After better pay, job seekers in the U.S. want a better benefits package, particularly traditional offerings such as health insurance and paid time off, according to a Dec. 4 report from the Indeed Hiring Lab.
Nearly half of those surveyed selected “better benefits” as an attribute they desire in a new job, which was the second most-common driver after higher pay, the report found.
“Employer-sponsored benefits don’t often get the same coverage in labor market discussions as wages, but they loom large,” Brendon Bernard, an economist at the Indeed Hiring Lab, wrote in the report.
For instance, employer benefits accounted for 24% of total compensation for U.S. employees in July 2025, according to U.S. Bureau of Labor Statistics data. Health insurance and paid leave remain the two most prominent benefits, followed by supplemental pay and retirement benefits.
“One reason for this elevated share is that many job seekers place substantial importance on receiving employer-sponsored benefits when undertaking their job searches,” Bernard wrote.
In the Indeed report, the most popular benefits included health insurance (63%), paid vacation days (63%) and paid sick days (59%). Schedule flexibility (47%), retirement benefits (45%), remote work (39%), performance incentive programs (37%) and holiday closures (33%) also ranked highly.
While health insurance and paid time off were prominent across generations, interest in specific benefits varied by age. Those between ages 45 and 64 were primarily focused on the most popular benefits, while those under age 35 were less focused on retirement and more interested in education, child care assistance, parental leave and free or discounted food at the workplace.
Among active job seekers, health insurance and paid time off were the most popular and prized benefits, especially among those over age 45. Other benefits varied based on age and gender, which employers can consider when attracting specific groups of candidates, the report found.
“While they’re a significant expense for employers, they’re often a necessary cost of doing business,” Bernard wrote. “And for employers already offering these features, ensuring job seekers are aware of their benefits package can offer an edge in recruiting.”
Health insurance benefits remain vital amid a healthcare “affordability crunch,” according to a Mercer report. To make healthcare more affordable, employers can provide more medical plan options, encourage employees to choose high-performing providers and offer specialized health programs, the report found.
Offering more modern benefits can also help employees, according to a Prudential survey, which found a gap between employer and employee beliefs about benefit offerings. Workers said their top challenges include saving for retirement, the cost of everyday goods, the cost of housing and making it paycheck to paycheck. Employees want benefits that go “beyond traditional coverage and more completely address how they live and work,” Prudential’s president said.
