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Payroll Integrations Report Finds Benefits Are Key to Employee Retention

Payroll Integrations, the unified payroll API platform for employee benefits and financial wellness, has released Part 2 of its 2025 Employee Financial Wellness Report. The study finds that 58% of employees are staying in their current roles because of their benefits, reflecting a shift toward stability in a slowing job market and uncertain economy.

Among employees citing benefits as a reason to stay:

  • 67% highlight strong health insurance coverage

  • 53% point to competitive retirement plans

  • 53% value family-related benefits

“Employees have growing confidence in their financial wellness and their benefits, which is a strong sign that companies are headed in the right direction,” said Doug Sabella, CEO of Payroll Integrations. “But there’s still work to fully align offerings with employee priorities.”

Financial Wellness Rising, But Gaps Remain

The report, based on research by Dynata of 250 full-time employees and HR leaders nationwide, shows:

  • 44% of employees feel fully supported in financial wellness, up from 28% in 2024

  • Employers offer retirement savings assistance (76%), healthcare coverage (52%), and HSA/FSA support (51%)

  • Yet 64% of employers admit they could do more, citing opportunities in cost-of-living adjustments, budgeting tools, retirement guidance, and personalized benefits

Employee and Employer Priorities Are Misaligned

Employees focus on core benefits: healthcare, retirement, financial compensation, and mental health support. Employers, however, often emphasize childcare, emergency savings accounts, and HSAs, revealing a disconnect between perceived and actual priorities.

Generational differences are also significant:

  • Gen Z (18–27): 62% want health insurance improvements

  • Millennials (28–43): 43% prioritize fitness and wellness offerings

  • Gen X (44–59): 43% focus on additional compensation

  • Boomers (60+): 27% emphasize retirement plans and pet insurance

Admin Work Consumes Too Much HR Time

HR teams report spending 11 hours a week on payroll and benefits administration, with 35% saying they dedicate too much time to manual tasks. Automating these processes could free HR to:

  • Discuss benefits with employees (60%)

  • Boost engagement and relationships (58%)

  • Provide benefits education (56%)

“One of the biggest ways employers can increase support is by automating manual tasks,” Sabella noted. “This frees HR to focus on what employees care about most, ensuring benefits deliver real value.”

Implications for Employers

The report underscores the growing importance of financial wellness, benefits automation, and employee-centric HR strategies. Organizations that streamline administrative work and tailor benefits to employee priorities can:

  • Improve retention in a competitive labor market

  • Increase engagement across generations

  • Align HR initiatives with real employee needs

Payroll Integrations’ 2025 Employee Financial Wellness Report highlights that benefits are no longer just perks—they’re strategic tools for retention and workforce satisfaction.

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