How to become an employer of choice

The competition for exceptional talent has never been fiercer. While average companies scramble to fill positions with signing bonuses and flashy perks, standout organizations understand a fundamental truth: creating a workplace where people genuinely want to build careers requires much more than surface-level incentives.

Exceptional employers cultivate environments where team members feel challenged and supported, where their contributions matter, and where their personal growth aligns with company success. These organizations don't just attract applicants; they magnetize precisely the right people who stay, thrive, and champion their workplace to others.

This article breaks down the proven approaches that transform typical workplaces into destination employers. We've collected insights from companies that have mastered the art of becoming truly irresistible to top talent and distilled their experiences into straightforward strategies you can begin implementing right away.

Key takeaways

• Employers of choice attract and retain top talent by creating meaningful cultures, offering growth opportunities, and personalizing benefits that meet real-life needs.
• Flexible benefits like Lifestyle Spending Accounts (LSAs) are powerful tools that show employees they’re seen and valued as individuals, not just headcount.
• Authentic employer branding, inclusive practices, and active listening separate standout companies from those relying solely on perks and slogans.
• Professional development and transparent feedback loops build loyalty and trust, creating environments where high performers want to stay and grow.
• Structured implementation, leadership buy-in, and continuous measurement are essential for transforming initiatives into lasting cultural change.
• Forma simplifies flexible benefits, helping employers deliver modern, personalized experiences through customizable LSAs and scalable global administration. <span class="text-style-link text-color-blue" fs-mirrorclick-element="trigger" role="button">Schedule a demo</span> today.

What is an employer of choice?

An employer of choice is an organization that candidates actively seek to work for and where current employees feel valued and engaged. These companies typically offer competitive compensation, meaningful benefits, opportunities for growth, and a positive workplace culture.

The designation isn't self-proclaimed; it's earned through consistent actions and policies that prioritize employee well-being and satisfaction. Companies recognized as employers of choice often see reduced turnover, higher quality applicants, and stronger business performance.

Key characteristics of employers of choice

Organizations that achieve employer of choice status share several common attributes:

• Competitive compensation and benefits: They offer fair pay and comprehensive benefits packages that include innovative options like Lifestyle Spending Accounts that support employees' diverse needs.
• Strong company culture: They foster environments where employees feel respected, included, and aligned with the organization's mission and values.
• Professional development opportunities: They invest in employee growth through training, mentorship, and clear career advancement paths.
• Work-life balance: They respect boundaries and provide flexibility to help employees manage professional and personal responsibilities.
• Recognition programs: They acknowledge employee contributions through meaningful recognition and reward systems.
• Leadership quality: They develop leaders who inspire, communicate effectively, and demonstrate integrity.

Employer of choice strategies that work

Developing a reputation as an employer of choice requires deliberate planning and consistent execution. Here are effective strategies to help your organization stand out:

1. Make benefits personal and actually useful

Let's face it; nobody gets excited about table stakes benefits packages anymore. The secret weapon of magnetic employers? Flexible benefits that employees can actually use for things they care about.

With Lifestyle Spending Accounts (LSAs), your team members decide what matters in their lives. 

Maybe that's a gym membership for your fitness enthusiasts, language classes for your globe-trotters, or childcare support for your working parents. 

SHRM research shows Millennials and Gen Z prioritize flexibility and well-being more than previous generations; 79% want flexible work, 64% value adaptable parental leave, and 62% seek mental health support. This shows how people have varying needs and wants based on the aspect of their lives they are currently in.

The best part? This personalization sends a powerful message: "We see you as individuals with unique needs, not interchangeable resources." That signal alone separates employers of choice from everyone else competing for talent.

2. Build an employer brand people actually believe

Your employer brand isn't about slick recruitment videos or carefully crafted mission statements. It's about whether people genuinely believe working at your company would be awesome.

The companies winning the talent game share authentic employee stories that resonate because they're real. They maintain a presence where candidates actually spend time, not just on formal recruiting platforms. Most importantly, they ensure that what candidates see matches what employees experience once they're in the door.

The payoff? When your reputation honestly reflects your reality, you'll attract more qualified applicants who already align with your culture, while watching turnover drop compared to companies with mismatched branding.

3. Make diversity meaningful, not just visible

Smart candidates can spot the difference between genuine inclusion and performative diversity efforts from a mile away. Companies truly committed to creating welcoming environments implement unbiased hiring practices and design benefits that support diverse life experiences.

Beyond recruitment advantages, there's a practical business case too: according to a Harvard Business Review research, diverse teams made better decisions 87% of the time as opposed to homogeneous groups. When people from different backgrounds feel they genuinely belong, innovation flourishes, and word spreads quickly that your company is where talented people from all walks of life can thrive.

4. Allow people to grow

Nothing drives top performers away faster than feeling stuck. Exceptional employers create personalized growth paths that show people exactly how they can advance without leaving.

