Evaluating the Value of Employee Benefits at Your Organization

With the average cost of employee benefits reaching $26,553 per worker per year in the U.S., naturally, employers want reassurance that every dollar is being put to good use. 

This guide explores how to evaluate the value of employee benefits and how to strike the best balance between what’s great for the company and what resonates with your people. We’ll also provide examples of some benefits you won’t want to ignore in 2025, complete with expert insights on why they’re vital. 

How to determine your employee benefits ROI

Employee benefits aren’t cheap. In fact, they make up a huge chunk of company budgets—so you’d better believe leadership is asking, “Are these benefits actually paying off?” But here’s the real kicker: how do you even define “paying off”? Is it about cutting the average cost of your benefits, keeping employees happy, or boosting retention? Ideally, all three. But in reality, the numbers don’t always tell the full story.

“Balancing cost to the company with value to the employee is really about prioritizing what has the most significant impact without overcommitting resources,” says HRDQ’s President and CEO, Bradford Glaser. And he’s right—because benefits aren’t just another line item on a spreadsheet. They shape how employees feel about their work, how long they stay with the company, and whether they’re genuinely engaged.

So, where do you start? Use these indicators: 

Retention and turnover trends 

If turnover rates are high because your employees are flocking to competitors offering shinier perks, that’s a huge red flag. Maybe your benefits package was cutting-edge five years ago, but now? Not so much. The market is shifting, and employees are more tuned in than ever. They know what’s out there, and they’re not afraid to leave for it. 

Productivity rates 

If your employees are drowning in stress, constantly calling in sick, or struggling to stay engaged, maybe they need better mental health resources. Is burnout being addressed? Or are you still operating on a “just push through it” mentality? If you’re wondering why output is lagging, don’t just look at performance reviews—look at the support systems (or lack of them) that could be making or breaking your team’s success. 

Utilization data 

You can offer premium perks but if no one is using them, what’s the point? Maybe that fancy corporate gym membership sounded great on paper, but in reality, your team would rather have a wellness stipend they can use on their own terms. Maybe the free snacks are fun, but what employees really want is a more robust 401(k) match. The numbers won’t lie—your benefits should be working for your people, not just existing on a brochure.

Industry comparison check 

It’s one thing to have an internal benefits strategy, but if you’re getting blown out of the water by competitors, your employees will tell you with their two-week notices. Market research isn’t a “nice to have,” it’s essential. Because employees do their own research, too. They’re on Glassdoor, Reddit, and LinkedIn, talking about which employers are worth it and what’s not. The companies that win are those that are listening. 

How to strike the right balance for companies and employees

Adjusting employee benefits packages isn’t about shifting numbers on a budget spreadsheet. It’s about making decisions that directly impact people’s lives. 

Get it right, and employees feel valued, engaged, and committed to the company. Get it wrong, and you’ll hear about it in exit interviews, online, and through the slow (or not-so-slow) trickle of top talent heading for the door.

So, how do you balance cost-effectiveness with real, meaningful value? How do you take away outdated, overpriced perks without feeling like the villain, while introducing better, smarter benefits that employees actually want?

1. Prioritize impact over tradition 

If a perk isn’t being used or delivering value, it’s fair game for reassessment—but what you replace it with matters. The goal is to maximize impact without wasting resources. Vikrant Bhalodia, Head of Marketing & People Ops at WeblineIndia, explains:

“To balance costs with value, we’ve found that prioritizing benefits with high impact makes a difference. Instead of offering traditional gym memberships, we introduced a wellness allowance. Employees can use it for things that matter to them, whether it’s yoga classes, therapy, or even outdoor activities. This approach feels personal and avoids wasting money on unused perks." 

Employees don’t want cookie-cutter perks, they want choice. And when you shift from rigid, one-size-fits-all perks to flexible, personalized benefits, everyone’s happy.

Learn more: Download our budget guide to see more strategies you can implement to provide enticing benefits at a reasonable cost. It covers 13 strategies for reducing costs and maximizing your budget across your entire suite of employee benefits. 

2. Commit to equity and inclusion 

When benefits feel accessible, relevant, and genuinely useful to everyone, you’ll see stronger engagement and fewer complaints about wasted resources. If your perks only cater to a specific demographic, then it’s time to rethink your strategy. An equitable benefits package means:

• Offering options that work for employees at different life stages (single, married, parents, caregivers, near retirement, etc.).
• Providing inclusive healthcare (mental health, fertility benefits, LGBTQIA+ support).
• Supporting remote, hybrid, and in-office workers equally.

3. Be transparent 

Your people will know when you’re cutting costs, but if they see those savings reinvested into better, more relevant benefits, they’ll appreciate the shift. Be honest about the reasons for your change, and be sure to communicate your new offering to maximize participation in your updated benefits package. 

