Health Benefits as a Retention Strategy: What Employers Should Optimize First

Health benefits can be one of the most visible investments an employer makes in its workforce. But a plan that looks competitive on paper can still disappoint employees if it is unaffordable, confusing or difficult to use.

START WITH EMPLOYEE VALUE, NOT PLAN COUNT

SHRM's 2025 survey found health-related benefits were rated very or extremely important by 88% of employers. The practical implication is not “buy the richest plan.” It is to optimize the value employees actually experience.

FIVE QUESTIONS TO ASK

1. Affordability: What does employee-only and family coverage actually cost employees?
2. Access: Are the doctors, facilities, medications and virtual-care options employees need available?
3. Usability: Do deductibles, copays and navigation make the benefit practical to use?
4. Communication: Do employees understand what the company is paying for?
5. Efficiency: Are employer dollars going toward benefits employees value?

TELEHEALTH CAN BE PART OF THE ACCESS STRATEGY

Virtual care can reduce friction for routine needs, but it should be evaluated alongside network, pharmacy, behavioral-health and primary-care access rather than treated as a substitute for a complete benefits strategy.

COMMUNICATION IS PART OF THE BENEFIT

If employees do not know a service exists, cannot find it or do not understand the cost, the benefit's perceived value collapses. Build benefit education into onboarding and repeat it during the year.

Learn more about health plan optimization and group health insurance strategy.