If you want to attract great talent and keep them around, offering the top 10 employee benefits in 2025 is a smart place to start.
These days, small businesses don’t just compete on salary—benefits matter more than ever. The right perks can set you apart, even if you don’t have a big-company budget. Let’s walk through the top 10 employee benefits that can help you build a stronger, more loyal team.
The Top 10 Employee Benefits You Need to Offer
1. Health Insurance
Health insurance remains one of the most sought-after employee benefits—and for good reason.
It helps you attract strong candidates and keep your current team loyal and productive.
That said, traditional group health insurance plans can be a major expense. According to the Kaiser Family Foundation’s 2024 Employer Health Benefits Survey, the average annual premium for employer-sponsored family coverage reached $25,572 in 2024, marking a 7% increase from the previous year.
If you’re a small employer and that number feels out of reach, you’re not alone. Fortunately, you don’t have to rely solely on expensive group plans. There are more affordable, flexible options that still provide your team with the coverage they need—we’ll explore those next.
2. Health Sharing Plans
Health sharing plans are an alternative to traditional health insurance—but they work a little differently.
Instead of paying premiums to a for-profit insurance company, members join a non-profit community that shares each other’s medical expenses.
These plans aren’t insurance, but they can be a smart, budget-friendly option for small businesses. In fact, many health sharing plans cost about half as much as traditional group health insurance.
Here’s why small employers like them:
- They’re often more affordable.
- They can cover employees and their dependents.
- They usually allow members to choose their own doctors—unlike most HMOs and PPOs.
- They’re flexible and easy to customize for your team’s needs.
Health sharing works best for employees who are generally healthy, since pre-existing conditions may have waiting periods before coverage kicks in.
Want help creating a benefits package that includes health sharing? Talk to a Personal Benefits Manager for a free consultation and personalized recommendations.
3. Direct Primary Care
Direct Primary Care (DPC) offers employees access to primary care services for a flat, monthly fee, without the complexities of traditional insurance.
This is critical, because many lower- and middle-income employees skip going to the doctor because of high deductibles, copays, and other out-of-pocket costs – even when they have insurance.
But when workers skip needed healthcare due to costs, they wind up creating much bigger and more expensive problems down the road.
Direct primary care solves this problem by eliminating the cost barrier that prevents workers from seeing their primary care, family doctors, and pediatricians.
For a flat, predictable monthly fee, workers can see their primary care doctor as often as they need, usually either in person or online or over the phone.
Employees appreciate the ease of access to healthcare and the focus on preventive care, which can reduce long-term health issues.
For employers, DPC can mean lower healthcare costs and healthier employees. It also means much higher employee retention rates and lower turnover.
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4. Disability Insurance
A serious illness or injury can leave an employee unable to work.
Without a paycheck, that’s a huge financial risk for most families.
Here’s the reality:
- 1 in 20 workers will become disabled before retirement.
- Less than 5% of those cases are covered by workers’ comp.
- Social Security disability benefits are minimal and only available in the most severe cases.
That’s why disability insurance matters. It replaces 50% to 65% of an employee’s income if they can’t work due to a covered illness or injury.
Your team sees this as a valuable benefit—and for good reason. It gives them peace of mind, and it can be a major reason someone chooses to stay with your company.
As an employer, you have a couple of options:
- You can pay part or all of the premiums, or
- You can offer it as a voluntary benefit, with employees paying through payroll deductions.
Either way, you’re offering strong financial protection without putting a big dent in your budget.
Want to learn how to set up disability insurance for your team? Talk to a Personal Benefits Manager to get started.
5. Health Reimbursement Arrangements (HRAs)
Health Reimbursement Arrangements (HRAs) let you reimburse employees for medical expenses and even insurance premiums—without offering a traditional group plan.
They’re flexible, customizable, and a great way to control costs while still supporting your team’s healthcare needs.
For small employers, HRAs are one of the top 10 employee benefits worth considering. They provide real value to your workforce without the hefty price tag of group insurance.
Learn more about setting up an HRA for your business on our Complete Guide to Health Reimbursement Accounts for Small Business.
6. Health Savings Accounts (HSAs)
Health Savings Accounts (HSAs) are one of the top 10 employee benefits that offer real value for both employers and employees—especially when paired with a high-deductible health plan.
As an employer, you can set up an HSA for your team, and either you or your employees can contribute to it with pre-tax dollars. That means savings on income taxes and payroll taxes.
HSAs come with a triple tax advantage that’s hard to beat:
- Tax-deductible contributions – Lower your or your employee’s taxable income.
- Tax-free growth – Earnings from interest or investments grow tax-free.
- Tax-free withdrawals – Funds used for qualified medical expenses (like doctor visits, prescriptions, dental, or vision) aren’t taxed.
It’s one of the most efficient ways to save and pay for healthcare costs.
A few things to keep in mind:
- To contribute to an HSA, the employee must be enrolled in a qualified high-deductible health plan (HDHP).
- You can make HSA contributions even easier by offering them through a Section 125 cafeteria plan—which lowers your payroll tax liability while boosting employee benefits.
Bottom line: HSAs are a win-win. They help your team plan ahead for healthcare expenses and give your business a tax-smart way to support employee well-being.