5 employee benefits that will add value in 2025

The most valuable employee benefits cater to the specific needs of your people. But most companies will find the following types of perks and benefits worth looking at as they create their own packages: 

1. Mental health support 

John Hopkins reports that 26% of Americans of working age will suffer from a diagnosable mental health disorder each year. This can include conditions like anxiety and depression, alongside schizophrenia, bipolar disorder, and obsessive-compulsive disorder. 

Whether work is exacerbating any of these issues or your employees are struggling to perform because of them, employers must offer adequate mental health resources as support. This might include paid time off, counseling, employee assistance programs, and more. 

Kristie Tse, a psychotherapist and founder of Uncover Mental Health Counseling, explains: 

“Employees thrive in environments where they feel supported, whether through access to therapy, mental health days, or resources that help them develop coping tools for stress and anxiety. Encouraging open conversations and offering safe spaces is also key. The results are clear: better job satisfaction, less burnout, and higher productivity. Treating employees as whole people, not just workers, helps meet their needs in meaningful, lasting ways.”

2. Flexibility arrangements 

98% of employees want to work remotely, at least some of the time, for the rest of their careers. Some employers aren’t on board with this pull, preferring instead to execute return-to-office mandates that are creating employee turnover rates 13% higher than companies “more supportive” of remote work. 

Other flexible work arrangements that can support and help retain employees include: 

• Compressed work weeks: Employees work the same hours, but over 4 days instead of 5. Another option is the 9/80 model, where employees work 80 hours over 9 working days. 
• Alternative schedules: Employees may start and end their workday at different times so they can accommodate other priorities and achieve a better work-life balance. 
• Job sharing: Employees split one full-time job between two people, each working a reduced schedule. 

Here’s why Christian Espinosa, Founder and CEO of Blue Goat Cyber, supports flexible work as an affordable option: 

“I expect flexible work arrangements to be among the most valuable benefits for employees. The ability to work remotely, adopt hybrid schedules, or adjust hours offers a level of autonomy that helps employees balance personal responsibilities with professional goals.”

3. Modern pre-tax benefits 

With inflation continuing to squeeze household budgets in 2025, smart employers are revisiting their pre-tax benefit offerings to deliver meaningful financial relief without increasing costs.

Modernized pre-tax platforms are transforming traditionally complex FSAs, HSAs, commuter benefits, and HRAs into streamlined, tech-enabled experiences. These updated solutions feature intelligent card decisioning that recognizes eligible expenses at checkout, digital wallet integration for instant access to funds, and automated administration that eliminates manual claims processing.

The impact is substantial—employees who fully utilize available pre-tax benefits can significantly reduce their tax burden, while employers benefit from reduced payroll taxes. Additionally, platforms that consolidate these benefits with other post-tax lifestyle benefits your company may offer eliminate the administrative burden of managing multiple vendors.

For forward-thinking companies, the focus has shifted from simply offering pre-tax benefits to ensuring they're accessible, user-friendly, and actually utilized by employees. The difference between low and high utilization represents significant dollars left on the table—both for your employees and your bottom line.

Further reading: Download our eBook on modernizing your pre-tax programs to learn more about why legacy vendors fall short, how to vet vendors to ensure they can meet your needs, and how Benepass can help. 

4. Retirement benefits 

Nearly one-third of U.S. retirees consider returning to work for one simple reason: They haven’t saved enough to live off in their twilight years. Retirement plans give your current employees peace of mind they won’t end up in this situation. 

Your people care about their future, far more than they do about company swag or free snacks, so offer them the means to plan for their retirement. Employees want to work for employers that offer a robust and competitive savings plan to support future financial stability. 

And it’s not just about 401(k)s; offering education programs alongside a retirement savings plan can help employees understand personal finance, investing, and long-term planning. This is one easy way to add value without spending much at all.

5. Professional development benefits 

90% of organizations are concerned about employee retention, and offering learning and development opportunities is the top strategy to retain them. Matt Erhard, Managing Partner at Summit Search Group explains the value of this approach: 

“Upskilling offers a dual advantage: It supports employee development while strengthening your organization’s capabilities. To balance costs with value, focus your investment on areas where your company has current skill gaps or anticipates future needs. By aligning upskilling initiatives with strategic goals, you enhance employee satisfaction and reduce the long-term costs of hiring external talent to fill those gaps.”

Flexible employee benefits offer the most value

Employee benefits should never feel like a sunk cost. When you design your benefits strategy thoughtfully, each component will create real value, driving retention, improving engagement, and making your company a destination for top talent.

But the key to unlocking this value? Flexibility.

Benepass makes sure every benefits dollar counts by shifting from generic perks to personalized, high-impact benefits that employees actually use. We offer: 

• Lifestyle Spending Accounts: LSAs give employees the freedom to choose how they use their benefits, for example, wellness programs, learning and development, or family support. Learn how to calculate the ROI of an LSA here. 
• Pre-tax benefits like HRAs, FSAs, and commuter benefits: These tax-advantaged benefits reduce costs while providing real value.

Ready to increase the value of your employee benefits program? Book a free Benepass platform demo today or contact sales@getbenepass.com to learn how to offer meaningful employee benefits.