July 1999

In recent years, benefits have become almost as important to employees as salary. In 1960, businesses paid about $23.7 billion on employee benefits; in 1980 that figure had risen to $266 billion and it rose again to $747 billion in 1994.

What benefits are most important to employees? A William M. Mercer survey asked 25,000 employees at nine large companies to choose the benefits they might use from a list of 65. Their top ten answers:

1. 401(k): 91%

2. Dental Plans: 88%

3. Coverage for preventive health care: 87%

4. Employer stock purchase plan: 86%

5. Pension plan: 83%

6. Medical insurance: 82%

7. Vision care: 82%

8. Life insurance: 74%

9. (Tie) Flextime: 74%

10. Events or outings: 71%