By Katie Merritt, senior research and data manager, Robert Half
Today’s job seekers aren’t just comparing salaries when considering a new role. They’re evaluating the full value a potential employer can offer.
Competitive pay remains essential, but it's only one part of the equation. Together, compensation, bonuses, benefits, flexibility, career development opportunities and well-being programs make up an organization's total rewards package. Job seekers consider the entire employment experience, weighing bonuses, benefits, flexibility, career development and well-being. Together, these factors shape the opportunities they pursue and the organizations they choose to join.
The 2027 Salary Guide From Robert Half shows employers are adapting to changing expectations. More than half (53%) plan to expand their benefits offerings in the coming year, even as they balance rising health and wellness costs. Those decisions come at a critical time. Nearly half of employed professionals (47%) say better benefits and perks are among the top reasons they would look for a new job, making compensation, benefits and workplace perks an important factor in attracting and retaining talent.
Employee perks and benefits: Your guide for 2027
Small and midsize businesses can compete for talent without matching enterprise budgets. While larger organizations may offer broader programs, smaller employers can often differentiate themselves by focusing on the rewards candidates value most.
Work-life balance and remote-work benefits are the top motivators for professionals considering a move when salary remains unchanged, cited by 64% of workers. At the same time, 71% of professionals working in SMBs say work-life balance and remote-work benefits could motivate them to change employers. Flexible schedules, hybrid work options, career growth opportunities and a more personalized employee experience can help smaller employers stand out without significantly increasing compensation costs.
Organizations that align their rewards strategies with job seekers’ priorities will be better positioned to attract skilled talent, improve retention and support long-term business goals.
The mix of benefits and perks employers offer varies by company size, but flexibility, performance incentives and retirement benefits remain common priorities across organizations.
Benefits and perks employers offer by company size
Small companies
Employer contributions to retirement plans: 41%
Flexible work schedules: 46%
Hybrid work options: 27%
Performance-based bonuses: 49%
Mental health coverage: 29%
Midsize companies
Employer contributions to retirement plans: 34%
Flexible work schedules: 48%
Hybrid work options: 46%
Performance-based bonuses: 43%
Mental health coverage: 42%
Large companies
Employer contributions to retirement plans: 43%
Flexible work schedules: 54%
Hybrid work options: 53%
Performance-based bonuses: 49%
Mental health coverage: 52%
Source: Robert Half survey of more than 450 HR managers from small (10-99 employees), midsize (100-999 employees) and large (1,000-plus employees) companies across the United States.
How job seekers evaluate offers beyond salary
How do job seekers choose between job offers with similar pay?
Our research offers a clear answer. When salary is comparable, nearly two-thirds (64%) say work-life balance and flexibility could motivate them to change employers. Financial incentives (63%), retirement planning (51%) and health and wellness benefits (50%) also rank among the strongest influences on career decisions.
Competitive pay has become the starting point rather than the finish line. Once salary expectations are met, professionals begin comparing everything else an employer offers.
Financial incentives extend beyond annual bonuses. Depending on the organization, they may include annual raises, cost-of-living adjustments, profit sharing, stock-based compensation or other rewards that recognize employee contributions. For employers with limited flexibility to increase base pay, these incentives can strengthen an offer while improving attraction and retention.
Some of the strongest opportunities come from offering rewards employees value highly but don't consistently receive. For example, nearly 67% of workers say flexible work schedules are important, yet only about 50% of employers currently offer them. That gap highlights how employers can strengthen their total rewards strategy by focusing on benefits that matter most to employees. Flexible scheduling, in particular, can be a powerful differentiator because it typically requires little direct financial investment while delivering meaningful value to workers.
Employees don't evaluate these rewards individually. They consider how they work together to support their careers, finances and long-term goals.
A stronger perks and benefits strategy isn't about adding more rewards. It's about making smarter investments in the ones employees value most. The biggest opportunities often emerge where employee preferences and employer offerings don't fully align.
What employers offer vs. what workers value
The graphic compares the percentage of employers offering selected perks and benefits with the percentage of workers who value each offering:
Flexible work schedules: 50% of employers offer them; 67% of workers value them
Commuter benefits: 42% offered; 55% valued
Dental insurance: 49% offered; 61% valued
Employer retirement plan contributions, such as a 401(k) match: 38% offered; 50% valued
Remote-work reimbursements: 32% offered; 42% valued
Annual merit-based salary increases: 33% offered; 42% valued
Vision insurance: 46% offered; 54% valued
Free or subsidized meals: 44% offered; 51% valued
Employer contributions to pretax health programs, such as an HSA contribution or match: 28% offered; 34% valued
Hybrid work options: 46% offered; 51% valued
Flexible work schedules show the largest visible difference, with 67% of workers valuing them compared with 50% of employers offering them.
