Executive benefits evolve beyond retention as workforce pressures mount

NEW YORK, Aug. 24, 2026 /PRNewswire/ -- NFP, an Aon company and leading property and casualty broker and benefits consultant, today released its 2026 NFP U.S. Executive Benefits Trend Report. The report reveals a striking disconnect. While 81% of organizations surveyed say they cannot afford to lose their top talent, nearly half (49%) have not implemented any executive benefits strategies to manage the leadership transitions ahead. NFP's findings point to executive benefits evolving from retention tools into more strategic platforms for continuity and long-term workforce strategy.

Sixty-two percent of employers say succession planning will be a key focus, yet many have not implemented strategies to support these transitions. The gap is most visible in the mid-market, where limited infrastructure often turns leadership continuity into a reactive response rather than a long-term plan. But it isn't a question of whether these tools work. Nearly all organizations (99%) surveyed say executive benefits have successfully retained top talent and 94% say they are useful for attracting talent, suggesting that organizations trust retention tools but haven't built a plan around them.

"Many organizations know exactly what is at stake, but knowing isn't the same as being ready," said Tony Greene, President of NFP's Executive Benefits division. "The planning window is closing faster than many organizations realize, and retaining key employees has to move to a formal continuity strategy."

Regulatory changes compound stress

Recent changes under SECURE Act 2.0 are prompting more organizations to revisit how they support highly compensated employees with retirement and tax-planning flexibility. The report found that more employers are turning to nonqualified deferred compensation (NQDC) plans as a way to preserve pre-tax deferral opportunities and support retirement-income goals.

In financial services, 71% of organizations expect succession planning to become a greater priority. As more senior leaders approach transition points, decisions around NQDC payouts, retirement timing and tax exposure become more consequential. Yet only one in four financial services firms offer financial advisory support after a NQDC payout, highlighting a gap between transition planning priorities and support for the financial decisions that often accompany leadership transitions.

Education and personalization drive engagement

Even when organizations offer executive benefits such as NQDC plans, many struggle to meet employees' individual needs. In fact, one in five say their executive benefits strategy isn't flexible enough, leading 23% to prioritize increased education around NQDC plans over the next 12 to 18 months. Those efforts appear to be paying off, as satisfaction with deferred compensation plans has increased steadily over the past three years, suggesting that stronger planning and participant education can improve employee engagement and utilization.

"The data suggests that education and personalization matter just as much as plan availability," said Greene. "Organizations that invest in helping key employees understand and navigate their benefits are seeing higher levels of satisfaction as a result."

Stability in an unstable environment

Across the board, organizations are navigating a convergence of economic, operational and technology-related pressures. Nearly all (94%) are concerned about the economy, while 79% report concerns regarding rising cybersecurity threats. Additionally, only half (50%) feel confident managing data security risk as AI becomes more embedded in plan administration. Against that backdrop, most organizations are prioritizing stability over change, with 80% maintaining executive benefits offerings and 59% leaving compensation unchanged.

"Uncertainty is pushing employers into a 'wait and see' posture, and that caution is understandable," said Greene. "But there's also a risk in standing still. As leadership dynamics, technology and workforce expectations continue to shift, delaying action on key employee retention and benefits engagement can become a liability itself."

Rethinking executive benefits' role in workforce transitions

According to the report, organizations are moving away from static executive benefits offerings in favor of more integrated, strategic approaches to workforce transitions and business continuity.

To this end, organizations are building formal leadership continuity plans that emphasize knowledge transfer and successor development rather than relying on retention incentives alone. At the same time, employers are upgrading executive benefits programs to provide the flexibility and personalization needed to meet the changing priorities of today's leadership teams.

"The organizations that get ahead of this forthcoming leadership transition won't treat executive benefits as standalone programs," said Greene. "They'll connect leadership transition planning, employee education and flexible plan design so they can prepare for what's next instead of reacting to it."

About the 2026 NFP U.S. Executive Benefits Trend Report

NFP designed its 2026 U.S. Executive Benefits Trends Report to help businesses develop benefits plans that fit the varying needs of their key employees. Insights cited throughout this report were sourced from NFP's comprehensive database, as well as an online survey conducted among 273 executive benefits decision makers across various industries and organizational levels.