2026 Employee Benefits Benchmarking Report

Statutory Benefits

Statutory benefits sit at the core of any employee benefits package. As a UK employer, you’re legally required to offer certain benefits to your employees. This is to protect the rights and wellbeing of staff and ensure fair labour practices.

However, just because these benefits are mandatory, doesn’t mean they can’t be leveraged to boost your employer brand and value proposition. Enhancing areas such as sick pay, holiday, and maternity/paternity pay could make all the difference in attracting, retaining or potentially losing top talent.

Fully-Paid Sick Leave

The 2026 data shows the majority of employers (32.9%) are offering 2-4 weeks of fully paid sick pay. In 2025, the most commonly offered was 1-4 weeks with 51.2% of businesses choosing this option.

However, the number of businesses offering Statutory Sick Pay only (SSP) remains fairly consistent with last year at 9.4%. With SSP currently set at £118.75 per week, employers should recognise the importance of providing robust financial support for their workforce.

Money worries was the top cause of employee stress in 2025, with 80% admitting it negatively impacts their productivity in the workplace. By providing enhanced sick pay, employers can alleviate these anxieties, allowing employees to focus on recovery without the added stress of financial strain.

Additional Maternity Pay

Since 2025, we’ve seen a regression in the maternity pay offered by companies, with some interesting changes. The number of employers offering 13-19 weeks of enhanced maternity pay has fallen from 23.2% to 16.5%, and those offering statutory maternity pay has increased to 18.5% from 15.8% in 2025.

However, the number of businesses offering 20-26 weeks of paid maternity leave has had a slight increase, with 26.5% compared to 25.9% in 2025. With many businesses raising the bar on maternity benefits, those still providing the minimum may be at risk of falling behind.

Fully-Paid Paternity Leave

A similar downward trend can be seen in the level of paternity pay provided by companies. In 2025, 14% of responding employers offered statutory pay only – that number has risen to 18.8% this year.

However, the number of employers offering 4 weeks paid paternity leave has risen to 20.4%, slightly up from 19.3% in 2025. More equitable paternity pay helps fathers close the gap with their female counterparts, who have traditionally received much more paid leave. By offering longer paternity leave, companies are supporting shared parental responsibilities and create a more inclusive work environment.

It’s important to take the time to get the implementation of your mandatory benefits right. Although you need to offer them, there is a lot you can do to enhance these benefits, which can take them from being a box-ticking exercise to a golden opportunity for employee engagement.

Nadeem Farid
Head of Health & Wellbeing Benefits

Work-Life Balance

Work-life balance continues to be a hot topic in 2026, and is a key driver for job satisfaction. In fact, separate employee research² found better work-life balance to the top reason for employees considering a job change, with over a third citing uneven work-life balance as their main cause of unhappiness.

Offering benefits such as enhanced holiday and flexible working options can be a cost-conscious way to significantly boost both staff morale and overall performance.

Annual Leave

The number of employers offering 25, 28, and 30 days of annual leave (excluding bank holidays and service-related days) remains consistent compared to 2025’s respondents, with these figures continuing to be the most common. 27.5% of employers provide 24 days or less.

While it may seem simple, holiday entitlement is one of the most effective and affordable ways to boost employee satisfaction. Encouraging staff to take regular breaks not only prevents burnout but also sends a clear message that you value their wellbeing – both mentally and physically.

80% of employees admit stress impacts their workplace productivity, so giving your team the time to recharge not only enhances your culture, but can also help to boost your bottom line.

When reviewing your benefits, don’t overlook the importance of a competitive holiday policy. Even with a great salary, offering insufficient holiday can drive employees to seek a better work life balance elsewhere.

Holiday Accrued With Service

The trend around increased holiday allowance with service remains steady. More than a quarter of employers (26.8%) continue to offer up to 5 additional days, providing a tangible reward for loyalty. However, 23% of businesses still do not offer this benefit.

Given its ability to enhance employee retention and recognise long-term commitment, this remains a missed opportunity for many organisations. Offering extra holiday days as a reward for tenure is a simple yet impactful way to show appreciation and encourage employees to stay with your company.

