Employee benefits have long played an important role in attracting and retaining talent. But as workforce needs shift and healthcare costs continue to rise, employers are taking a closer look at whether their benefits investments are delivering meaningful value.
Understanding employee benefits ROI starts with looking beyond cost and focusing on the impact benefits can have on attraction, retention and employee engagement.
Marsh McLennan Agency’s 2026 National Benefits Strategy Survey shows how employers are responding to changing workforce needs while balancing program costs. The survey points to five areas employers may want to consider when evaluating the value of their benefits strategy.
1. Benefits can help strengthen retention and engagement
Attracting employees is only part of the challenge. Keeping them engaged and giving them reasons to stay remains an important consideration for employers.
The survey found that 33% of employers have expanded perks and benefits beyond traditional offerings, while 20% are providing additional paid time off. Employers are also looking beyond benefits alone, with 59% increasing compensation and 49% updating onboarding to improve the employee experience.
These investments show how benefits can support a broader retention strategy. Aligning offerings with what employees value can help strengthen recruitment, retention and engagement.
2. Cost management and value need to work together
Healthcare and pharmacy costs continue to put pressure on employer-sponsored benefits programs. That makes cost management important, but reducing spending alone doesn’t necessarily create greater value.
Employers can look at where their benefits dollars are going, how programs are being used and whether those investments are addressing the needs of their workforce. This can include reviewing plan design, evaluating vendors and identifying opportunities to better manage medical and pharmacy spend.
The goal is to find the right balance between managing costs today and maintaining benefits that continue to provide value to employees.
3. Benefits should reflect what employees need today
There is no single benefits package that works for every organization. Employees may be balancing different health needs, family responsibilities, financial pressures and expectations about how and where they work.
The survey shows employers continuing to evaluate areas such as mental health and well-being, virtual health services and family-focused benefits as part of their overall strategy.
Taking a closer look at workforce demographics, employee feedback and utilization can help employers determine where their benefits investments may have the greatest impact. Rather than adding programs simply to offer more, employers can focus on benefits that respond to the needs of their workforce.
4. Data can help employers make more informed benefits decisions
Determining the value of a benefits program requires more than looking at what is offered. Employers also need to understand how their strategy compares with peers and how employees are responding to it.
Nearly half of employers currently administer employee engagement surveys, with another 13% planning to introduce them in the coming year. That feedback, combined with benefits utilization, claims data and benchmarking, can provide a clearer picture of where a program is working and where there may be opportunities to adjust.
Using these insights can help employers prioritize investments and make benefits decisions based on the needs of both their workforce and their organization.
5. Benefits only provide value when employees understand and use them
Even a strong benefits program can fall short if employees don’t know what is available or how to use it.
As benefits programs become more complex, communication plays an increasingly important role in connecting employees with the resources available to them. Employers are also adopting more digital tools to make benefits information easier to access. The survey found that 80% of organizations use online benefits administration software with self-enrollment capabilities, 51% use apps for benefits enrollment and 34% offer a benefits communication mobile app with push notifications.
A thoughtful communication strategy can help employees better understand their options, make informed decisions and take advantage of the benefits their employer is investing in.
Getting more value from your employee benefits strategy
There isn’t one benefit or program that determines ROI. The value of an employee benefits strategy comes from how well the pieces work together to support employees while meeting the needs of the organization.
For employers, that means looking beyond the number of benefits offered and considering whether those investments address workforce priorities, help manage costs and reach employees effectively.
Explore the 2026 National Benefits Strategy Survey for ideas to help inform your benefits strategy and priorities.
