Employee Retention Research

73% of Employees Stay Longer With Better Benefits

New research reveals exactly what employees want from their benefits package—and how smart employers are using supplemental health plans to cut turnover by 30%.

📊 Research Report • 8 min read • Updated February 2026

The Employee Retention Crisis

The numbers don't lie. According to recent research from MetLife and industry surveys of HR professionals at mid-to-large U.S. companies, employee retention has become the #1 challenge facing employers today.

73% of employees would stay longer with their current employer if offered more benefits

What Employees Actually Want (The Data)

We surveyed HR professionals at companies ranging from 101-1,000+ employees across multiple industries. Here's what we discovered about employee priorities:

49%
would pay more for benefits that actually fit their needs
55%
consider supplemental health/wellness programs necessary to accept a job offer
84%
of employers say improving workforce health is their top benefits goal

The Hidden Cost of Turnover

Before we dive into solutions, let's talk about what turnover actually costs your business:

Real Turnover Costs (Per Employee)

Replacement Hiring $15,000 - $75,000
Lost Productivity 6-9 months salary
Training & Onboarding $5,000 - $25,000
Total Cost 50-200% of annual salary

Case Study: Manufacturing Company Cuts Turnover 30%

200 Employees
30% Turnover Reduction
$450K Annual Savings

The Challenge

A Ohio-based manufacturing company was losing 15% of their workforce annually. With an average salary of $50,000, each departure cost them approximately $37,500 in replacement costs.

Annual turnover cost: $562,500 (30 employees × $37,500)

The Solution

They implemented a Section 125 supplemental health plan that provided:

  • Free prescriptions for 1,000+ medications
  • $0 telehealth visits
  • Preventive care coverage
  • Pre-tax premium deductions

The Results

Within 12 months:

  • Turnover dropped from 15% to 10.5%
  • Employee satisfaction scores increased 23%
  • Saved $450,000 in turnover costs
  • Program cost: $120,000 annually

Net ROI: 275%

Industry Breakdown: Who's Leading the Change

Our research shows certain industries are ahead of the curve in supplemental benefits:

#1

Healthcare/Pharma (13.75%)

Leading adoption of supplemental health benefits, likely due to industry knowledge of healthcare gaps.

#2

Financial Services (10%)

Focus on comprehensive benefits packages to attract top talent in competitive market.

#3

Manufacturing

Using supplemental benefits to compete with tech companies for skilled workers.

What Works: The 5 Benefits Employees Actually Use

Based on utilization data from 500+ client implementations:

1

Free Prescription Medications

94% utilization $400/year per employee

Generic medications at $0 copay. Covers diabetes, hypertension, depression, and more.

2

24/7 Telehealth Access

87% utilization $150/year per employee

$0 virtual doctor visits. Reduces ER visits by 40% and improves early intervention.

3

Preventive Care Coverage

76% utilization $200/year per employee

Annual checkups, screenings, and vaccinations with minimal out-of-pocket costs.

4

Mental Health Support

68% utilization $300/year per employee

Counseling services, stress management, and mental wellness programs.

5

Pre-Tax Premium Advantages

100% participation $250/year per employee

Reduces taxable income, saving both employer and employee on payroll taxes.

2026 Trends: What's Changing

Our latest research reveals several key trends shaping employee benefits:

🎯 Personalization is King

49% of employees will pay more for benefits that fit their specific needs. One-size-fits-all packages are becoming obsolete.

💊 Healthcare Access Over Coverage

Employees prefer immediate access to care (telehealth, free meds) over traditional insurance with high deductibles.

💰 Cost Transparency

58.75% of organizations are maintaining same coverage costs, focusing on value rather than premium reductions.

🏃‍♀️ Wellness Integration

84% of employers prioritize workforce health, leading to integrated wellness and healthcare benefits.

Implementation Guide: Getting Started

Based on successful implementations across 500+ companies:

1

Assess Your Current Situation

  • Calculate current turnover costs
  • Survey employees about benefits priorities
  • Review major medical utilization data
  • Identify coverage gaps
2

Choose the Right Supplemental Plan

  • Ensure Section 125 compliance for tax benefits
  • Focus on high-utilization benefits (prescriptions, telehealth)
  • Look for plans that stack with existing coverage
  • Verify provider network quality
3

Launch and Communicate

  • Use multiple communication channels
  • Provide concrete examples of savings
  • Offer enrollment support
  • Track participation and feedback
4

Measure and Optimize

  • Monitor retention rates
  • Track healthcare utilization
  • Calculate ROI quarterly
  • Adjust based on employee feedback

Ready to Cut Turnover Costs?

The data is clear: employees want better benefits, and employers who provide them see significant retention improvements and cost savings.

$750 Average savings per employee per year
98.4% Client renewal rate
30 days Implementation timeline

Calculate Your Potential Savings

See exactly how much your company could save with supplemental health benefits.

Run the Numbers →