Holiday Buy and Sell

54.7% of this year’s respondents offer some level of holiday trading. A benefit such as this can provide great value for those who always use their full holiday entitlement, as well as for those who would prefer more money in their pocket.

It provides staff with greater flexibility and freedom, giving them control of their own work-life balance. The 44% who still aren’t embracing holiday trading are missing out on a simple-to-implement reward with potential National Insurance savings (if done via Salary Sacrifice).

Remote Working

Since the start of this decade, remote work has become a staple benefit, changing the way employers approach work-life balance and flexibility. Evidently, employees value their remote / hybrid working benefits above all else, with flexible working patterns consistently topping the list of most-wanted company benefits².

It’s encouraging that most employers continue to allow staff to work remotely at least one day a week, but out of the 2026 respondents, the number of fully on-site businesses has increased, shooting up to 15.7% compared to just 9% in 2025. The number of businesses letting their employees choose their own on-site days has stayed consistent at 14%. offering the flexibility employees crave for better balance.

This could suggest that while employers are recognising the value of offering some flexibility, they’re also seeking to regain more control over their company culture via in-person working.

Employees’ lack of work-life balance has a knock-on effect for your business. When left unaddressed, it affects far more than employee wellbeing – taking a toll on productivity, driving up turnover, and ultimately impacting your entire business.

Joe Toft
Senior Employee Benefits Consultant

Employee Benefits

Separate employee research² found that only 12% of UK employees are satisfied with their current benefits, and as more than a third would consider switching jobs for better pay and benefits, improving your benefits package could be key to retaining talent and staying competitive.

Beyond your mandatory obligations, there’s a wealth of additional benefits that can enhance your overall employee rewards package. By tailoring your benefits to meet the diverse needs of your workforce, you can create a more attractive and supportive environment for your team.

It’s vital to get your employee benefits right. They have the ability to boost employee engagement and happiness, as well as significantly improve productivity levels.

Employee Benefits Package

Health, wellbeing, and work-life benefits have topped the list of most-offered benefits this year, and it’s good to see a group protection policy making it into the top five.

Home working (45.8%), flexible hours (43.1%), casual dress code (35.8%), Private Health Insurance (31.5%), and learning and development budget (30.7%) are the most popular benefits offered by this year’s respondents. This highlights a continued emphasis from employers on flexibility and lifestyle-led benefits, often taking precedence over more comprehensive protection offerings.

Outside of the top five, more employers are prioritising health and wellbeing offerings, such as Virtual GPs, dental insurance, enhanced annual leave, and enhanced pension contributions.

Group Life Insurance

2x salary continues to be the most common level of Group Life Insurance cover, followed by 3x salary. However, we’ve seen some interesting shifts in the landscape. Fixed amounts of cover remain popular this year, with 16.6% of respondents choosing this option, similar to 17.1% in 2025.

Life Insurance remains a cost-friendly and tax-efficient benefit for employers. Premiums are treated as a business expense and are tax deductible. If you’re considering enhancing your benefits package, increasing the level of life cover is a simple and impactful way to do so. (As with all insurance, Group Life Insurance has conditions and limitations. Employers should review the full policy terms with their adviser before making decisions.)

Private Health Insurance

We’re thrilled to see so many employers offering Group Health Insurance this year. While 28.2% of last year’s respondents offered it, that number had grown to 31.5% for 2026.

However, cover levels fall short of last year, with only 26% offering comprehensive coverage (compared to 39.2% in 2025). Mid-range coverage is the most popular, with 17.9% of employers choosing this option.

Health Insurance continues to be one of the most sought after employee benefits. Offering benefits that your team actually values can boost morale and productivity across your team. Seeing as only 12% of employees feel their employer is “very” committed to their wellbeing, providing perks like Group Health Insurance can make a huge difference. And if you’re looking to become B Corp certified or improve your score, benefits like this can help you get there, as Health and Wellbeing is a big part of the assessment.