Think personalized mentorship programs paired with educational funding that lets people upskill without emptying their wallets. Companies that prioritize development see remarkable loyalty from their best people. According to a LinkedIn Learning stat, 94% of individuals would stay at a company if it prioritized their growth and learning. 

The ripple effect is powerful: when employees see clear paths forward, they become your most persuasive recruiters, authentically singing your praises to their talented networks.

5. Actually listen (then actually change things)

Everyone claims to value feedback, but employers of choice take it a step further by visibly acting on what they hear. Combine regular one-on-ones with anonymous channels where people can speak freely without fear of repercussions.

The magic happens when employees see their input translate into meaningful organizational changes. This creates a virtuous cycle of trust where people feel increasingly comfortable sharing honest perspectives because they've seen evidence that it matters.

How to implement employer of choice initiatives

Transforming your organization into an employer of choice requires systematic implementation. Here’s what you need to know.

Assess your current state

An honest look at your organization's current standing reveals critical insights for transformation. The first step is to mine your existing feedback channels for patterns and trends you might have missed. 

After that, you should carefully analyze exit interviews where departing employees often speak more candidly than they would while employed. Next, it's important to review what people are saying about your company on external sites like Glassdoor and Indeed, which can either validate or challenge your internal perspectives. 

This multi-angled assessment helps you avoid wasting resources on assumed problems while bringing genuine issues into sharp focus.

Develop a comprehensive strategy

The connection between workplace improvements and business outcomes must be crystal clear to gain meaningful traction. Based on your assessment, create a strategic plan that:

• Sets clear, measurable objectives
• Assigns responsibilities to specific team members
• Establishes realistic timelines
• Allocates necessary resources
• Includes methods for measuring success

Secure leadership buy-in

The authenticity of executive support becomes immediately apparent throughout your organization, no matter what words are used. 

Your first challenge is involving senior leaders from the beginning, so they develop genuine ownership instead of viewing these as HR initiatives they reluctantly support. You should also make it a habit to conduct regular progress discussions that maintain leadership engagement when competing priorities threaten to derail momentum. 

Your most persuasive approach is framing these initiatives through metrics executives already value: recruitment cost reduction, productivity enhancement, and innovation acceleration. The resulting leadership championship creates natural ripple effects that boost employee engagement across all levels.

Communicate effectively

The success of even brilliantly designed initiatives hinges on widespread understanding throughout your organization. Your messaging should create both emotional connection and practical clarity about the changes people can expect. You should:

• Share the vision and expected outcomes
• Provide regular updates on progress
• Celebrate milestones and successes
• Address concerns transparently
• Use multiple channels to reach all employees

Measure and adjust

The alignment between metrics and strategic goals separates meaningful measurement from empty exercises that waste everyone's time. Your first responsibility is gathering ongoing feedback that reveals the sometimes surprising gap between how initiatives were designed and how they're actually experienced. 

The next step is thoughtfully comparing outcomes against projections to identify both successes worth celebrating and areas needing refinement. Data-driven adjustments demonstrate a serious commitment beyond surface-level compliance efforts. The continuous improvement cycle shows everyone that becoming an employer of choice represents an ongoing journey requiring sustained attention rather than a temporary project with a definitive endpoint.

How Lifestyle Spending Accounts support employer of choice status

Lifestyle Spending Accounts play a powerful role in helping companies position themselves as an employer of choice. Unlike traditional, one-size-fits-all benefits, LSAs offer flexibility by allowing employees to use employer-provided funds on the services and products that matter most to them, whether that’s wellness, professional development, family care, or personal enrichment. 

This level of personalization demonstrates that the employer genuinely values individual needs and autonomy. Benefits that support diverse lifestyles and well-being goals help attract top talent and retain high performers. LSAs also show a commitment to modern work-life integration, which is increasingly important to younger generations. 

By empowering employees to take ownership of their well-being, LSAs create stronger engagement, higher satisfaction, and a positive workplace reputation. For companies aiming to stand out and cultivate loyalty, LSAs aren’t just a perk; they’re a strategic advantage.

Closing thoughts — Why choose Forma for flexible benefits

Forma is built to help companies deliver flexible, modern benefits that employees actually use. As a leading third-party administrator, Forma specializes in customizable LSAs and other flexible benefits that adapt to the diverse needs of your workforce. 

Unlike fragmented point solutions, Forma’s platform allows employers to manage wellness stipends, learning and development funds, family care support, and more, all from one centralized system.

What sets Forma apart is its ease of administration, global scalability, and real-time reporting tools. HR teams save time with automated tax handling, claims processing, and employee communications, while employees enjoy a seamless experience with multiple payment options and a curated vendor marketplace.

Trusted by top employers like Honda, lululemon, and Tripadvisor, Forma empowers organizations to offer high-impact benefits without the administrative burden. 

If you're looking to modernize your benefits strategy, Forma is the partner that makes it simple and scalable. <span class="text-style-link text-color-blue" fs-mirrorclick-element="trigger" role="button">Schedule a demo</span> with us today.