Federal employees prioritize benefits—but key coverage gaps remain

A recent survey has highlighted how crucial benefits packages are for federal employees in the US. Over 20,000 workers took part in the 2023 Federal Employee Benefits Survey, revealing strong preferences for health, retirement, and family support programs.

Many respondents admitted these benefits shaped their choice to join—or stay in—government roles. Yet gaps in awareness and coverage still exist, particularly around long-term care and fertility support.

The 2023 survey gathered responses from roughly 20,600 federal workers. It found that 90% considered key benefit programs either important or extremely important. Over two-thirds even said these offerings directly influenced their decision to take a federal job.

For younger employees, paid parental leave proved especially significant. Some 68% of millennial and Gen Z workers cited it as a major factor in accepting their positions. Meanwhile, 63% of all respondents believed private companies should step in to offer fertility benefits if federal plans fall short.

The survey also exposed knowledge gaps. A striking 79% of employees did not realise that Federal Employees Health Benefits (FEHB) plans cover obesity medications. Another issue arose with the Federal Long Term Care Insurance Program, which helps fund care for those needing daily assistance. Applications for this scheme were paused in late 2022, though exact figures on how many workers enrolled before the suspension remain unclear.

Retention was another key theme. More than three-quarters of employees said benefits played a role in their choice to remain in government service. Health and retirement packages, in particular, were frequently named as top reasons for staying.

The findings underline how heavily federal workers rely on benefits when making career decisions. With many employees unaware of existing coverage options, agencies may need to improve communication. The suspension of long-term care applications further complicates planning for those needing future support.

As younger generations prioritise family-friendly policies, the demand for expanded benefits—like fertility and parental leave—is likely to grow.