Gartner Survey Finds Employee Total Rewards Preferences Have Shifted Toward Stability in 2026
“As workforce needs shift, and become more fragmented, medical benefits, long-term incentives, and flexible financial benefits have become more important,” said Augustus Vickery, Director Analyst in the Gartner HR practice. “In today’s uncertain business environment, organizations must reset their TR strategies to attract and retain critical talent while optimizing costs.”
Gartner has identified three shifts organizations can make to meet employees’ rewards preferences:
“In today’s uncertain business environment, organizations must reset their TR strategies to attract and retain critical talent while optimizing costs.”
Support Employees’ Path to Long-Term Wealth Creation
CHROs can take several actions to address this desire among employees for financial stability:
- Overhaul incentives strategy to better meet employee and enterprise needs
- Broaden access to LTIs for new talent segments critical to business strategy
- Pilot the use of cash incentive units with non‑executive/leadership workforce populations as a performance driver
Strip Out Well-Being Programs and Focus on Lifestyle Spending Accounts (LSAs)
“Employee well-being has not meaningfully improved in the past three years, despite significant organizational investment,” said Joe Coyle, vice president analyst in the Gartner HR practice. “Employees do not value most individual well-being benefits, except for LSAs, GLP-1 access, and fitness subsidies, offering CHROs the opportunity to make targeted changes to the well-being benefits offered.”
Organizations can transparently remove underutilized well-being benefits without impacting employee engagement or trust. By investing in flexible LSAs instead, employers enable employees to use the support they personally need. Fund-based benefits are also the most highly valued across core medical, life insurance, dental/vision, and family benefits categories.
Address U.S. Employees’ Medical Cost Concerns
CHROs should assess their programs to ensure investments that protect the workforce from unexpected medical costs are prioritized and communicated transparently to employees. GLP-1 access and fitness subsidies should be positioned as preventative health offerings in benefit communications to improve participation and connected health outcomes such as healthcare cost reduction and improved employee productivity.