Group Income Protection

34% of this year’s employers said they don’t offer Group Income Protection to their employees. For those that do, most (25.2%) provide between 50-59% of an employee’s salary – similar to those we surveyed in 2025.

While Group Income Protection may come at a higher cost than benefits like Group Life Insurance, it’s a powerful way to support your employees’ financial security if they’re unable to work due to illness or injury. Offering IP not only demonstrates your commitment to their wellbeing, both in and out of the workplace, but also provides peace of mind that they’re protected when life takes an unexpected turn. (Group Income Protection policies typically include a deferred period (usually 4 to 26 weeks) during which no benefit is paid. The cost of cover can vary based on your workforce demographics and claims history.)

Group Critical Illness Cover

37% of employers don’t offer Group Critical Illness Cover, and for those that do, fewer are offering the higher levels of cover. The 3x salary level has dropped from 30.4% in 2025 to just 11.2%, and 2x salary has fallen from 33.7% in 2025 to 20% this year. A fixed benefit amount is the most popular for this year.

While the benefits of a Group Critical Illness policy may not be immediately obvious to employers, many policies include additional perks such as virtual GP services, mental health support, and second medical opinions, further enhancing your benefits package and positioning your company as a truly caring employer – and helping to tackle smaller health hurdles before they become a larger issue requiring sick leave. (Not all serious illnesses are covered, and pre-existing conditions are typically excluded.)

Benefits Communication

Email remains the most common method used when it comes to communicating benefits, with 57.2% of this year’s respondents opting for this channel. This was followed by employee handbooks (37.5%), in-person 1-2-1 meetings (28.9%), and internal messaging (27.2%) such as Slack and Teams.

There appears to be a clear gap when it comes to communication. Employers predominantly rely on email and static channels such as handbooks, yet our 2025 Workplace Satisfaction Survey² found only 11% of employees say they receive regular benefits communication, and just 36% say they fully understand their benefits.

The use of employee benefits platforms remain popular this year, with more than a quarter of employers using them to communicate their benefits. Benefits platforms not only simplify the management and communication of benefits, saving HR teams valuable time, but they also offer the ability to generate Total Reward Statements at the touch of a button. This is a significant advantage, as more employers are using these statements to provide employees with a clear, comprehensive view of their total benefits package – including its full monetary value.

Just telling your employees about their benefits once isn’t going to cut it. The marketing “Rule of Seven” suggests that people need to hear a message seven times before they’ll take action. So, if you’re not giving your employees a regular nudge, then it’s likely they aren’t paying attention – and aren’t appreciating the benefits you pay money for.

Danielle Bines
Employee Benefits Consultant

Formal Benefits Review

It’s positive to see that the vast majority of this year’s respondents (80.2%) are continuing to review their benefits at least once a year, if not more. Regular reviews, such as annual and bi-annual check-ins, help to ensure that your employee benefits remain relevant to the evolving needs of your business and its employees.

With rising costs and increasing demands from employees, it’s more important than ever for businesses to ensure they have the right benefits in place. If employees aren’t fully engaging with the benefits on offer, it not only leads to wasted resources, but also leaves them feeling undervalued and dissatisfied.

Cost Savings From Reviews

It’s good to see that the majority (51.9%) of employers this year have managed to bring about cost savings as a result of their formal benefits reviews.

Regularly reviewing and tailoring benefits ensures that employers are investing wisely, offering packages that truly meet the needs of their workforce, which in turn boosts retention and employee satisfaction.

Workplace Pensions

Separate employee research² found enhanced employer pension contributions to be employees’ third most-wanted benefit in 2025, and almost two thirds³ would rather have higher pension contributions than other benefits. Financial stability is evidently a hot topic for workers, and with a little planning, employers can turn a mandatory requirement into a truly valued employee engagement tool.

Types of Workplace Pension

There’s a relatively even split in terms of the type of Workplace Pensions UK employers are providing. Group Personal Pensions (GPP) came out on top with 37.7% of employers saying they offered this type of scheme.

