| 50%Of employees have left a job for better benefits | $1,500Lower annual claims for virtual care users (Teladoc) | 30%Less healthcare spend for high-wellbeing orgs | 400%+ROI from preventing one turnover with TSB |
The private sector has known for decades what many nonprofits are only now beginning to reckon with: healthcare benefits are not just a cost of employment — they are a retention instrument with a measurable return on investment. Fortune 500 companies have invested billions in documenting this relationship, and the data is unambiguous. Benefits determine where people work. And increasingly, healthcare access determines whether they stay.
What the Private Sector Learned About Benefits and Retention
- 50% of employees in all-sector surveys report having left a previous position specifically to secure better benefits
- Employees who rate their benefits as ‘excellent’ are 69% less likely to be job searching than those who rate them as ‘poor’
- Companies with high wellbeing scores spend 30% less on healthcare overall and experience significantly lower turnover
- Benefits represent the second most important factor in employment decisions after base salary
Employees who rate their benefits as excellent are 69% less likely to be actively job searching. Benefits are not a perk. They are a retention mechanism with a documented ROI.
— Benefits and Workforce Research Synthesis, 2025
The Benefits That Move the Needle Most for Nonprofit Workers
| Benefit Category | Retention Impact | Accessibility for Nonprofits |
|---|---|---|
| Healthcare / Medical Access | Very High — top driver of departure when absent | Previously low; NOW HIGH via subscription telemedicine at under $20/mo |
| Mental Health Support | Very High — especially for frontline and direct-service staff | Previously low; NOW HIGH via unlimited virtual mental health visits |
| Flexible Scheduling | High — especially for Gen Z and Millennial workforce | High — policy change, no cost |
| Professional Development | Moderate — drives engagement and loyalty | Moderate — requires budget allocation |
| Traditional Group Health Insurance | High — but sets a high expectation threshold | Low — $700+/employee/month out of reach for most |
The ROI Calculation — Concrete Numbers for Real Organizations
Scenario 1: The 10-Person Nonprofit
Annual TSB subscription cost: $2,400 per year. Expected annual turnover at 19%: roughly 2 departures. Average replacement cost at 50% of a $42,000 average salary: $21,000 per departure. If improved healthcare access prevents just 1 departure annually, the ROI exceeds 1,700%.
Scenario 2: The 25-Person Social Service Agency
Annual TSB subscription cost: $6,000 per year. Expected annual turnover: approximately 5 departures. Average replacement cost: $90,000 annually. Reducing departures by 2 saves $42,000 against a $6,000 investment — a 700% return.
Scenario 3: The 5-Person Startup Nonprofit
Annual TSB cost: $1,200 per year. A single key departure can be existentially threatening — costing $30,000+ in lost funder relationships and delayed programming. A $1,200 annual investment that meaningfully reduces departure risk is a business continuity decision, not just a benefits decision.
For a 10-person nonprofit, preventing a single employee departure through better healthcare access generates a return exceeding 1,700% on the TSB subscription investment.
— Third Sector Benefits ROI Analysis, 2026
What Forward-Thinking Nonprofits Are Doing Right Now
- Starting with telemedicine — the highest-impact, lowest-cost, most immediately deployable healthcare benefit available
- Communicating the benefit actively so employees actually use what is available
- Extending access to part-time and seasonal workers wherever possible
- Pairing healthcare access with workload management and flexible scheduling
- Measuring utilization and surveying staff about benefits satisfaction
Third Sector Benefits — The Private Sector’s Best Retention Tool, Now at Nonprofit Prices
The private sector has known for decades that healthcare benefits drive retention. Third Sector Benefits makes that retention tool accessible to every nonprofit and small business — at under $20 per person per month, powered by Teladoc Health.
Every TSB subscription delivers six categories of care: 24/7 general medical, unlimited mental health visits, dermatology within 2 business days, nutrition counseling, personalized back care, and expert second opinions. No insurance required. No minimum enrollment. No HR department needed. Immediate family members included.
Stop losing good people for a preventable reason. Visit thirdsectorbenefits.com or contact Eric Snyder at eric@thirdsectorbenefits.com to book a free employer discovery call.
