As workplace benefits continue to evolve, employers face challenges such as rising costs, especially in healthcare, and how to address existing gaps in employee perceptions and the reality of employees’ needs. A new study released by Aflac reveals that benefits are becoming increasingly critical to employee retention and organizations will need to better address and communicate employees’ needs to maintain a strong workforce.

According to the study, over the past year nearly two-thirds of employers saw an increase in benefits costs, driven primarily by rising prescription drug prices and increased mental health claims. These increased costs have affected organization's ability to invest in their employees in other ways such as offering bonuses (40%), offering higher quality coverage (38%), offering a more diverse range of benefits (35%), and offering raises (32%).