Top 5 employee benefits driving talent acquisition and retention in 2026

Summary

Employers that want to retain talent in 2026 should consider thinking beyond standard benefits like health insurance and PTO. This article discusses results from Voya’s recent Plan Sponsor Sentiment Survey¹ and includes:

• Why comprehensive retirement planning is one of the top benefits that drives talent acquisition and retention.
• How employers are ranking mental health support and career development.
• Current challenges in financial education and wellness programs.
• How to think about tailored support for different demographic groups.
• Three next steps to help shape your employee benefits strategy.

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 Survey, 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 top employee benefits that are driving acquisition and retention in 2026, excluding compensation and PTO. The top five benefits (besides health insurance) include:

1. Retirement savings plans/benefits
2. Mental health and well-being resources
3. Career development or education support
4. Financial wellness programs
5. Tailored support for key demographic groups

This article 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 planning to increase their investment in mental health services over the next year, while another 47% are planning to increase their investment in employee incentive programs. Nearly four in 10 also plan to increase investment in 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 well-being may lead to better retention.

Benefit No. 1: Retirement savings plans and benefits

Employer-sponsored retirement savings plans top the list, with 77% of employers identifying them as the most critical financial benefit to employee financial security. However, a troubling perception gap exists: While 92% of employers believe their employees are prepared for retirement, only 54% 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% are interested in target-date funds that help convert savings to retirement income.
• 63% are interested in fully digital self-service retail accounts. 

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

Further reading: To optimize your retirement planning benefits, learn about 5 retirement income methods that can support your employees with flexible options.

Benefit No. 2: Mental health and well-being resources

94% of employers rate mental health benefits as important to their employee population, making them a leading investment priority. 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 nudges for employee wellness rated 94% important in overall benefits planning.

Holistic well-being extends beyond mental health. Over 80% of employers rate physical health benefits and programs, caregiver support services and flexible work arrangements as important to their employee population. 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 No. 3: Career development or education support

Retaining talent requires more than traditional benefits packages — it demands a holistic approach that supports professional growth and career development at every stage of the employee journey. This sentiment is supported by Voya’s survey, as 94% of employers report that career development or education supports are considered important benefits when it comes to talent acquisition and 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 No. 4: Financial education and wellness programs

Among financial benefits employers believe to be most critical to their employees' sense of financial security, financial education and planning ranks third at 28%, behind retirement plans (77%) and life insurance (35%). Additionally, 95% of employers rate financial wellness benefits and programs as important to their employee population. This focus addresses a key challenge: 39% of employers cite helping employees maximize retirement benefits as one of the greatest challenges in managing employee benefits and savings programs, 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 also extends beyond basic coverage, with 26% of employers reporting voluntary benefits (such as critical illness/specified disease insurance, hospital indemnity insurance and accident insurance) to be among the most critical to their employees’ sense of financial security. 91% of employers also find include short-term and long-term disability insurance to be extremely or somewhat important to their employees.

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 retirement, HSA, health care and benefits (62% as interested)

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

Benefit No. 5: Tailored support for key demographic groups

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

These segments require different support structures. Among employers, 59% are interested in student loan debt management programs and 62% are interested 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 help 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 toward certain benefits over the next five to 10 years. Similarly, an organization that is rapidly shifting toward Gen Z employees may want to consider the unique benefits needs of this demographic.
3. Consult with a retirement plan advisor or benefits administrator – Experienced retirement and benefits professionals can help you implement and manage a comprehensive benefits strategy that helps drive retention. The optimal providers offer 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 well-being — 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 should consider offering substantially more benefits options that have the potential to help improve retention, and this transformation is already well underway.

For more information, talk to your Voya Representative.