According to Gallup, only one-third of U.S. employees were engaged in 2023. The problem with disengagement is that once it creeps in, reversing course can be incredibly difficult. That’s why you need to be proactive about cultivating strong relationships with your team members and ensuring they care about the work they do.
While giving your team meaningful work is an important part of this equation, you’ll also need to leverage employee benefits and compensation to boost engagement. Here’s a closer look at three key strategies to make the most of your employee compensation and perks in 2025.
Ask Your Employees What Matters to Them
Employee benefits are a significant part of employee compensation, but it’s important to confirm that you’re investing in the benefits your team actually wants. When was the last time you asked your employees what matters to them?
One of the best ways to figure out what workers want is to simply ask. You can pose this question during one-on-one check-ins, department-wide meetings, or via anonymous surveys.
When employees see that their input shapes the perks they receive, they’re more likely to feel valued and engaged. For example, if your workforce is interested in student loan repayment assistance or enhanced mental health resources, aligning your offerings with these priorities shows that you’re listening.
It’s also helpful to look at the other side of the coin. You can offer dozens of perks, but if few of them are things your workers actually use, you are just throwing the company’s money down the drain.
Naturally, you won’t be able to incorporate every suggestion you receive, and that’s okay. Be honest about things that are unrealistic from a budgetary or logistics perspective. Simply acknowledging that you’ve received a request and are evaluating whether it’s viable or not shows you care about creating better experiences.
Educate Team Members on How to Maximize Their Benefits
There’s no need to educate your workforce on the pay component of employee compensation. Generally speaking, everybody understands how they get paid, what they make, and how their hourly or salary compensation will change over time.
However, your employees may not know about all of the different perks you offer, especially if your company provides some non-traditional options. Even the best benefits package won’t drive engagement if employees don’t know how to use it.
Investing in benefits education ensures your team understands what’s available to them and how it enhances their lives. Periodically remind employees of any benefits that appear to be going unused. Some lesser-known perks like gym or office supply stipends tend to fly under the radar.
Make sure you go over employee compensation and benefits during onboarding. Use this time to help people sign up for any services they may need and ensure they know how to log into your self-service portal if you have one.
Any time your company modifies a benefit or adds new perks, spread the word via email. Then, you can monitor usage data to ensure your team got the message.
Be Pro-Wellness
Wellness benefits are a way to show your team members that their health and happiness are priorities. Make sure that your programs address both physical and mental well-being. If your employees feel good and are in a positive state of mind, they will be more engaged and productive.
Here are some tips to jumpstart your holistic wellness program:
- Implement programs like mindfulness workshops or mental health counseling
- Offer flexible work arrangements to promote work-life balance
- Provide incentives for participating in wellness programs, like insurance discounts or gift cards
Not every wellness initiative will be a good fit for your company. Evaluate what’s practical and focus on tactics that can deliver meaningful benefits for your employees. When creating wellness initiatives, the key is to offer perks that your team members will use while addressing both the mind and body.
Ready to Rethink Employee Compensation?
Benefits Advisory Group specializes in designing benefits solutions that align with your workforce’s needs and your organization’s goals. Contact Benefits Advisory Group to schedule a consultation. Our employee benefits brokerage can help you explore traditional and modern offerings that promote engagement, loyalty, and strong morale.