Meeting the Benefit Needs of Dissatisfied Workers

MarketFacts Home

Author

Kimberly A. Landry
Research Director, Workplace Benefits Research
LIMRA and LOMA

October 2026

LIMRA research finds that 45% of employees are very satisfied with their overall workplace benefits packages in 2026, with three-quarters at least “somewhat” satisfied — a slight increase over last year. Although this trend is encouraging, it still leaves ample room for improvement, especially for the 15% of workers who are actively dissatisfied with their current benefit offerings.

These dissatisfied workers are worth a closer look since their lackluster experience with benefits can have significant consequences for employers’ retention goals. Among workers who are unhappy with their benefits, only one-quarter are satisfied with their jobs overall. Forty-six percent are actively looking for new positions, while 73% say their benefits make them less inclined to stay with their current employer.

Improving benefits can help companies avoid the time and expense associated with excess turnover. To do so, it is first necessary to understand who these dissatisfied workers are and what they want.

Which Employees Are Unhappy?

Dissatisfaction with benefits is more common among employees of small businesses, which tend to offer less robust benefits packages than their larger competitors. Surprisingly, small employers are often unaware of this shortcoming and tend to be confident that their workers are highly satisfied with their benefits — a disconnect that may hold them back from making necessary improvements.

Benefit satisfaction also varies by industry, with more discontent among workers in red-collar jobs, such as retail, food service and other customer-facing service jobs. These positions tend to be lower wage and require fewer qualifications, which may lead some employers to believe that a competitive benefits package is unnecessary. However, these businesses are still at risk of losing workers due to inadequate benefits, particularly in a tight labor market.

Dissatisfied workers are more apt to be in part-time positions within their organizations (roughly 3 in 10 work part time), giving them access to fewer benefits than their full-time colleagues. They also have lower incomes and are less likely to be in remote or hybrid work arrangements, which may further contribute to their discontent.

Demographically, workers who are unhappy with benefits tend to have lower levels of education. They are also more likely to be female (largely because women are overrepresented among part-time workers). Notably, only 31% of dissatisfied employees are married or in a civil union, which means the majority do not have access to more comprehensive benefits through a spouse’s employer.

Limited Offerings

It is no surprise that dissatisfied workers feel the way they do about their benefits, since this group is far less likely to be offered insurance benefits in the first place. Only 57% of dissatisfied employees have access to insurance benefits at work, compared with 97% of employees who are happy with their offerings.

These benefits programs, when they do exist, tend to be more limited in scope. Dissatisfied workers with benefits have a median of four insurance coverages available (versus eight for employees who are satisfied with their packages). Their typical insurance benefits program consists of medical, dental, vision and perhaps life insurance, while few have access to disability insurance, supplemental health coverages, or other types of financial protection. Among those enrolled in medical insurance, dissatisfied workers are more likely to have a high-deductible health plan, leaving them exposed to steeper out-of-pocket costs when they seek medical care.

Noninsurance benefits are also limited for this group. Paid time off is frequently available, but only 38% have access to a workplace retirement savings plan, while fewer than one-third are offered paid family or medical leave (PFML). Other noninsurance benefits such as wellness programs, mental health offerings or tuition assistance are rarely available.

Unmet Needs

When asked which benefits are most important to them, dissatisfied workers tend to cite the same answers as everyone else. Paid time off and medical insurance top the list, along with PFML, retirement savings plans and dental insurance.

However, the most prominent unmet needs of dissatisfied workers are somewhat distinct. Employees who aren’t happy with their current benefits are most inclined to want — but not already have access to — PFML, critical illness insurance, emergency savings benefits and retirement plans. Compared with more satisfied workers, retirement savings and PFML are much more pressing concerns for this group, indicating key opportunities for enhancement.

Closing the Gap

To close the gap in benefit satisfaction, carriers and brokers can start by targeting those jobs and industry segments where workers are least satisfied. The food service, retail, healthcare and entertainment industries have considerable room for improvement, along with small businesses of all types. Benefit providers might also suggest ways for companies to enhance benefits for part-time workers.

Employers in these fields sometimes have budgetary reasons for not offering comprehensive benefits, so benefits professionals might need to steer them toward more affordable options. Voluntary benefits, in particular, are an effective strategy for providing additional benefits to workers without raising employer costs. However, these must be designed and priced to be affordable to employees, especially when offered in low-wage industries. Similarly, retirement savings plans — a key unmet need for dissatisfied workers — can be offered without an employer match, if necessary, to fit them within a company’s budget.

Workplace benefits professionals can motivate employers to close this gap by helping them understand the long-term consequences of inadequate employee benefits. Beyond losing workers to competitors with better offerings, businesses may also see a negative impact on employees who stay. For example, poor financial wellness can be detrimental to workers’ focus and productivity. Employees who lack adequate health insurance often skip preventive care or fail to manage chronic conditions, leading to worsening health outcomes and absenteeism later on. Similarly, insufficient paid leave benefits can cause workers to forego seeking care when it is needed.

Although we may never achieve 100% satisfaction, there is ample space to improve benefits for the least contented employees. By suggesting creative solutions to enhance offerings, the workplace benefits industry can help employers improve business outcomes and achieve a happier, healthier workforce.

About the Research

LIMRA’s BEAT study (Benefits and Employee Attitude Tracker) is an annual survey exploring employee attitudes toward workplace benefits and general employment issues. The 2026 research surveyed more than 4,000 U.S. employees in January 2026. Read the full report here.

— ♦ —

MarketFacts October cover