits,

  • Communicate them effectively,

  • And integrate them into a broader culture of trust, support, and long-term investment.


In today’s labor market, benefits are both a safety net and a signal. The question is not whether they matter, it is whether organizations are leveraging them strategically.


Need a partner in structuring solid benefits plans? The Robin S. Weingast & Associates, Inc. Team is here to help.


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