Deciding which type of Workplace Pension is best depends on the specific needs and circumstances of each business. By reviewing your scheme and understanding the advantages and disadvantages of the different types on offer, companies can make cost savings, improve compliance and enhance employees retirement savings.

Base Employer Contributions

5% employer contribution remains the most popular amount for 2026, with 26.2% offering it. However, statutory comes in a close second at 22.4%.

Seeing as 60% of employees want their employer to pay more into their pension, and 84% of jobseekers say it is an important factor when choosing an employer, those still only providing the minimum may be putting themselves at risk of losing talent to competitors who have embraced more attractive pension offerings.

It’s important to review and consider your employer contributions, as Workplace Pensions are a top priority for employees. We found enhanced pension contributions to be among employees’ most-wanted benefits – 60% want their employer to contribute more, and 58% would even take a bigger pension over other benefits.

Even increasing contributions by just 1% can make your staff feel more valued and make a big difference to their retirement fund. This small adjustment can also make your company more attractive to new talent, showing prospective employees that you’re invested in their long-term financial wellbeing, which is a key factor in today’s job market.

Matching Contributions

Similar to last year, just under 80% of employers offer some form of matching pension contributions.

This is positive to see, especially as nearly half of employees said they’d pay more into their pension if employers matched it. Offering some level of matching contribution not only helps to retain current employees, but also positions your business as an attractive option for top talent who value strong retirement support.

Salary Exchange Method

The number of employers offering some form of Salary Exchange Workplace Pension contributions has remained fairly consistent with 2025, at 58.4%.

However, despite the savings to be made, almost 40% of employers aren’t taking advantage of it. This is a missed opportunity to offset rising employment costs, as salary sacrifice pensions offer significant tax savings for both employers and employees.

It’s an even split between Salary Sacrifice methods: 29.2% are utilising Simple Salary Sacrifice, a method that takes any NI savings an employee makes and puts them back into their net pay, increasing what they take home. This additional pay can make a big difference, especially as employees’ reported money worries as the second biggest cause of stress. 29.2% are using the SMART method, which sees the NI savings added to an employee’s pension contributions rather than net pay.

To make sure your Workplace Pension is set up in the most effective way for your business and staff, it’s important to speak with an employee benefits consultant. Call 02074425880 or submit an enquiry to set up a free consultation with one of our specialists.

Governance

Even though employers are required to follow laws and regulations for their pension schemes, 20.8% admitted they still don’t have any form of governance in place – a figure that has remained similar to that of last year’s respondents (20%). While this highlights a gap in oversight, the majority of employers are taking action, with regular meetings with external pension specialists being the most common governance method. As an employer, it’s essential to be proactive in reviewing your pension scheme to ensure it remains compliant, effective, and well-managed.

Regular check-ins with pension specialists or forming a governance committee can help you stay ahead of changes and ensure your scheme is not only running smoothly but also delivering the best outcomes for your employees. Taking these steps will not only protect your business but also demonstrate your commitment to supporting your workforce’s financial future.

Scheme Reviews

It’s vital for employers to regularly review their Workplace Pension scheme – not just to meet legal obligations, but to ensure they’re offering a competitive and effective plan that truly benefits their employees. The Pensions Regulator recommends conducting an annual review to keep your scheme compliant and up-to-date, and we’re pleased to see this is the most popular option for this year, with 35.9% of employers conducting an annual review.

While we’re pleased to see this, more than half of businesses (54.3%) are not reviewing their pensions frequently enough, and 6.1% admit to never reviewing their company scheme.

Regular reviews aren’t just for compliance, but to allow employers to assess whether the investment strategy is still appropriate for their workforce and delivering the best possible returns.

Communication is key when it comes to Workplace Pensions. You’re legally obliged to provide certain information, but it’s important to go one step further. Ensuring your staff clearly understand their scheme can help them to value it as a benefit – you’d be surprised at the impact it can have.

Adam Gibbs
Senior Workplace Pensions Specialist

Employee Benefits Management

Managing employee benefits is often seen as an administrative task, but in reality, it’s far more complex and plays a much bigger role in how businesses perform.

