Benefits packages can vary widely by employer and location. However, a new Forage study finds the East North Central region of the U.S. — which consists of Indiana, Illinois, Michigan, Ohio, and Wisconsin — provides the best employee benefits in the nation.
Our findings are based on an analysis of data from the U.S. Bureau of Labor Statistics’ National Compensation Survey.
The leading East North Central region has the highest score of all census divisions for retirement benefits, life insurance, and short-term disability insurance. Conversely, the last-ranked West South Central region — which includes Arkansas, Louisiana, Oklahoma, and Texas — scored lowest in terms of retirement benefits, life insurance, and long-term disability.
Key Findings
The study also found:
- The No.2-ranked Middle Atlantic region (New Jersey, New York, and Pennsylvania) scored the highest for paid leave policies.
- New England was the top-scoring region in terms of “other” benefits, which include flexible workplace schedules, financial planning, and nonproduction bonuses, but scored the lowest for health care.
- The Pacific region (Alaska, California, Hawaii, Oregon, and Washington), conversely, ranked the highest for health care and the lowest for short-term disability insurance and “other” benefits.
- Relatively few workers across the country have access to buzzy fringe benefits like child care, student loan repayment, and subsidized commuting, for which the national access rates are 11%, 4%, and 9%, respectively.
In this article, we cover:
- How We Ranked the Regions With the Best Benefits
- The Regions With the Best Benefits
- Comparing the Regions With the Best Benefits
- Considering Employer Benefits in a Tough Job Market
- Full Methodology
How We Ranked the Regions With the Best Benefits
We referenced March 2022 employer benefits data from the National Compensation Survey for nine census regions/divisions. The divisions are as follows:
- New England: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont
- Middle Atlantic: New Jersey, New York, and Pennsylvania
- East North Central: Indiana, Illinois, Michigan, Ohio, and Wisconsin
- West North Central: Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, and South Dakota
- South Atlantic: Delaware, District of Columbia, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia, and West Virginia
- East South Central: Alabama, Kentucky, Mississippi, and Tennessee
- West South Central: Arkansas, Louisiana, Oklahoma, and Texas
- Mountain: Arizona, Colorado, Idaho, New Mexico, Montana, Utah, Nevada, and Wyoming
- Pacific: Alaska, California, Hawaii, Oregon, and Washington
We scored and ranked these divisions on 41 indicators across seven popular benefits categories: retirement, health care, life insurance, short-term disability insurance, long-term disability insurance, leave, and other benefits.
Crunching the Numbers
Our scores are weighted, meaning that not every category contributes equally to a division’s final score. Here is the breakdown of the score-weighting:
- 25%: Health care
- 25%: Leave
- 25%: Other benefits, such as employee assistance programs, wellness programs, and dependent care flexible spending accounts
- 10%: Retirement
- 5%: Life insurance
- 5%: Long-term disability insurance
- 5%: Short-term disability insurance
We normalized all individual indicators within these categories by converting them to percentiles. We then calculated a weighted average of these normalized scores to get an overall score for each region. Note: For the indicators that describe the percentage of insurance premiums that employees pay, a lower value is better. We took this factor into account when computing scores.
For more details, see the Full Methodology section.
The Regions With the Best Benefits
1. East North Central
- Health Care: 14.93
- Leave: 15.12
- Other Benefits: 15.53
- Retirement: 8.61
- Life Insurance: 4.35
- Short-Term Disability: 4.31
- Long-Term Disability: 4.17
- Total Score: 67.02
Indiana, Illinois, Michigan, Ohio, and Wisconsin make up the East North Central census division within the Midwest region. This division has the highest overall score for employer benefits of all the divisions. In addition, this division has the highest score for retirement benefits and short-term disability insurance.
The East North Central division is tied with the East South Central division for the highest percentage of workers with access to defined benefit retirement plans (26%).
Sixty-seven percent of workers in this division have access to a defined contribution retirement plan, which is one percentage point behind the South Atlantic division and five percentage points higher than the percentage of all workers nationally (62%).
