Better Pay Leads Job Seeker Priorities, But Benefits Remain a Close Second

A recent report from the Indeed Hiring Lab highlights that while better pay ranks as the top priority for U.S. job seekers, better benefits remain a close second, with traditional offerings such as health insurance and paid time off highly valued.

Nearly half of surveyed job seekers emphasized the importance of employer-sponsored benefits, underscoring their significant role in compensation packages, which accounted for 24% of total compensation as of mid-2025 according to the U.S. Bureau of Labor Statistics. Health insurance, paid vacation, and paid sick days are the leading benefits job seekers desire, with generational differences influencing preferences; older workers prioritize traditional benefits such as retirement plans, while younger employees show interest in education assistance, child care, and parental leave.

Employers face considerable costs in providing these benefits but can gain recruiting advantages by promoting them effectively. Amidst healthcare affordability challenges, employers are encouraged to diversify medical plan options and promote high-performing providers to enhance benefit value. Furthermore, evolving employee needs call for expanded benefit offerings that address financial wellness and life-work balance beyond conventional health coverage.

This analysis sheds light on current labor market dynamics and the strategic importance of comprehensive benefits in talent acquisition and retention within the U.S. insurance and human resources sectors.