In many ways, employee expectations have shifted more in the past five years than in the previous five decades. Between remote work brought on by COVID and an increasing desire for more work-life balance, ancillary benefits now play a bigger role in how people choose where to work and whether they stay. Healthcare and retirement still matter, but employees now look at benefits as a signal of how much their employer truly cares about their lives, not just their labor. The way a company supports wellbeing, flexibility, and growth says a lot about its values.
At LBMC Employment Partners, we see this every day. Benefits do not create loyalty on their own, but they do shape how people experience work and how much they want to stay. When employees feel supported, they think twice before leaving a workplace that meets their needs.
Benefits Employees Are Looking for in 2026
Here are some of the ancillary benefits that we’re incorporating with our clients and PEO partners this year:
Hybrid and flexible work
Flexibility has become a baseline expectation for many employees. Gallup reports that 53% of U.S. employees with remote-capable jobs now prefer a hybrid work model, while another 27% prefer to work fully remote.
At LBMC EP, we see flexibility drive both recruitment and retention. Employees value the ability to manage school schedules, caregiving, and life responsibilities without sacrificing performance. Employers who support hybrid work send a clear message that they trust their teams and respect how work fits into real life.
Wellness benefits
Wellness has expanded far beyond medical coverage. According to a 2024 survey by the International Foundation of Employee Benefit Plans, more than 80% of employers now offer some form of wellness benefits, including gym reimbursements, mental health resources, or financial wellness programs.
We’ve seen that it can make a tangible difference when companies offer contributions for gym memberships, mental health support, or wellness apps. Prioritizing these benefits shows employees that you care about their long-term health, not only their productivity.
Work-life balance
Work-life balance shows up in small, everyday moments. It includes flexible start times, the ability to step away for a quick family or personal obligation, and policies that give people room to manage their lives. SHRM reports that flexibility is now one of the top drivers of job satisfaction across generations.
At LBMC EP, we often help clients update and modernize their employee handbook to accommodate planned late arrivals, early departures, or short midday breaks without creating stress. Small policy changes build trust and keep people engaged.
Mentorship and career development
Workforce development benefits aren’t always highlighted, but they can have a huge impact on employee retention. Mentorships and career growth initiatives can provide employees with a clear path to professional success. A recent LinkedIn Workplace Learning Report found that 94% of employees would stay longer at a company that invests in their development.
At LBMC EP, we see how mentorship programs connect new and experienced employees. They create pride and help people see how their work matters. Whether someone just joined or has been with a company for years, these programs build a sense of purpose.
Turn Benefits Into Engagement with Communication and Integration
Offering benefits is only part of the equation. Employees also need to understand and use them. Here are some keys when it comes to communicating about benefits and integrating them into the everyday work environment:
Effective meetings matter.
Open enrollment should go beyond a list of options. Employees need education on terminology, deadlines, and what has changed. When people understand their choices, they make better decisions and feel more confident.
Recognition should feel tangible.
Employee recognition and appreciation is another critical component to the benefits conversation. Words of thanks matter, but they go further when paired with bonuses, time off, or added flexibility. People feel valued when appreciation is connected to tangible rewards.
Engagement platforms help keep benefits visible.
Tools like Nectar allow employees to recognize one another and exchange points for gift cards or company perks. These systems keep benefits top of mind and help reinforce a culture of appreciation.
The Power of the Right Partner: How the LBMC EP PEO Model Helps
LBMC Employment Partners helps businesses make the most of their benefits packages. Our PEO model gives you the tools, guidance, and benefits your people value most.
Access to leading benefits
As a PEO-first organization, LBMC EP gives clients access to premium health, retirement, and ancillary benefits that many small and mid-sized businesses cannot secure on their own. We also design benefit packages that include wellness, financial, and lifestyle perks. These packages help our nonprofit clients and growing startups compete for top talent without breaking their budgets.
Education that creates equity
We believe education is part of a strong benefits strategy. For example, one of our LBMC EP team members once led an open enrollment meeting for a client with an employee who had recently moved to the United States on a visa. She had never used the U.S. healthcare system. The info session we ran helped her understand how coverage works, what terms mean, and how to get care. Moments like that show why benefit education supports equity and trust in the workplace.
Centralized onboarding and hybrid support
Our UKG platform supports virtual onboarding, document management, and remote employee setup. We also help clients build hybrid work policies and stay HR compliant across states. For example, a marketing agency we support wanted to hire talent outside their home state. We helped them set up benefits, policies, and payroll so those employees could join the team smoothly and fairly.
Build a Benefits Strategy That Works
Employees in 2026 want more than a paycheck and a health plan. They want to feel supported, respected, and invested in. When companies offer benefits that match employee expectations, they build stronger teams and better retention.
If you want to build a workplace where employees want to stay, we are ready to help. Reach out to our team to learn more.