Sixty-three percent of workers in the East North Central division have access to a life insurance policy through their employer – tied with the Mountain division for the highest percentage across all divisions.
Forty-four percent of workers in the East North Central division have access to short-term disability insurance through their employers, the second-highest behind the Middle Atlantic region. Of workers who have access to short-term disability insurance, an employee contribution is not required for 96% of them. Nationally, an employee contribution is not required for 86% of workers with access to short-term disability insurance.
The division also scored second-highest for long-term disability insurance, with 42% of workers having access. Nationally, 36% of workers have access to long-term disability insurance.
2. Middle Atlantic
- Health Care: 17.01
- Leave: 19.14
- Other Benefits: 14.9
- Retirement: 6.39
- Life Insurance: 2.22
- Short-Term Disability: 2.78
- Long-Term Disability: 0.83
- Total Score: 63.27
The Middle Atlantic census division, which consists of New Jersey, New York, and Pennsylvania, earned second place in our ranking. This division scored the highest of all the divisions for paid leave policies and was among the highest-scoring for health care and retirement.
Of all the divisions, the Middle Atlantic has the highest percentages of workers with access to paid family leave (34%), paid funeral leave (66%), paid military leave (39%), and paid personal leave (56%).
In terms of health care, 25% of workers in these three states have access to retiree health care benefits at age 65 and older through their employers, the highest percentage of all the divisions.
Additionally, employees in the Middle Atlantic pay 19% of insurance premiums for single coverage, tied with the Pacific division for the lowest percentage. Employees in these three states pay 27% of premiums for family coverage, the lowest percentage of all the divisions.
Thirty-one percent of workers in New Jersey, New York, and Pennsylvania have access to a defined benefit retirement plan, the highest percentage across all the divisions.
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3. South Atlantic
- Health Care: 11.81
- Leave: 14.97
- Other Benefits: 16.79
- Retirement: 6.94
- Life Insurance: 3.15
- Short-Term Disability: 2.22
- Long-Term Disability: 2.36
- Total Score: 58.24
Delaware, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia, West Virginia, and Washington, D.C. make up the South Atlantic census division, which is third on our list of the best regions for benefits.
The South Atlantic census division had the second-highest score of all the divisions for other benefits. For instance, the percentages of workers in these states with access to a flexible workplace, wellness programs, and nonproduction bonuses are among the highest (9%, 48%, and 43%, respectively).
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4. Mountain
- Health Care: 17.01
- Leave: 11.11
- Other Benefits: 12.12
- Retirement: 5
- Life Insurance: 3.24
- Short-Term Disability: 2.92
- Long-Term Disability: 3.33
- Total Score: 54.74
The Mountain census division contains Arizona, Colorado, Idaho, New Mexico, Montana, Utah, Nevada, and Wyoming.
This division tied with the Middle Atlantic for the second-best health care score, with 75% of workers in these states having access to health care coverage through their employers. The Mountain division has the highest percentage of workers with access to a health savings account through their employer of all divisions (44%). Seventy-four percent of workers in the Mountain division have access to outpatient prescription drug coverage through their employers, the second-most of any division.
The Mountain division also had the third highest score for life insurance and short-term disability access, with 63% of workers having access to life insurance and 37% of workers having access to short-term disability insurance through their employers.
5. New England
- Health Care: 8.91
- Leave: 16.36
- Other Benefits: 17.17
- Retirement: 3.06
- Life Insurance: 2.59
- Short-Term Disability: 2.22
- Long-Term Disability: 4.03
- Total Score: 54.34
The states that make up the New England division are Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont.
New England was the top-scoring division in terms of other benefits, including financial planning, nonproduction bonuses, and flexible work schedules. Twenty-eight percent of workers in New England have access to financial planning, the highest percentage of all the divisions. New England also has the highest percentage of workers with access to nonproduction bonuses (44%). Eighteen percent of workers in New England have a flexible work schedule, tied for the highest with the Middle Atlantic division.
