Empathetic healthcare benefits go beyond the standard core package of medical, dental, vision, and retirement. Truly empathic, modern support targets individual needs on a deeper level, such as day care benefits, caregiver support tools, telemedicine, accident insurance, and so much more. But why should you care about having empathic benefits at your organization?
A recent study from Prudential found that while 86% of employers think their benefits are modern, only 59% of their employees agree. And that data makes sense since traditional benefits often miss the mark because they’re designed to fit the packaged needs of a generalized population rather than each employee’s individual needs.
But how can HR meet the emotional, physical, and financial needs of thousands of people without blowing your organization’s budget? It starts with data and employee feedback.
Let’s break down some of the ways you can tailor benefits at your organization in a way that balances costs and resonates with the evolving needs of a modern workforce.
Employees often feel unheard by their organization when it comes to their needs. Empathy starts with active listening. A few great ways you can listen to your employees include:
Oftentimes, benefit gaps arise from not being able to meet the needs of people who are simply at different stages of life—which means different types of emotional, physical, and financial needs. With the feedback and info you’ve gathered from employees, try to create employee personas based on demographics, roles, and life stages (e.g., new parents, caregivers, early-career professionals). Identify pain points and gaps in your current benefits offerings for each persona.
For instance, a Gen Z employee may value student loan repayment assistance, while a new parent might prioritize flexible work hours or caregiving voluntary benefits. It’s not about putting your employees into boxes, but listening to their needs and looking for ways to empathetically visualize what employees think and feel in their day-to-day lives—and how certain benefits can support their experience.
One of the biggest barriers to benefits is cost. Empathetic benefits are important to employees but they also should align with organizational goals. But here’s the thing: when empathy is in place for employees, the output actually results in better retention and productivity. It’s something that may seem so simple, but in reality many organizations struggle to see and execute.
Let’s start by looking at the numbers from the 2025 State of the Workplace Empathy Report. By failing to demonstrate and cultivate an empathetic workplace:
But how can we circumvent these attrition costs when it still feels like rising healthcare costs are suffocating to organizations’ bottom line?
For example, you may want to invest in childcare subsidies over free gym memberships if your employee’s feedback and data show that you have a higher percentage of working parents who are struggling.
Employee needs aren’t static. And if there’s only one thing you take away from this, it’s that employees are learning more about what they want, and they may not wait around long to get it. I’m sure you can think of one thing an employee has said they needed in their benefits. Use that as a starting point to open up empathetic conversations about how different benefits could meet that employee’s needs. Or who knows? Maybe you already have benefits in place for certain needs that your employees aren’t even aware of.
Analyze your workforce demographics. We know that employees want to receive personalized messages, so create those connections with empathy by communicating ALL your benefit offerings.
For leaders and organizations, the challenge ahead lies in transitioning empathy from a reactive, performative “nice-to-have” into a proactive, intentional, and sustainable organizational strategy.
And thankfully, the majority of U.S. organizations (63%) are evolving with the needs of working households—a 180-degree change from our inaugural report in 2016 when 60% of employees said employers were not evolving with the needs of working households.
Don’t get left behind by clinging to the status quo. Employees are shifting away from traditional benefits, seeking flexible, empathetic options—and if you’re not adapting, they might find those options with your competitors.
Your benefits administration partner is crucial in bridging the gap between your organization’s benefits and your employees’ understanding and appreciation of them.