Click here to learn more about HSAs, and how to set one up for your employees.
7. Flexible Hours/Job Sharing
Flexible working hours and job sharing are increasingly popular benefits.
These “lifestyle benefits” require little or no cash outlays from employers. But they allow employees to maintain a much better work-life balance.
This, in turn, leads to higher job satisfaction, retention rates, and productivity.
For small employers, offering such flexibility can be a key differentiator in attracting talent, especially among younger employees and parents.
According to some HR experts, the ability to work from anywhere is the number one most requested employee perk.
In fact, according to a recent report from Envoy, the ability to work remotely or to choose when to come to the office ranked up there with cash compensation benefits like higher 401(k) matches and paid time off.
8. Life Insurance
Life insurance has changed a lot over the years.
While people used to buy it directly from agents, many now count on their benefits at work to provide basic coverage.
That shift puts employers in an important position. Without life insurance through work, millions of families are left underinsured—or not insured at all—if something happens to a primary earner.
Obviously, this is a devastating risk for families to take. And a recent Forbes Advisor survey found that 45% of employees and 43% of employers named life insurance as one of their top in-demand employee benefits.
Employers can deduct the premiums for a death benefit of up to $50,000 in group life insurance coverage as an employee benefit. But this amount is grossly insufficient, by itself. It barely covers one year’s salary for most workers, if that.
That’s where life insurance as a voluntary benefit comes in: Working with quality life insurance carriers, employers can offer much more meaningful death benefits of $250,000, $400,000, or even more, depending on the carrier – at little or no cost to the company.
Employees sign up for the benefit, and then pay the premiums themselves via payroll deduction.
Want to learn more about life insurance as an employee benefit? Contact an HSA For America Personal Benefits Manager.
9. Pet Insurance
For many employees, pets are family—and caring for them is a top priority.
But with more than half of workers living paycheck to paycheck, a surprise vet bill can be a huge source of stress.
That’s why pet insurance is quickly becoming one of the top 10 employee benefits offered at work today. It’s a thoughtful addition that shows you understand what really matters to your team—on and off the clock.
Here’s why it’s gaining traction:
- 63% of pet owners say they’re more likely to stay with an employer that includes pet insurance in their benefits at work.
- Employees with pet insurance are more likely to recommend their employer and report lower stress levels.
- Over 30% of workers aged 18 to 41 list pet insurance as one of their most-wanted perks.
It’s also easy to offer. Pet insurance is usually a voluntary benefit, so employees who want it simply pay the premiums through payroll deduction—with little to no cost for your business.
If you’re looking to add more meaningful benefits at work, pet insurance is a smart and appreciated option.
10. Tuition and Student Loan Repayment Assistance
Student loan debt weighs heavily on millions of employees—especially younger workers.
That’s why tuition and loan repayment assistance has earned a spot among the top 10 employee benefits in today’s workplace.
Offering this benefit can:
- Ease financial stress for your team
- Support professional development
- Help you build a more skilled, motivated workforce
As an employer, you can provide up to $5,250 per year in tax-free tuition assistance per employee. That amount is also tax-deductible for your business. You can also help pay down employees’ student loans, though those payments are considered taxable income for the employee.
For many younger workers, student loan debt prevents them from contributing to retirement plans—even if you offer generous 401(k) matching. In those cases, the retirement benefit might go unused.
A smart solution? Match student loan payments the same way you’d match 401(k) contributions. This makes your benefits at work more relevant—and more valuable—to the employees who need support the most.
Think Outside the Box
Even if traditional benefits seem out of reach, you still have plenty of ways to offer real value to your team without breaking the bank.
Employee-paid voluntary benefits are easy to set up and give you the flexibility to offer protection that fits a wide range of needs. With payroll deduction, your team gets convenient access to extra coverage, and you stay budget-friendly.
In addition to the top 10 employee benefits we’ve covered, here are a few more smart options you can offer:
- Critical Illness Insurance – Pays a lump sum after a serious diagnosis (like cancer or a heart attack). Employees can use it however they need—whether it’s for medical bills, travel, or taking time off work.
- Accident & Hospital Insurance – Helps cover out-of-pocket costs from accidents or hospital stays. Great for workers with high deductibles or health sharing plans.
- Identity Theft Protection – Offers peace of mind in today’s digital world.
- Dental and Vision Plans – Employees always appreciate help covering routine care or unexpected expenses.
These extra benefits show your team that you care—and they can help you stand out in a competitive hiring market.
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Conclusion
Offering the right employee benefits isn’t just about checking boxes—it’s about creating a workplace where people want to stay and grow.
For small employers, that means being smart, flexible, and tuned in to what your team actually needs.
By combining essentials like health insurance with creative, affordable perks like pet insurance, HSAs, and student loan assistance, you can build a benefits package that punches well above its weight. These aren’t just perks—they’re powerful tools for recruiting top talent, reducing turnover, and boosting morale.
Ready to Take the Next Step?
You don’t have to go it alone.
Contact a Personal Benefits Manager for a free consultation and see how easy it can be to build a benefits package that fits your business and supports your team.
Want more guidance? Download our Complete Guide to Small Business Healthcare Plans and get expert help tailoring the right mix of benefits for 2025 and beyond.
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