New England scored the lowest of all the divisions in terms of health care. Only 71% of workers in New England have access to health care coverage through their employer, the lowest percentage of all the divisions.
This division also had the second lowest score for retirement benefits, with 21% of workers having access to defined benefit plans, the lowest of all the divisions.
6. Pacific
The Pacific division contains Alaska, California, Hawaii, Oregon, and Washington. Though it was the top-ranked division for health care coverage, it was lowest-ranked for short-term disability insurance and other benefits, and it landed in the bottom three for retirement and leave benefits.
- Health Care: 19.79
- Leave: 12.19
- Other Benefits: 9.6
- Retirement: 4.44
- Life Insurance: 2.69
- Short-Term Disability: 1.39
- Long-Term Disability: 2.92
- Total Score: 53.01
Seventy-six percent of workers in the Pacific division have access to health care coverage through their employer, the highest of any of the divisions. This division also had the highest rate of access to dental care (54%), vision care (43%), and outpatient prescription drug coverage (75%). The Pacific region has a noticeably higher percentage of workers with access to health care benefits for unmarried domestic partners, both same-sex and opposite-sex, than the eight other divisions (65% and 63%, respectively).
Only 32% of workers in the Pacific division have access to short-term disability insurance, tied for the second-lowest percentage of all divisions with the East South Central division. Of workers in this division with short-term disability coverage, an employee contribution is not required for 91% of them, tied with New England for the second-lowest percentage.
In the Pacific division, 18% of workers have access to financial planning through their employer, the lowest of all divisions.
7. East South Central
- Health Care: 11
- Leave: 15.9
- Other Benefits: 11.36
- Retirement: 7.5
- Life Insurance: 1.85
- Short-Term Disability: 2.78
- Long-Term Disability: 2.08
- Total Score: 52.47
Alabama, Kentucky, Mississippi, and Tennesse make up the East South Central division. It ranks low on our list of the best regions for benefits because it scored poorly compared to other divisions in terms of health care coverage, life insurance, long-term disability coverage, and other benefits.
The East South Central division has the lowest rate of workers with access to dental care through their employers (29%) and the second-lowest rate of workers with access to vision care (17%). This division is tied with the West North Central division for the lowest percentage of workers with access to health care benefits for unmarried same-sex domestic partners (33%) and tied with the East North Central division for the lowest percentage of workers with access to health care benefits for unmarried opposite-sex domestic partners (31%).
The division is also tied with the South Atlantic division for the second-highest percentage of insurance premiums paid by employees for family coverage (36%).
The East South Central division scored near the middle of the pack in terms of workers with access to life insurance and long-term disability insurance through their employers (61% and 34%, respectively).
8. West North Central
- Health Care: 12.73
- Leave: 7.41
- Other Benefits: 14.52
- Retirement: 5.56
- Life Insurance: 3.33
- Short-Term Disability: 4.03
- Long-Term Disability: 4.44
- Total Score: 52.02
The West North Central division encompasses Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, and South Dakota. It scored second-to-last in our ranking in part because it scored poorly for paid leave access in comparison to other divisions. However, it ranked well for life insurance, short-term disability, and long-term disability.
This division tied with several others for the lowest percentage of workers with access to paid family leave (20%). Its rates of workers with access to paid funeral leave (53%), paid holiday leave (76%), and paid military leave (27%) are also among the lowest.
Sixty-two percent of workers in the West North Central division have access to life insurance coverage through their employer, the second-most behind the East North Central and Mountain divisions, which each have 63%.
9. West South Central
- Health Care: 11.81
- Leave: 12.81
- Other Benefits: 13.01
- Retirement: 2.5
- Life Insurance: 1.57
- Short-Term Disability: 2.36
- Long-Term Disability: 0.83
- Total Score: 44.89
The lowest-ranking division on our list of the best regions for benefits is the West South Central division, which includes Arkansas, Louisiana, Oklahoma, and Texas.
