Staff benefits used to be an afterthought. They were just a fruit bowl in the kitchen, or maybe a gym discount nobody used. But employees now expect more, and they’re willing to move jobs to get it.
Recent UK surveys show that while pay still matters, benefits are now a genuine deciding factor when people choose where to work and whether to stay.
The tricky part for employers is knowing which benefits actually make a difference. Plenty of companies spend money on perks that look good on paper but don’t match what their teams care about.
1. Flexible and Hybrid Working
If there’s one benefit that employees won’t give up without a fight, it’s flexibility. The shift to remote and hybrid working in 2020 changed expectations permanently, and any employer trying to drag everyone back to the office five days a week will be swimming against a strong current.
Data from PayData’s 2025 UK Reward Management Survey found that 93% of organisations now allow remote working on a regular or ad hoc basis, and 91% offer part-time options. Only 3% require full-time office attendance. Most businesses have settled on two to three days in the office per week, and employees broadly consider this fair.
What matters to staff is trust. They want the freedom to manage their own time without being micromanaged, whether that’s picking the kids up from school, avoiding a long commute on certain days, or simply doing focused work from home. If you’re still on the fence about flexible working, the debate is essentially over. The question now is how well you implement it.
2. Enhanced Pension Contributions
Pensions don’t sound exciting, but they’re consistently one of the most valued benefits in every UK employee survey. The Drewberry 2025 Employee Benefits and Workplace Satisfaction Survey found that enhanced pensions were the third most wanted benefit, with 58% of employees saying they’d prefer bigger pension contributions over other perks.
Auto-enrolment means every employer already contributes something, but the minimum rates are low. Employers who go above the statutory minimum send a clear message that they take their team’s long-term financial security seriously.
It’s worth noting that from April 2029, new rules will cap National Insurance relief on pension salary sacrifice at the first £2,000 of contributions. That doesn’t affect the value of the pension itself, but it does change the maths slightly for higher earners.
For many employees, a stronger pension contribution is more persuasive than a small pay rise. It’s tax-efficient for both sides and it builds genuine loyalty over time.
3. A Salary Sacrifice Car Scheme
Car-related benefits have been around for years, but the rise of salary sacrifice car schemes has changed the game completely. These schemes allow employees to lease a brand-new or used electric car through their employer, with payments taken from their gross salary before tax and National Insurance are calculated. The result is savings of up to 40-60% compared to a personal lease.
Exceptional Savings for Both Employees and Employers
What makes this benefit stand out is that it costs employers nothing to run. The scheme is entirely funded through the employee’s salary deduction, and employers actually save on National Insurance contributions for each employee who takes part. It’s one of very few benefits that genuinely works in everyone’s favour.
For employees, the appeal goes beyond the savings. Everything is often bundled into one monthly payment:
- Insurance
- Servicing
- Maintenance
- Breakdown cover
- Road tax
It’s also worth knowing that the government confirmed EV salary sacrifice schemes are completely unaffected by the recent pension salary sacrifice cap. No restrictions, no caps, no changes on the horizon. That makes it one of the most stable and tax-efficient employee benefits available right now.
4. Private Health Insurance and Wellbeing Support
With NHS waiting lists still not meeting government targets, private health insurance has become one of the fastest-growing employee benefits in the UK. Employees don’t want to wait months for a consultation or treatment when their employer could provide quicker access through a group health plan.
According to Howden’s Benefits 2026 report, demand for health-related benefits continues to climb, with costs predicted to outpace general inflation again this year. For employers, this means premiums are going up, but the benefit remains a powerful recruitment and retention tool. Many businesses are also pairing private medical insurance with broader wellbeing support such as Employee Assistance Programmes, mental health apps, and access to counselling services.
Mental health in particular is a growing priority. It’s a leading cause of workplace absence, and employers who invest in early intervention and support see a direct return through reduced sick days and higher productivity. Wellbeing isn’t a soft perk any more. It’s a practical business decision.
5. Extra Annual Leave and Paid Wellbeing Days
Time off is simple, universally appreciated, and relatively cheap to offer. Many UK employees feel they don’t get enough holiday, and businesses that go beyond the statutory 28 days (including bank holidays) instantly stand out.
Some companies now offer buy-and-sell holiday schemes, where employees can trade salary for extra leave through salary sacrifice arrangements. Others offer dedicated wellbeing days, separate from regular annual leave, that employees can use for anything from a mental health break to a medical appointment. These tend to be especially popular with younger workers who place a high value on work-life balance.
The four-day working week has also gained traction in the UK, with several high-profile trials reporting positive results. While a full shift to four days isn’t realistic for every business, it signals a broader trend: employees want more control over their time, and employers who offer it will find it easier to attract and keep good people.
How to Build a Benefits Package That Works
There’s no single formula that suits every company. A tech startup with a young workforce will have different priorities to an established manufacturing firm. The key is to ask your employees what they actually value, instead of guessing. Regular surveys, open conversations, and benchmarking against competitors in your sector will give you a much clearer picture.
It’s also worth considering how you communicate your benefits. Research suggests that a large proportion of UK workers do not fully understand the benefits available to them. The Drewberry 2025 survey we mentioned above found that only 36% of employees are fully aware of their benefits, while just 11% receive regular communication about them from their employer.
Finally, think about benefits that scale well and don’t create ongoing admin headaches. Salary sacrifice schemes are a good example here. Understanding how salary sacrifice is taxed can help employers see why these arrangements are so efficient. EV salary sacrifice in particular requires very little administration from the employer’s side, delivers measurable savings, and gives employees access to something genuinely valuable. It’s the kind of benefit that pays for itself.
In a Nutshell
The benefits that mattered five years ago aren’t necessarily the ones that matter today. Nowadays, employees want practical, financial, and lifestyle benefits that make a real difference to their day-to-day lives. Flexible working, strong pensions, affordable motoring through salary sacrifice, health cover, and more time off consistently come out on top.
For employers, the good news is that many of these benefits are either low-cost or cost-neutral. The harder part is making sure they’re well-communicated, easy to access, and genuinely tailored to what your team needs. Get that right, and you’ll find it far easier to hire well and hold onto the people who matter most.