Why benefits matter for retention
Public employers often cannot match private-sector pay. Benefits — health coverage, retirement, leave, flexibility and support resources — are a large part of why people choose and stay in public service. Research on the state and local government workforce consistently lists benefits among the reasons people join and remain.
How Section 125 plans work for local governments
A Section 125 cafeteria plan allows employees to pay for qualified benefits with pre-tax dollars, which can reduce taxable wages for both the employee and the employer. The IRS publishes guidance specifically for government entities. Rules on eligibility and qualified benefits apply, so work with your benefits advisor and legal counsel.
Making benefits visible
- Explain benefits in plain language at hiring, at open enrollment and during the year
- Tell employees what their total compensation is worth, not only their salary
- Make support resources easy to reach from a phone
- Ask employees what they value and adjust over time
Where Frontline fits
Frontline pairs personalized physical and mental health support through 360 Advantage with leadership insight through Frontline Pulse, structured to use Section 125 so the program can create savings as well as support.
Frontline's planning model uses national benchmarks: an 8% annual turnover rate, about $70,000 per departure, and a 2.7% retention improvement, plus Section 125 savings of about $1,230 per participating employee per year.
Sources and further reading
See what retention is worth to your agency.
Frontline's impact calculator estimates one-year and five-year retention value and Section 125 savings based on participation.