This division ranked the lowest in terms of retirement benefits, life insurance, and long-term disability. Only 55% of workers in the West South Central division have access to a defined contribution plan through their employer, the lowest percentage of all the divisions.
The percentage of workers with access to life insurance coverage through their employers is also among the lowest across divisions (59%). The division also has the lowest percentage of workers with access to long-term disability insurance through their employers (28%).
Comparing the Regions With the Best Benefits
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Considering Employer Benefits in a Tough Job Market
To compete for top talent, companies need to offer more than just a fair salary and health insurance, says Amy Spurling, founder and CEO at Compt.
“We’re seeing the most competitive companies offer personalized benefits through lifestyle spending accounts that also support core values like health and wellness,” she adds.
In the current economic environment, companies will have to get creative to keep benefits offerings competitive. “With tighter budgets, companies will be looking to cut extraneous spending. They will also have to balance maintaining inclusive benefits with a smaller budget,” Spurling says.
If you’re a job seeker navigating this tough market, keep benefits top of mind. When comparing job offers, make sure to consider the total value of each benefits package.
“A job offer with a lower salary but a generous health insurance plan and a quarterly home or family stipend to help pay for bills might be more valuable than a higher salary with no benefits,” Spurling says.
Remember to think long-term, she adds. A job offer with greater potential for career advancement in the future may be more valuable than an offer with a higher starting salary.
“Pay attention to the language [the company] uses around benefits,” Spurling says. “A company that truly cares will offer benefits that support both employees and workplace culture.”
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Full Methodology
The categories we used to rank regions each contain multiple indicators from the National Compensation Survey. Here’s a breakdown of all the indicators by category:
- Retirement
- Percentages of workers with access to either or both of the following through their employer:
- A defined benefit plan
- A defined contribution plan
- Percentages of workers with access to either or both of the following through their employer:
- Health care
- Percentages of workers with access to the following through their employer:
- Any medical, dental, vision, or outpatient prescription drug coverage
- Medical care coverage
- Dental care coverage
- Vision care coverage
- Outpatient prescription drug coverage
- A health savings account
- Health care benefits for same-sex unmarried domestic partners
- Health care benefits for opposite-sex unmarried domestic partners
- Retiree health benefits (defined as a health plan that provides coverage to a retiree beyond what is mandated by COBRA or other health continuation laws) under age 65
- Retiree health benefits (defined as a health plan that provides coverage to a retiree beyond what is mandated by COBRA or other health continuation laws) at age 65 and older
- Percentage of medical care premiums paid by an employee for single coverage
- Percentage of medical care premiums paid by an employee for family coverage
- Percentages of workers with access to the following through their employer:
- Life insurance
- Percentage of workers with access to a life insurance policy through their employer
- Percentage of workers with basic life insurance coverage where an employee contribution is not required
- Percentage of workers with fixed multiple of annual earnings formula life insurance coverage with no maximum benefit amount
- Short-term disability insurance
- Percentage of workers with access to short-term disability insurance through their employer
- Percentage of workers with short-term disability coverage where an employee contribution is not required
- Long-term disability insurance
- Percentage of workers with access to long-term disability insurance through their employer
- Mean fixed percentage of annual earnings for benefit amount across workers with long-term disability coverage where the benefit payment is a fixed percentage of annual earnings
- Leave
- Percentages of workers with access to the following:
- Paid family leave
- Paid funeral leave
- Paid holiday leave
- Paid jury duty leave
- Paid military leave
- Paid personal leave
- Paid sick leave
- Paid vacation leave
- Median number of holidays granted across all workers with paid holidays
- Percentages of workers with access to the following:
- Other benefits
- Percentages of workers with access to each of the following through their employer:
- Child care benefits
- Employee assistance programs
- A flexible workplace
- A flexible work schedule
- Wellness programs
- Subsidized commuting
- Financial planning
- Student loan repayment
- Nonproduction bonuses
- Section 125 cafeteria benefits – flexible benefits
- Section 125 cafeteria benefits – dependent care flexible spending account
- Percentages of workers with access to each of the following through their employer:
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