Dispelling common misconceptions businesses hold about employee benefits

Written in collaboration with The Business Journals.

 

What makes an employee stay at a company, and just as importantly, what drives them to leave? For a growing number of workers, the answer comes down to benefits.

 

Nearly a quarter of workers say they have recently left or considered leaving a job because their benefits fell short, according to the Bank of America 2025 Workplace Benefits Report — up from 15% just three years earlier.

 

Many businesses, however, are still working from outdated assumptions about what benefits are, what they cost and how much they influence employee decisions.

 

In a recent interview, Stacy Bucchere, Managing Director of Workplace Benefits at Bank of America, drew on the latest research and her own experiences with clients to address the misconceptions that often lead employers to overlook what today’s employees value most.

 

 

Workplace benefits have long been treated as a cost to control rather than a driver of business performance, but that view is changing.

 

“Workplace benefits are a critical part of the package you offer employees in exchange for their efforts, nearly as important as total compensation or location,” Bucchere said.

 

Benefits influence decisions at every stage of employment. Candidates comparing offers often favor positions with stronger retirement plans or more comprehensive health coverage. Current employees may weigh access to financial guidance or personal support when deciding whether to stay.

 

Over time, those choices can show up in turnover rates and day-to-day performance. Replacing an employee requires recruiting, interviewing and onboarding, while existing staff shoulder additional work. When benefits fall short, these disruptions can become more frequent.

 

Employers who align benefits with employees’ needs can reduce turnover and keep operations running smoothly. That starts with understanding the financial pressures employees face outside of work.

 

Bank of America research shows that 85% of employees have some form of personal debt, often while juggling competing financial priorities.¹ For example, 45% of employees say they have not saved enough for emergencies because they are prioritizing repaying debt.¹

 

Those stressors follow employees to work, affecting productivity, concentration and decisions about staying with the company. More employers are responding with financial wellness programs that offer tools for budgeting, debt management and retirement planning. The results speak for themselves: eight in 10 employers say financial wellness resources improve job satisfaction, retention, productivity and talent attraction.²

 

“Workplace benefits are a competitive advantage in today’s market that can directly benefit your bottom line,” Bucchere said. “They are a differentiator – and they communicate to prospective talent that you are investing in your employees.”

 

By leveraging tax-efficient benefits, offsetting costs and pooling plans, businesses of any size can explore benefits offerings that work for them.

 

 

As expectations rise, some business owners still hesitate to expand benefits, often due to cost, complexity or the belief they are too small to offer them.

 

“In speaking with smaller business owners, I often hear the misconception that benefits are only an option for big companies,” Bucchere said. “However, companies of all sizes can offer smart benefits that fit their employees’ needs.”

 

Many business owners assume that the costs associated with offering workplace benefits may be unaffordable – while others cite the perceived administrative burden of managing benefits as too time-consuming.

 

However, in many cases, the barriers for business owners are lower than expected and valuable tax credits can help offset startup costs of retirement plans, potentially saving a business thousands of dollars.

 

Employers now have many options, including 401(k)s that can be designed for companies with just a few employees or thousands, SIMPLE IRAs and pooled employer plans (PEPs) — giving employers more flexibility to find the right plan for their needs. By leveraging tax-efficient benefits, offsetting costs and pooling plans, businesses of any size can explore benefits offerings that work for them.

 

“Today, business owners have more choices than ever,” Bucchere said. “They can also work directly with a benefits provider who can help take the guesswork and complexity out of plan set up and management.”

 

 

Access alone is not enough. Even strong benefits can go unused if employees do not understand what is available or how to navigate their options.

 

“Employers should evaluate the effectiveness of their benefits regularly, at least once a year, and communicate about them throughout the year to ensure employees know what’s available to them,” Bucchere said.

 

Bank of America research shows employees today are looking for more guidance, particularly around retirement planning, emergency savings and everyday financial decisions.¹

 

“The first step is to meet your employees where they are,” Bucchere said. “Start by gathering information and data about what benefits your employees want most. Every workplace will be different.”

 

Bank of America Workplace Benefits offers a suite of retirement, health and financial wellness solutions for businesses, along with guidance to help them design and manage programs as their workforce evolves. With these tools, businesses can better understand what their employees need and adjust their offerings to match.

 

The question is no longer whether benefits matter, but whether they address real workforce needs, are actively used by employees and deliver measurable value for both workers and the business.

 

With Bank of America Workplace Benefits®, your employees have access to the benefits and solutions they need — no matter where they are in their financial journey. Learn more about how to elevate your benefits program.

 

Written in partnership with The Business Journals, by Sydney Wiederhold, Writer, TBJ Content Studio.

 

The views and opinions expressed are those of the writer, 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.