Source: Robert Half Employer Survey of 514 HR managers from small (10-99 employees), midsize (100-999 employees) and large (1,000-plus employees) companies across the United States, and Robert Half Worker Survey of 2,001 employed U.S. adults.
Why compensation philosophy matters
Hire talent
Understanding what employees value is only the first step. Employers must also decide how to reflect those priorities in their rewards strategy.
Every organization has a compensation philosophy, whether it's formally documented or reflected in everyday decisions. It shapes pay increases, bonuses, promotions and long-term incentives while helping define the value of the organization's total rewards package. It also helps guide decisions about employee benefits, financial incentives and career development.
A compensation philosophy isn't just about how much employees are paid. It's about what an organization chooses to reward. Some employers prioritize retention, while others focus on performance, skills or advancement. The most effective compensation philosophies align with organizational goals and provide a consistent framework for pay, bonuses and financial incentives.
Bonus strategies bring compensation philosophies to life. Among large organizations, 57% determine bonuses using a combination of employee and company performance, compared with 50% of midsize employers and 47% of small businesses. As employee headcount increases, many organizations place greater emphasis on balancing individual achievement with broader business performance. The right approach depends on company size, workforce demographics and business priorities. A strategy that works well for a growing small business may differ from one designed for a large enterprise with a more complex workforce.
Employees experience a company’s compensation philosophy every day. They notice how rewards are earned, what behaviors are recognized and whether the process feels fair. When compensation decisions are transparent, employees are more likely to trust that contributions will be recognized and rewarded.
Build a total rewards strategy that helps attract and retain talent
Competitive compensation is only part of the equation. Learn how Robert Half can help you hire skilled talent in a competitive market.
How to strengthen your total rewards strategy
The biggest opportunities aren't always the most expensive ones.
It's easy to assume building a stronger total rewards strategy means adding more benefits. The research suggests otherwise. Some of the greatest opportunities come from better aligning what employers offer with what employees value most.
One example is flexibility. Flexible work schedules are valued by nearly 67% of workers, yet only about 50% of employers currently offer them. Because they typically require little direct financial investment, flexible scheduling can be one of the most cost-effective ways for employers to improve their total rewards strategy and strengthen recruiting efforts.
Some rewards have become standard expectations, while others help employers stand out in a competitive hiring market. Knowing the difference can help organizations make smarter investment decisions.
Employers that focus on the rewards employees value most often gain more than those that simply add offerings. Even a few targeted improvements can strengthen recruiting, improve retention and enhance their total rewards strategy.
Sometimes the perks and benefits that matter most aren't the most expensive.
How personalized perks and benefits are reshaping total rewards
One-size-fits-all benefits packages are giving way to more personalized support. Health insurance and retirement plans remain the foundation of most total rewards strategies, but many employers are expanding their offerings with targeted health, wellness and family benefits that reflect the diverse needs of today's workforce.
Often referred to as point solutions, these programs are designed to address specific workforce needs. Rather than offering the same benefits to everyone, employers are investing in targeted support for areas such as diabetes management, fertility care and mental health, helping employees through different stages of life and career.
The most effective total rewards strategies aren't built by offering every new benefit available. They're built by understanding the workforce those benefits are meant to support. A program that's invaluable to one group of employees may have little impact on another. Understanding employee needs is often more valuable than expanding the list of available benefits.
How to build a total rewards strategy
Every total rewards decision involves tradeoffs. Benefits budgets compete with investments in technology, growth and other business priorities. Success isn't about offering the largest rewards package. It's about making strategic choices that align workforce needs with business goals.
That starts with understanding your workforce. Which rewards help attract in-demand talent? Which encourage employees to stay? Which reinforce your company culture and support long-term success?
The most effective perks and benefits evolve alongside changing employee expectations, business priorities and workforce needs. They aren't built by checking every box or matching every competitor. They're built through intentional investments that deliver the greatest value and impact.
Competitive pay will always matter. So will flexibility, financial incentives, employee benefits, career development and well-being. Organizations that bring these elements together create workplaces where people can thrive, contribute and build long-term careers.
Benchmark compensation and rewards trends
View the 2027 Salary Guide
Use the 2027 Salary Guide to explore salary data and hiring insights that can help inform compensation and total rewards decisions.
