Top 5 Employee Benefits Driving Talent Acquisition and Retention in 2026

The competition for talent has evolved beyond salary negotiations and standard vacation packages. Health care coverage and paid time off (PTO) have become table stakes—baseline expectations rather than competitive differentiators. According to Voya's recent Plan Sponsor Sentiment Survey¹, employers are rapidly expanding their benefits offerings to help address the full spectrum of employee needs. 

To attract and retain top talent in 2026 and beyond, it’s important to consider comprehensive benefits that address financial security, mental health and the distinct needs of employees in different life stages. Voya’s research identified the five employee benefits that are driving acquisition and retention in 2026. These categories exclude health insurance, which is tied with retirement savings plans in importance, and PTO, which was not ranked. The top five benefits include: 

1. Comprehensive retirement planning
2. Mental health and holistic well-being support
3. Career development or education support
4. Financial education and wellness programs
5. Tailored support for key demographic groups 

This blog will explore these five employee benefits and provide three next steps to consider when implementing your benefits strategy. 

Expanding Benefits Beyond Health Care 

While health care remains essential—with 97% of employers citing rising health care costs as critical to benefits planning—it may no longer set employers apart. The real differentiation often comes from what else is on the table. Employers recognize that meeting evolving employee expectations (rated 96% important) and competing for top talent (90% important) may require creative benefits planning. 

The numbers tell the story: 47% of employers are increasing investment in mental health services, another 47% are boosting employee incentive programs, and significant portions are expanding financial wellness programs. This represents a fundamental shift to strategic benefits that proactively support employees’ needs and preferences. As a result, this targeted focus on employee wellbeing may lead to better retention. 

Benefit #1: Comprehensive Retirement Planning 

Retirement plans top the list, with 77% of employers identifying them as most critical to employee financial security. However, a troubling perception gap exists: while 92% of plan sponsors believe their employees are prepared for retirement, only 55% of employees actually feel ready. 

Modern retirement benefits extend well beyond basic 401(k) matching. Employers are showing strong interest in innovative features: 

• 70% are interested in adding in-plan annuities offering guaranteed lifetime income.
• 64% want target-date funds that help convert savings to retirement income.
• 63% are interested in digital self-service retail accounts. 

These enhancements address real challenges. Plan sponsors report that 52% of employees aren't contributing enough to retirement plans, and 43% report employees taking early withdrawals or loans. With 91% of employers agreeing that employees want more support when transitioning to retirement, comprehensive retirement planning reflects a long-term commitment to employee financial health.

Benefit #2: Mental Health & Holistic Well-being Support

Mental health benefits are rated 94%  important to the employee population, making them a leading investment priority for employers. In fact, 47% of employers are increasing mental health services spending in the next year—tied for the highest increase among all benefit categories. 

This investment reflects a clear need: 93% of employers agree they can do more to address employee mental health issues, stress and burnout. The importance of detecting signs of stress or burnout and providing proactive support rated 94% important in overall benefits planning. 

Holistic wellbeing extends beyond mental health. Physical health benefits and programs, caregiver support services, and flexible work arrangements are all highly valued for retention purposes, at over 80%. This comprehensive approach recognizes that mental, physical and financial health are interconnected. 

Planning tip: Consider working with a benefits administration provider when adding health care point solutions to your strategy. This can help simplify the process of choosing and managing health solutions that are pre-vetted by the provider. 

Benefit #3: Career Development or Education Support 

Survey respondents told Voya that employee retention relies on other supports that help people grow and adapt over the course of their career journeys, even if they might not fit neatly into a traditional understanding of employee benefits. Of these supports, career development or education support ranks highest with 94% of plan sponsors reporting an important correlation to retention. Benefits in this area may include: 

• Tuition reimbursement
• Stipends for professional certifications or continuing education credits
• Access to a Learning Management System (LMS)
• Career coaching or mentorship programs 

To meet these needs, employers can consider ways to expand existing support in these areas or improve participation through strategic communication and educational resources. It may also be helpful to ensure that leadership is embodying these priorities, so that they become part of organizational culture and not simply another benefit program to be administered by your People team. 

Benefit #4: Financial Education & Wellness Programs 

Financial education and planning ranks third at 28% among critical benefits, with financial wellness programs rated 95% important by employers overall. This focus addresses a key challenge: 39% of employers cite helping employees maximize retirement benefits as a major obstacle, while 38% struggle with helping employees maximize overall benefit value. 

Life insurance ranks second at 35% among benefits most critical to employee financial security. This category extends beyond basic coverage to include short-term and long-term disability insurance (rated 91% important to employees) and voluntary benefits like critical illness/specified disease insurance, hospital indemnity insurance and accident insurance (26% consider these critical). 

The solution lies in comprehensive financial education. Employers show strong interest in areas such as: 

• Financial tools to help make benefits decisions (94% rate as important)
• Advisory services and managed accounts (89% important)
• Help to maximize benefit dollars across all offerings (62% interested) 

Notably, 90% of employers agree they have a responsibility to help employees increase their overall financial wellness.  

Benefit #5: Tailored Support for Key Demographic Groups 

The final benefit in the top five is a broader category that includes retirement transition, voluntary benefit offerings and flexible work arrangements. These can generally be tailored for Gen X, Millennials and pre-retirees, which are the top three priorities when designing benefits. 

These segments require different support structures. There's 59% interest in student loan debt management programs and 62% interest in help with financial planning for important life events. Expanding your voluntary benefit offerings can be one way to enable employees to tap into the coverage and resources they need, even as those needs likely change over time. The bottom line: one-size-fits-all benefits no longer work in a multigenerational workforce with varying life-stage priorities. 

3 Next Steps for Your Employee Benefits Strategy 

If talent retention is a top priority for your organization in 2026, consider using this research to shape your employee benefits strategy. Here are three next steps to help you get started: 

1. Identify gaps and opportunities – Evaluate your current employee benefits strategy and look for any gaps that may exist. For example, you may discover that a select portion of your workforce is not contributing to their retirement plans. This could indicate an opportunity to create targeted education and engagement initiatives that will help employees feel more prepared for retirement. 

2. Create an optimization plan – Take a strategic approach when optimizing your benefits strategy, which may include short and long-term goals. It’s important to consider how you can help meet the benefits needs of an evolving workforce. For instance, a large population of Gen X employees may require a shift towards certain benefits over the next 5-10 years. Similarly, an organization that is rapidly shifting towards Gen Z employees may want to consider the unique benefits needs of this demographic. 

3. Consult with a benefits administrator – An experienced benefits administrator can help you implement and manage a comprehensive benefits strategy that helps drive retention. The optimal provider offers both technological capabilities and strategic guidance to support your workforce's diverse needs. Choosing a provider who understands the connection between strategic benefits design and talent retention will position your organization to build a benefits program that truly supports your employees throughout their careers. 

Planning for the Future of Work 

Benefits strategy has evolved from cost center to strategic retention tool. The employers who approach benefits as comprehensive investments in employee wellbeing—spanning financial security, mental health and life-stage-specific needs, will be well-positioned to find success in attracting and retaining talent in 2026. 

Healthcare coverage remains essential, but employers must offer substantially more to truly improve retention, and this transformation is already well underway. 

Identifying top employee benefits is an important step in designing an optimal benefits program. Download our planning and strategy toolkit for additional resources that can help improve your benefits administration processes and develop a benefits strategy for a multigenerational workforce. 

Download now.