Benefits packages are rising in cost at the same time that many of today’s businesses are facing other economic headwinds. For example, data from Mercer shows that employer healthcare costs are expected to rise 6.7% from 2025 to 2026.
Even so, employees value their benefits, and companies must offer competitive packages to attract and retain top talent. This means that employers need to find ways to innovate to ensure that they can balance rising costs with the need to distinguish themselves with robust benefits packages.
Unfortunately, this can be a challenge for employers who are used to taking the same approach to benefits year after year.
A little creativity can go a long way when it comes to offering the right benefits. If you’re looking to control your benefits costs while increasing employee satisfaction and engagement, here are the strategies that can help you achieve this goal.
Take a Data-Driven Approach to Employee Benefits Package Design
Employers who need to cut down on the costs of their benefits packages while remaining competitive for top talent will be well-served to employ strategies that prioritize the options today’s candidates and employees deem most important.
For example, recruiting firm Robert Half’s 2026 Salary Guide indicates that 53% of today’s employees would switch jobs if another company offered stronger financial incentives, such as bonuses and stock options.
The survey shows that workers also desire:
- Greater flexibility and work-life balance through paid time off and flexible work options
- Retirement benefits like 401(k)s and employer matching plans
- Health and wellness offerings like extended healthcare coverage, wellness stipends, and fitness memberships
In addition to understanding overall benefits trends, it’s also important to understand what your workforce wants in terms of employee compensation and benefits.
Survey your employees to find out which benefits they desire most. Additionally, consider using technology to analyze employee utilization trends so you can eliminate underperforming benefits and fund those high-impact options.
Use Technology to Customize Employee Benefits Selection
Many employers have gotten used to offering standardized, one-size-fits-all benefits packages. However, data support the idea that employees actually prefer packages that are more tailored to their needs.
In fact, surveys show that 65% of employees around the world would be willing to forgo some of their benefits if it meant having a better choice of benefits.
For most employers, this means using innovative, AI-driven technology to analyze individual employee data, such as health history, lifestyle, and financial goals. You can use this data to recommend tailored benefits packages that match the employee’s specific needs.
Many technology platforms also offer AI chatbots that provide personalized advice and answers to specific questions, along with timely alerts, reminders, and guides to help employees make the most of their benefits.
While this approach represents a notable pivot from traditional strategies, it can boost satisfaction and increase utilization while lowering benefits costs for employers.
Focus on Low-Cost, High-Impact Employee Benefits Opportunities
If you’re seeking to control the rising cost of employee compensation and benefits packages while maximizing engagement, your team must find high-impact options that don’t break the bank.
For example, if you know your employees value flexibility, you might consider implementing remote work options, compressed workweeks, or asynchronous work hours, all of which would enhance work-life balance at no cost to your organization.
Other options include:
- Comprehensive Wellness Programs: Virtual exercise classes, meditation rooms, or wellness challenges
- Voluntary Benefits: Insurance options like dental, vision, and pet plans that employees can opt into via a payroll deduction
- Professional Development: Free training and mentorship opportunities to help employees gain new skills and advance in their careers
- Local Discounts: Partnering with local businesses to provide exclusive discounts for members of your workforce
These options won’t burden your budget, but they can make employees feel more valued and increase candidate attraction to your organization.
A Creative Approach to Benefits Can Help Employers Win in 2026
In a business landscape where benefit costs are increasing every year, employers must find ways to protect their budgets without alienating employees or damaging the brand.
If you’re looking to balance your need to control costs with your wish to offer attractive employee compensation and benefits packages, the team at Benefits Advisory Group can help.
Contact us today to learn more about how our creative benefits packages can help you differentiate yourself in the market and attract and retain the very best talent.