Your benefits package is a retention tool. Are you treating it like one?

In today’s labor market, retaining top talent is a financial priority as much as a people priority. According to Gallup, replacing an employee can cost twice the person’s annual salary. Compounding that impact is the fact that more than 1 in 3 employees have left or considered leaving their job in the past year—up 5 points from 2025.

So what’s keeping employees in their seats? Competitive workplace benefits rank among the top three reasons employees choose to stay with their current company, according to Bank of America’s 2026 Workplace Benefits Report.

HR leaders who build flexible workplace benefits packages can better position their companies to attract and retain top talent. But what do those packages include, and how can leaders ensure their employees actually leverage them? We partnered with Bank of America, one of the top leaders in the space, to find out.

A focus on personal finance

Employees are looking for benefits that support their whole lives, including health plans, caregiving benefits, wellness reimbursements, and menopause support. But they’re also focused on their long-term financial security, and they’re increasingly looking to their employers for support. Bank of America found that saving for retirement is a top financial goal for 70% of employees, followed by growing their emergency savings, which is a priority for 44%.

These savings goals have led to notable progress: 73% of employees feel confident that their retirement savings are on track, up 6 points from last year. Gen Z is starting to save for retirement a full decade earlier than Boomers did, at age 24 vs. 34 for Boomers. And more employees are hitting their emergency savings benchmarks. These trends indicate that workers are making real progress on both long- and short-term financial priorities.

At the same time, financial stress still lingers. Three-quarters of employees feel stressed about the overall economy, and cost of living remains the top challenge to their sense of financial security. That tension between progress and pressure is where employers can step in.

Employers who proactively address employee financial well-being can expect positive, measurable outcomes. Nine in 10 employers that offer financial wellness programs report more satisfied, productive, and engaged employees, as well as greater talent retention rates.

Employee benefits education

While many companies strive to provide benefits that help address employees’ financial priorities, a meaningful gap in employee understanding persists.

This shows up most clearly in more complex benefits like HSAs and stock options. One in 4 employees aren’t investing their HSA balance simply because they didn’t know it was an option. And only 6 in 10 employees who receive stock awards feel equipped to make informed decisions about them.

“Company leaders can have a real impact on how their employees understand and use their benefits,” says Stacy Bucchere, managing director of Workplace Benefits at Bank of America. “As benefits evolve beyond traditional offerings like 401(k)s and health plans, employees are increasingly looking to employers for more information and support.”

Those numbers don’t just reflect an education gap—there’s also a perception gap between how employers and workers view employee financial wellness. While 71% of employers believe their workforce feels financially well, only 55% of employees agree. That gap represents a clear opportunity for HR leaders to gain a better understanding of what employees need, build benefits that deliver on it, and communicate what’s available.

Communication is key

As a starting point, HR leaders can focus on identifying the most common needs across their workforce. Insights from surveys, employee resource groups, interviews, and benefits usage data can help inform your company’s overall benefits strategy. From there, you can pinpoint areas of need, like emergency savings, debt management, or caregiving support.

“One of the most common disconnects we see is employers offering benefits they believe are valuable but that employees simply aren’t using,” Bucchere said. “Providing the right benefits for your employees is as crucial as offering them in the first place.”

Once your workforce needs are identified and your updated benefits are selected, it’s time to get the word out. Ideally, this communication is consistent all year long, but a peak time to engage is during open enrollment. This period is a natural touchpoint, given that many employees are already revisiting their benefits elections and researching what’s available to them. Increasing communications about new benefits or financial wellness resources when employees are engaged could have a meaningful impact.

It’s a win-win for employers who respond with robust benefits offerings and clear communication. They support their employees’ financial health and build toward the kind of benefits program that’s hard to walk away from. And the fewer employees leaving, the more the company saves on turnover costs.

Enrollment season is an opportune time to help employees evaluate and take action on their financial well-being. But communication and engagement shouldn’t stop here. Rather, HR leaders can think of open enrollment as one entry point in a year-round communication strategy. Frequent education and financial wellness resources can give HR leaders an advantage in today’s competition for talent. And if you’re looking for support on your communications plan or overall benefits strategy, the specialists at Bank of America Workplace Benefits are ready to talk.

+++

^{The views and opinions expressed are those of the speaker, are subject to change without notice at any time, and may differ from views expressed by Merrill or other divisions of Bank of America. These materials are provided for informational purposes only and should not be used or construed as a recommendation of any service, security, or sector.}

^{Bank of America, its affiliates, and financial advisors do not provide legal, tax, or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions.}

^{Investing involves risk, including the possible loss of principal.}

^{Workplace Benefits is the institutional retirement and benefits business of Bank of America Corporation (“BofA Corp.”) operating under the name “Bank of America.” Investment advisory and brokerage services are provided by wholly owned non-bank affiliates of BofA Corp., including Merrill Lynch, Pierce, Fenner & Smith Incorporated (also referred to as “MLPF&S” or “Merrill”), a dually registered broker-dealer and investment adviser and Member SIPC. Banking activities may be performed by wholly owned banking affiliates of BofA Corp., including Bank of America, N.A., Member FDIC.}

^{© 2026 Bank of America Corporation. All rights reserved. MAP# 9110213}

+++