Salary remains the most powerful driver in retention and job acceptance. It directly impacts an employee’s purchasing power—covering everyday essentials like housing, food, transportation, and savings. A strong paycheck allows employees to meet their financial responsibilities with less stress and greater stability.
However, this doesn’t mean employees don’t value other benefits and perks in the office. In this blog, we’ll talk about the overlooked perks that actually improve employee retention.
Why Are Perks Great for Increasing Employee Retention?
Simple: They’re effective and relatively low-cost.
Competitive salaries and benefits are often the first strategies employers turn to when aiming to improve retention. However, these come with financial constraints—even large organizations may struggle to sustain them over time.
Benefits, by contrast, are generally more cost-effective and easier to implement. Some require little to no additional funding, yet they’re often underutilized across industries. While they may not carry the same weight as salary, the right perks can significantly enhance the employee experience and encourage long-term commitment.
Consider the following scenarios:
High salary in a chaotic work environment.
An employee earns a strong paycheck but works in a disorganized, high-pressure environment. Colleagues are overworked, communication is strained, and internal conflict is common. Leadership focuses solely on metrics—revenue, output, cost—while support and development take a back seat.
Though this may sound like an extreme case, many professionals encounter elements of this in real workplace settings.
Average pay in a supportive, well-structured workplace.
Now, consider a team environment built on collaboration, trust, and support. While the compensation may be average, the workplace culture fosters well-being and encourages employees to grow. When challenges arise, there is consistent support from both leadership and peers. The benefits may not be extensive, but there is a clear opportunity for career development and long-term success.
That sounds like a much better scenario!
Case Study: How a Group of Companies Increased ROI by up to 425% with Benefits
Focusing on perks and benefits is how five companies boosted their ROI by a whopping 425%.¹ In a joint study between Moms First and Boston Consulting Group, the companies increased their ROI by offering childcare benefits like daycare, stipends, or backup care. They also shared these statistics:
- 86% of employed parents were more likely to stay, reducing employee turnover.
- 78% reported positive career outcomes.
- Eligible employees avoided up to 16 absences per year.
- Overall employee satisfaction improved.
These benefits not only addressed cost and access barriers but also demonstrated an employer’s willingness to support employees through personal and professional challenges. Importantly, the companies only needed to retain 1% of eligible employees—parents—to fully offset the cost of offering these benefits.
When organizations invest in their people, employees tend to stay—and often deliver more than expected.
6 Most Overlooked Perks That Actually Improve Employee Retention
Company perks shouldn’t replace competitive salaries and benefits. However, if you’re not including these in your overall compensation, you’ll be missing out on boosting employee satisfaction.
Here are the most overlooked perks to consider for your company:
1. Career pathing and professional development opportunities.
Many employees look for growth—not just in terms of promotions, but also through lateral moves that expand their skills and responsibilities. So, consider horizontal training, mentorship, cross-training, and access to tech stacks to improve employee morale and engagement.
In technical fields like engineering, analytics, or IT, this can be seen as a benefit. While employees tend to stay in their comfort zone or have specific expertise, some may be open to exploring new opportunities. Not only does this broaden their skills, but it also makes them more viable for management positions since they understand many aspects of the business.
Offering career development shows that you’re investing in your people long-term. It sends the message that you’re a supportive employer, giving them more reason to stay in the company.
2. Financial wellness programs.
According to the Association for Financial Counseling and Planning Education, financial stress is directly linked to absenteeism, as employees dealing with money concerns are more likely to take unplanned time off.²
Employers can offer financial education and support without significant cost. Options include:
- Partnering with certified financial planners or nonprofits to host budgeting and debt management workshops
- Offering student loan assistance or refinancing guidance
- Providing access to financial counseling and coaching
These small steps can improve employee stability and satisfaction.
3. Mental and emotional well-being support.
Mental wellness is an important benefit in the organization. Go beyond traditional assistance programs by making wellness part of the company culture.
Work can be challenging, from performing daily responsibilities and meeting client expectations to balancing personal life and staying mentally and physically well. As an employer, you can support employee well-being by:
- Encouraging breaks and vacations for work-life balance.
- Evaluating workload to avoid overloading employees.
- Fostering an open and supportive environment.
- Offering counseling services or mental health reimbursements.
4. Recognition beyond performance reviews.
Managers usually wait six months to review their teams. Unfortunately, this not only prolongs any issue, it may also overlook some achievements. Employee recognition should be a consistent, high-impact strategy that improves morale and engagement.
When managers acknowledge wins – big or small – on a regular basis, it creates a culture of appreciation and ownership. Small, consistent gestures can do more to boost morale than once-a-year praise.
Consider using email, company newsletters, or even your inboxes to recognize employees. Even simple gestures like visiting employees at their desks or remarking on their achievements during morning meetings can already boost employee engagement and morale.
5. Purpose-driven work.
Nobody wants to work nonstop with no meaning, especially engineers, accountants, IT, or analysts. The challenge of solving problems every day should point to a fulfilling goal. Ask yourself:
- Why does my team perform?
- What is our end-goal?
- Who do we want to satisfy and impress?
These goals should align with company objectives, but they must also reflect what matters to employees – their growth, impact, and sense of purpose. Help employees find meaning in their work by reinforcing a shared mission, whether through social impact, sustainability goals, or transparent company vision.
Work shouldn’t be just about completing tasks, making money, or beating a competitor. It should reflect how their efforts contribute to the success of the entire business.
6. Lifestyle support and micro-perks.
Think travel reimbursement, pet insurance, gym membership, or free lunches. These small gestures reduce friction in employees’ lives. In turn, they become more satisfied with their work and loyal to the company.
Don’t dismiss lifestyle perks as nice-to-haves. While small, they can ease everyday stressors and add up to a more positive work experience. These micro-perks don’t have to be expensive to be effective—they just need to show employees that their well-being matters.
BUILD A WORKPLACE WHERE PEOPLE WANT TO STAY.
At ACS Professional Staffing, we don’t just match companies with qualified professionals—we help you retain them. Whether you need help for retention, customer experience, or building a talent pipeline, we’re here to support your goals.
Our expertise goes beyond placing candidates. We understand what companies and employees need, allowing us to create the perfect match.
Let us help you find talent that fits your company culture and stays for the long haul. Contact us today.
References
- “Childcare Benefits More Than Pay for Themselves.” Boston Consulting Group, 26 Mar. 2024, https://www.bcg.com/press/26march2024-childcare-benefits-pay-for-themselves
- “Financial Stress and Absenteeism: An Empirically Derived Model.” Association for Financial Counseling and Planning Education, https://www.afcpe.org/wp-content/uploads/2018/10/vol1413.pdf. 30 Jul. 2025.
