New Research Reveals What Retail Workers Want From Health Benefits

Retail workers want more from their health benefits than traditional plans provide. The industry’s notoriously high turnover rates are one indication that employees aren't satisfied with what most retailers currently offer. As a result, they're constantly searching for better compensation and will quickly move on if the company's benefits package doesn't meet their needs.

Improving health benefits and, in turn, employee retention is also in the employer's interest. Lower turnover means lower recruitment costs and allows retailers to deliver the consistent customer experiences that boost sales. However, with health insurance premiums rising to new heights in 2026, offering competitive health benefits has never been more challenging. Many retailers have been forced to pass costs on to their employees or offer less comprehensive coverage in order to preserve profit margins.

New research by leading HRA administration platform Take Command offers retailers a way forward. The 2026 State of Employee Health Benefits report gathers employees' perspectives on health coverage and explores ways for employers to meet their expectations without breaking the bank. The report is based on a survey of 1,000 American employees with group health insurance through their employer or an individual health plan. Here are the key takeaways for the retail industry.

Employees Are Worried About Rising Costs

Medical services and drugs are getting more expensive in the U.S., and insurance companies are reacting by raising premiums. Retailers that aren't able to pay more for their group plan are passing that extra cost onto their employees. According to the Take Command survey, 71.2 percent of retail employees saw the cost of their group health insurance increase for 2026.

Despite paying more, retail employees still aren't getting everything they need out of their coverage. Just 28.6 percent of survey respondents said that their employer's health insurance plan fits their personal healthcare requirements very well. Those gaps are reflected in out-of-pocket costs for 2025, averaging $450 for those with group insurance and $250 with individual insurance. In a cost-of-living crisis, those out-of-pocket expenses can completely break a person’s budget.

Premiums are expected to increase again next year as healthcare costs continue to climb. For retail employees, this is a serious concern. One survey respondent said, "I'm anxious about the rising costs of my healthcare and co-pays." Overall, 77.1 percent of retail employees said they were somewhat or very worried about healthcare costs rising in 2027.

Employment Decisions Come Down to Benefits

In the retail industry, concerns about rising healthcare costs are shaping employment decisions. One survey respondent said, "I fear that if I lose my job, I won’t have healthcare coverage." The data suggests they're not alone — most survey respondents (54.3 percent) said they had stayed in a job primarily because they didn't want to lose their health insurance.

What's more, over half (53.3 percent) of retail employees said they would not take a new employment opportunity due to a poor benefits package. Nine in 10 (91.4 percent) said health benefits were somewhat or extremely important when deciding whether to stay at or leave a job.

For retailers struggling to fill open roles or maintain a stable workforce, offering quality health benefits must take priority.

Group Insurance is a Poor Fit for Retailers

According to the survey, four in 10 (42.4 percent) retailers with group health insurance offer just one plan. But a single plan simply cannot meet the needs of every retail employee in every location. As a result, many are left with a tough decision: opt in to an ill-fitting plan selected by their employer or forgo their health benefits.

That lack of choice shows up in health benefits satisfaction rates. Just 38.1 percent of retail industry employees said they were very satisfied with the quality of care provided by their health insurance. An even smaller proportion, 32.4 percent, is very satisfied overall with their company's health benefits. Considering the extent to which benefits influence employment decisions, these are worrying statistics for retailers.

Retail employees want more control than traditional group insurance provides. When asked, "Who do you believe should control your health insurance choices?" the majority (57.1 percent) of respondents answered "Me, the employee," while just 14.3 percent said the employer. Retail employees also said they would prefer their employer to give them money to choose their own health insurance over being placed on a company plan.

Moving to a health reimbursement arrangement (HRA) makes this possible. HRAs empower employees to make their own health insurance decisions with an allowance provided by their employer. Each employee chooses the health plan that meets their personal medical needs and budget, and they're reimbursed on their paycheck, tax-free.

HRAs Deliver Choice and Cost Control

The Take Command report confirms what many Americans have already been feeling: health benefits are failing both employers and their employees. Instead of helping retailers compete for talent, group health insurance is having the opposite effect. Employees are paying more for coverage that doesn't always meet their needs, and they're becoming increasingly frustrated.

For retailers, finding a solution means viewing health benefits as an opportunity rather than a challenge. Retailers that get benefits right can attract talent ahead of their competitors and even employers in other industries. By offering health benefits employees actually want, retailers can also retain valuable team members, reduce hiring costs, and continue to deliver quality customer service.

HRAs are the logical choice for many retail businesses. The individual insurance model ensures that salaried and hourly workers in every role and any location can access the health services that matter most. Employers can even offer benefits to part-time and seasonal workers who would typically be excluded from group plans. Beyond improving hiring and retention, switching to a HRA helps retailers escape unsustainable premium renewals and finally take control of their health benefits budget.

Jack Hooper is the CEO and co-founder of Take Command, a Dallas-based SaaS company that offers health reimbursement arrangement administration.