For many organisations, managing benefits plays a key role in everything from controlling costs and maintaining accurate data to shaping the employee experience and the overall effectiveness of their rewards strategy. Despite this, it’s often managed through a mix of manual processes, disconnected systems, and multiple providers.

New for 2026, we asked HR and finance professionals how benefits are handled day-to-day. The results point to a clear operational challenge, highlighting both the time and complexity involved, as well as the risks that come with manual administration.

Time Spent on Internal Management

The majority (43.3%) of respondents spend between 6-20 hours a month on activities such as renewals, enrolments, liaising with providers, and handling employee queries. 42% spend 5 hours or less, while 8.8% spend more than 21 hours a month, and almost 6% have lost track.

It seems for many organisations, employee benefits administration represents a recurring and potentially resource-intensive monthly commitment.

Methods Used

larmingly, over a quarter (25.7%) of this year’s respondents are using either spreadsheets or manual paperwork to track their employee benefits admin. Static documents and physical papers pave the way for errors and oversights, which we’ll explore later in this section.

Although the majority (26.2%) are using a blend of methods to manage benefits admin, it’s good to see 22.5% of employers embracing employee benefits platforms. Keeping on top of benefits involves a lot of administration which can be time consuming. And although platforms come at a cost, they can significantly reduce the amount of time spent on admin. Platforms such as My.Drewberry allow you to bring all your benefits together and manage them centrally.

They allow you to easily update and amend employee selections and eligibility, stay on top of tasks with automated notifications and provide employees with a holistic view of their rewards package.

A good platform will not only give you time and resource back, it will make it easier to promote the benefits you offer. If employees clearly understand what benefits are available and how to use them, the more likely they are to be engaged. The more engaged employees are, the happier and more productive they are likely to be.

Challenges Faced

We asked employers about the biggest challenges they faced when it comes to managing their employee benefits package. The biggest challenge was data accuracy and avoiding errors, which over a third (33.5%) of respondents deal with. This was followed by managing multiple providers (30.4%), controlling costs (27.3%), keeping up with regulations (26.2%), and combatting low employee engagement (22.5%).

These challenges can be tackled with the right support in place. Combining specialist consultancy with modern benefits technology can significantly reduce administrative burden while improving accuracy and employee engagement.

Changes to Joiners and Leavers

Despite the majority of employers relying on manual processes to manage employee benefits, an overwhelming 95.9% are confident that benefit changes for joiners, leavers, and life events are actioned accurately and on time. That’s a resoundingly positive sentiment, with 52.8% feeling “somewhat” confident, and 43.1% feeling “very” confident.

Employee Understanding

We again see a pattern of confidence in employers, with 91.7% feeling that the benefits they offer are understood by employees. It’s an interesting contrast to our separate survey of UK employees², where only 36% of respondents claimed to fully understand their current benefits package. Could this be a false confidence on the part of employers?

Benefits understanding all comes down to communication, and with email and handbooks being this year’s most popular form of communication, it’s a wonder whether this is being seen as a tickbox exercise by employees, rather than an employee engagement strategy.

Number of Providers

Juggling different providers is a headache for People teams, and it’s no surprise that it was listed as the second most common challenge faced. The majority (61.7%) of respondents are simultaneously managing between 3-7 different providers each year.

This is where employee benefits platforms really shine. They provide a centralised location for managing your employee benefits package – so instead of dealing with multiple systems or paperwork, everything is streamlined into one digital hub. They reduce the headache of managing endless spreadsheets and benefit providers, and save businesses hours of time when it comes to benefits administration. Clever technology allows for task driven automation, ensuring nothing gets missed and providers are always kept up to date.

Data Errors

The data highlights the hidden operational risk associated with manual benefits administration. While 45.2% of respondents report no errors in the past 12 months, nearly the same proportion (46.6%) have experienced at least one error due to manual processes – with 6.7% encountering multiple issues.

