Why Competitive Health Benefits for Employees Can Make or Break Retention
A practical guide for small businesses rethinking their health benefits strategy.
In a hiring market where top talent can choose between multiple offers, strong health benefits for employees have become one of the clearest signals of how much a company truly values its people. Competitive benefits no longer function as a checklist item - they shape trust, influence satisfaction, and quietly determine whether employees decide to stay or leave.
“A very senior person in the company is leaving - not because of a lack of opportunities, but because the company changed its insurance plan.”
- a senior HR leader, sharing a cautionary tale
That’s a real story an HR leader told us. The loss of a valued employee due to a benefits change was a wake-up call for her team - prompting them to seek forward-thinking solutions to complement the new plan and rebuild trust. And this isn’t a rare story; it’s a symptom of something deeper. Employees don’t just want a decent health plan on paper. They want to feel like someone’s got their back when things hurt the most.
The data backs this up. Employees who feel cared for by their employer are 1.3× more likely to stay loyal and 1.2× more productive [Source]. Real, relevant employee health benefits that truly support people aren’t ‘nice-to-have’ extras - they’re at the heart of what makes employees stay, show up, and thrive.
So, how can you show that you’ve got your employees’ backs? Beyond the basics of insurance, there are innovative benefits that employees absolutely love - perks that prove you’re invested in their health and lives.
Here are a few key health benefits that can give your small business’s employee benefits package a competitive edge and boost retention:
1. Medical Bill Protection
Today, there are technological solutions that function as AI patient advocates - Octi is an example of an add-on for any existing health plan, becoming an added layer of protection when it matters most: when the medical bill arrives.
It’s extremely relevant as a healthcare solution for small businesses that complements existing plans, especially in cases of high-deductible programs.
This kind of benefit helps companies deliver better and more competitive employee benefits for employees. Octi’s AI reviews every case personally and not only helps employees break down and manage their bills, but also reduces their debt by an average of 61% per bill (Press for further info on the process).
This kind of support goes a long way to prove to your people that you have their back in the toughest moments.
2. Telehealth Services
Virtual care lets employees consult doctors and specialists 24/7 via phone or video, saving them time and money. The convenience is hugely appreciated - in fact, about 70% of employees now prefer virtual doctor visits for non-emergency care [Source].
Services like Teladoc Health give even small companies access to on-demand medical advice and treatment, allowing staff to get care quickly from anywhere.
By making healthcare easier to reach, telehealth demonstrates that you value your employees’ time and well-being, which in turn builds loyalty.
3. Mental Health Support
With stress and burnout on the rise, providing mental health resources is a game-changer. This could include counseling services, therapy sessions (in-person or via apps), meditation programs, or an Employee Assistance Program.
Employees increasingly expect this kind of support - 59% of U.S. workers said they would stay at a job because it offers robust mental health benefits [Source].
Platforms like Lyra Health connect employees to licensed therapists and coaches quickly, often with just a few clicks.
When you invest in mental health, you’re showing employees that you care about them as whole people, not just as workers – and that builds tremendous trust and retention.
4. Fertility & Family-Planning Benefits
Starting or growing a family is a major life moment - and employees deeply appreciate employers who support them in that journey.
Whether it’s fertility treatment coverage, IVF support, adoption assistance, or parental leave policies, these benefits can set you apart.
Recent data shows 72% of employees would stay longer at a company if they had access to fertility benefits [Source].
Offering inclusive family-building benefits through solutions like Carrot Fertility sends a clear message: your company cares about every stage of your employees’ lives.
This not only attracts talent (especially those who are planning families) but also fosters loyalty among current team members who feel seen and supported in their personal goals.
Many HR and business leaders are now rethinking their health benefits for small businesses, exploring ways to improve their small company benefits package without raising costs.
And here’s the thing - you can make a real difference.
We’ve seen firsthand how much it means when employees feel truly supported.
Taking the time to craft a caring, competitive benefits package pays off not just in retention stats, but in a healthier, happier workforce.
In the end, when you show employees that you genuinely care, they’ll repay you with loyalty, productivity, and passion for the work – and that’s a win-win for everyone.
