Employee benefits are heating up in 2025
What we learned from our latest worker survey results
Organisations are vying to attract and retain great people at all levels. Salary matters, of course, but no organisation has unlimited budgets. Employee benefits can be a great way to differentiate your organisation and show commitment to workers’ comfort and wellbeing.
But are employers getting it right? It’s easy to make assumptions about what workers will and will not value. That’s why our latest survey asked our panel of respondents from a range of roles and industries about what really counts for them
A lukewarm reception
80% of our survey respondents reported receiving benefits of some kind. But nearly half of them weren’t completely sure they knew or understood about all the benefits they received. It’s not surprising therefore that only 1 in 5 respondents agreed that they were fully satisfied with their benefits.
There’s an easy action for HR and benefits teams: make sure the communications and information you provide about benefits are clear and easy to understand, and don’t be afraid to promote your benefits. If they’re as good as you believe, it’s worth pointing out to employees what benefits are worth in terms of money, time, convenience or wellbeing. Monitor how well-used your benefits are: if the take-up is low, is it because they’re not valued or because people don’t realise that they’re there?
27% of our respondents complained about a lack of communication from their employer about their benefits. It’s all too common to provide a flurry of benefits information at the time when employees join the organisation, with no follow-up afterward. At the start of a new job, people are already overwhelmed with information, new processes and administration. Perhaps a benefits review or reminder a few weeks or months later could help employees to take a closer look at what’s on offer and what they could gain the most from.
Don’t neglect core benefits
73% of our survey respondents said that retirement and pension benefits were the most important type. Long-term financial security is always important to people, but in uncertain times, politically and economically, pensions feel even more significant. For younger workers in particular, employers may need to help them understand how pensions work and why investment in a seemingly distant future is so valuable, so they can make confident choices and comparisons.
Health insurance was second more important for our survey group. In the UK, this likely reflects concerns about the highly publicised issue of NHS waiting lists and day to day problems getting routine appointments. It can be hard to take time out of the working day or around caring responsibilities to attend appointments at times dictated by a public healthcare provider, so there’s a clear win-win in giving staff access to more flexible healthcare appointments and support.
Wellbeing and warmth: innovative benefits that match current needs
Employers that take the time to understand their employees’ lifestyles and priorities are best placed to offer more innovative and contemporary benefits. One such recent benefits launch, according to HR News, is the Heat Scheme. It allows employees to access interest free loans to insulate their homes and invest in modern clean energy systems, reflecting societal interest in environmentally efficient and lower cost power sources. Support for mental as well as physical health is a growth area in employee benefits. 13% of our respondents were interested in this. The HR Digesthighlights on-demand therapy apps, digital detox programmes to prevent burnout and subsidised therapy and wellness programmes as areas of focus for employee benefits in 2025.
For our survey cohort, vouchers for spa treatments, retail brands and holidays were almost as popular as mental health support. But these were surpassed by the enthusiasm of respondents for time off as a benefit, with 26% choosing an extra day’s holiday as the most desirable add-on benefit. We infer that time to unwind and relax are highly valued by today’s workforce, with its heightened awareness of work-life balance in an always-on digital world.
Make benefits a tangible demonstration of your people focused culture
Whatever package of benefits your organisation devises, it’s important to make sure it’s clearly explained, easy to access and reviewed regularly, to keep pace with employee expectations and market changes. Salary and bonus will always be front of mind for candidates and loyal employees, but the benefits that go with them can make a tangible difference to employees’ wellbeing and security as well as demonstrating that genuine understanding and care for people are embedded in the organisation’s culture.