This means that organisations relying on manual systems are almost as likely to experience data inaccuracies as they are to remain error-free. Given the sensitive nature of employee benefits data and the potential consequences for payroll, provider relationships, and employee trust, even “one or two” errors can carry disproportionate impact. With only 3.7% reporting that they no longer rely on manual processes, the findings suggest significant scope for automation to reduce risk, improve accuracy, and strengthen confidence in benefits governance.

Value For Money

Perceptions of value for money are broadly positive. While nearly eight in ten respondents (79.4%) believe they receive either very good or somewhat good value from their employee benefits spend, enthusiasm appears measured rather than emphatic.

Just 26.5% describe the value as “very good,” with the majority (52.9%) opting for the more cautious “somewhat good.” Meanwhile, almost one in five (16.6%) feel neutral, and a small 3.9% perceive poor value.

It seems there’s confidence in benefits investment, but also room to strengthen impact and visibility. For many organisations, the challenge may not be reducing spend, but ensuring benefits are clearly aligned to workforce needs and demonstrably delivering return.

Benchmarking Against Competitors

The findings reveal a striking divide in how strategically organisations approach their benefits offering. Just under half (49.5%) actively benchmark their benefits against competitors, while almost the same proportion (46.8%) do not. This near 50–50 split suggests that many organisations may be making significant investment decisions without clear visibility of how their offering compares in the talent market.

Organisations that take a more market-informed approach may be better positioned to optimise spend, differentiate effectively, and respond to evolving workforce expectations. Without this insight, businesses risk falling behind, offering packages that may not fully meet employee expectations or align with what competitors are providing.

A Total Reward Strategy is one way of ensuring benefits work hard for your business and employees. By outlining a clear plan of action, it helps make your benefits more effective in terms of employee satisfaction and pushing forward company goals.

Joanne Jones
Employee Benefits Consultant

Putting Insights Into Action

So, what does all of this mean in practice?

Many organisations are already investing in employee benefits, but not always getting the full value from that investment. What you choose to offer is the first step, but the challenge comes from how those benefits are designed, communicated, and managed day-to-day.

The organisations seeing the greatest impact tend to take a more deliberate, strategic approach. They:

• Regularly benchmark their offering against the market
• Align benefits with what their employees actually value
• Make benefits easy to understand and engage with
• Simplify how they’re managed behind the scenes
• Use data to guide decisions and improvements.

When these elements come together, benefits start to work harder, shifting from a business cost to something that genuinely supports performance, retention, and long-term growth.

Need Help?

Benchmarking is crucial for keeping competitive, but it’s not a quick task. This is where we can help. Our benchmarking service provides clear insights into how your benefits compare to competitors, helping you stay ahead of industry trends and understand exactly what your employees value. We uncover what’s happening in your sector and pinpoint what matters most to your team.

Our specialists assist you in managing your employees’ benefits so that they work for you rather than against you: working within your budget to achieve the best possible solutions for both now and for the future.

We’ll look at your current offering, the wider industry, and survey your people to ensure you’re offering a benefits package that meets their needs and stands out in the market.

Our specialists do this day-in, day-out, offering first class service when you need it most. Call 02074425880 or submit an enquiry to set up a free consultation with one of our specialists.

Why Speak to Us?

Employee benefits can be a headache. But our specialists do this day-in, day-out, offering first class service when you need it most. Here’s why you should talk to us:

• Award-winning independent employee benefits consultants, working with leading UK insurers and benefit providers
• Assigned specialist on hand to help – every step of the way
• 4119 and growing independent client reviews rating us at 4.92 / 5
• Authorised and regulated by the Financial Conduct Authority. Find us on the financial services register
• Claims support when you need it most.

Sources

• ¹Oxford University Saïd Business School and BT: https://www.ox.ac.uk/news/2019-10-24-happy-workers-are-13-more-productive
• ²Drewberry 2025 Employee Benefits and Workplace Satisfaction Survey: https://www.drewberryinsurance.co.uk/knowledge/research/employee-benefits-survey-2025
• ³Drewberry 2025 Workplace Pensions Survey: https://www.drewberryinsurance.co.uk/knowledge/research/workplace-pension-survey-uk-2025