Pay Isn’t Everything: The Benefits Employees Really Want In 2025

The Benefits Employees Really Want In 2025 Vs What They’re Getting

So, what benefits do employees REALLY want in 2025? To start, we asked what rewards they currently receive.

Benefits Employees Currently Receive

The core benefits offered to employees have remained broadly consistent between 2024 and 2025. Remote working, enhanced pension contributions and flexible working hours, continue to feature prominently.

Benefits Employees Want

However, the question remains: do these benefits truly align with what employees value most? To find out, we asked employees what they would most like their employer to offer. The top three included:

• Flexible working hours / flexitime (42%)
• Reduced working week (i.e. four-day week) (39%)
• Enhanced pension contributions (37%).

Bridging the Gap Between Employee Expectations and Current Benefits

There is encouraging crossover between the benefits employees currently receive and those they value most. However, they are increasingly looking for deeper flexibility, greater financial protection, and more tangible wellbeing support — areas where many current benefits packages still fall short.

Bridging these gaps will be crucial for employers who want to attract, retain, and engage top talent in 2025 and beyond.

Flexibility Matters More Than Ever

The survey reveals that flexible working arrangements and a four-day workweek remain the most desired benefits. Employees want control over their schedules to maintain a better work-life balance, yet many companies have yet to adapt to this demand.

While salary is important, employees also seek benefits that enhance their quality of life. The survey found that beyond pay, the most sought-after benefits include:

• Flexible working hours (highly valued but underprovided)
• A four-day workweek (increasingly in demand)
• Better retirement planning and pensions (critical for financial stability)
• More paid leave and wellness days.

Employers need to embrace hybrid working, flexible hours, and reduced workweeks to remain competitive in 2025. Offering these benefits will go a long way in helping you attract and retain top talent.

Enhanced Pensions Are A Priority

Enhanced pensions turned out to be the third most-wanted employee benefit, and our 2025 Workplace Pensions Survey even found that 59% of employees would prefer bigger pensions over other employee benefits!

While pensions may not be as “exciting” as other, more trendy perks, your business can turn a mandatory requirement into a much-valued benefit with a little planning.

Using the Salary Exchange method to make pension contributions is a great way to top up employee pension pots – and it saves tax for both you and your team.

Investing in your team’s long-term financial security makes them feel more stable and valued in their roles.

Richard Noble
Senior Consultant, Employee Benefits

Private Health and Dental Cover Are in Demand

Health benefits remain a priority in 2025, with 32% of employees valuing Private Health Insurance and 20% seeking Dental Cover. However, access remains limited, with only 15% receiving Health Insurance and just 6% having Dental Cover. Investing in better healthcare benefits can improve your team’s overall satisfaction and productivity.

Cost-Effective Alternatives to Private Health Insurance

Comprehensive Health Insurance isn’t always affordable, especially when adding extras. A Corporate Cash Plan offers a cost-effective alternative — from as little as £5 per employee, per month.

It allows staff to claim back part of the costs of routine healthcare treatment, such as dental checkups, physiotherapy, glasses and optician appointments etc.

Employees Are Seeking Financial Security

Financial resilience is firmly on the radar for 2025. Protection products such as Group Life Insurance or Group Income Protection provide peace of mind for employees and their families, and nearly 1 in 5 said they want Life and Critical Illness Cover.

• Group Life Insurance / Death In Service
  Pays a lump sum to an employee’s family or loved ones should they pass away during their employment with you. It provides a safety net of financial security for employees’ loved ones
• Group Income Protection
  Replaces your employee’s monthly income (up to 80% of their full pay packet) should they become unable to work due to illness or injury. It works alongside your sick pay policy, helping employees to focus on recovery and get back to work sooner
• Group Critical Illness Cover
  Pays a cash lump sum to an employee if they’re diagnosed with a serious condition such as cancer, heart attack, or stroke. Also complements your sick pay policy, relieving the burden of long term employee sickness
• Additional Benefits
  As well as the core coverage, most group insurance products offer a range of extra (often free) services with your policy. Employees can use them without needing to make a claim, as they’re designed to give support before a claim is necessary. Think Virtual GPs, counselling, probate support, and second medical opinions. See the top free services that come with employee benefits.

Cost can be a major barrier to employees getting their own personal policies, so by providing cover through your company, you’re demonstrating commitment to their care and financial wellbeing. With money worries being one of the top causes of stress, and 80% of employees admitting stress impacts their work performance, prioritising financial wellness makes business sense.

A solid benefits package is a fantastic way to keep employees engaged and motivated. It shows appreciation by offering them something meaningful – beyond their payslip. Because of this, getting it wrong doesn’t just demotivate your employees, but it impacts your business too.

Nick Nelms
Senior Consultant, Employee Benefits

The Hidden Gaps in Employee Benefits

The 2025 data paints an encouraging picture, with many employers delivering the core benefits employees value most — particularly around flexibility, pensions, and remote working. Yet beneath the surface, important gaps remain.

Health-related benefits such as Private Health Insurance, Critical Illness Cover, Life Insurance, and Dental Cover are climbing ever higher on employees’ wishlists, but access to them is still inconsistent. These aren’t just ‘nice-to-haves’ — they’re essential protections that support physical health, financial security, and overall wellbeing.

Today’s employees expect more than just flexible hours and a competitive salary. They want a benefits package that truly supports every aspect of their lives. Closing the gap between what’s offered and what employees genuinely need will be key to attracting, engaging, and retaining top talent in 2025 and beyond.

Building A Competitive Benefits Package

Employee benefits are essential for supporting your team’s wellbeing and positioning yourself as a top employer, but they need to align with what your team wants and values. Here’s how to do it:

Benchmark Your Current Offering

Benefits benchmarking might feel overwhelming, but it’s the best way to see how you stack up, and spot opportunities to beat your competitors. For an easy start, check what benefits are being mentioned on job boards, websites such as Glassdoor, and even more candid discussion forums such as Reddit. For a more in-depth review, our team of consultants can conduct a full benchmarking report, tailored to your unique business.

Communicate

One major theme to come from the survey is that employers need to up their communications game. There’s no use investing in benefits if you don’t tell anyone about them. Only 36% say they fully understand their current benefits, so even the best perks don’t matter if employees don’t know about them or how to use them.

Telling employees about their benefits just once isn’t enough, either. Regular communication is the best way to get your team engaged. Worryingly only 11% of employees say they receive regular benefits communication from their employer 😲.

You need a good plan for when, where, and how you’ll share information about your total reward package, which can feel overwhelming. That’s why we’ve created a guide to help you communicate employee benefits effectively.

Talk To Your People

Want to know the best benefits for your people? Ask them! Try sending a company-wide survey, or organising group sessions with your People team. You’ll get candid, real-time feedback on your current offering, and what you can do to improve satisfaction.

Don’t Waste Your Benefits Budget

Check the engagement rates of your benefits to see what employees are making most use of. 58% of employees said they’d actually take bigger pension contributions over other benefits. So if you’re spending money on ping pong tables and office bars, it might be worth thinking about whether your employees would prefer more meaningful rewards.

Helping You Build a Benefits Package Employees Actually Value

Pay isn’t everything. Employees are looking for benefits that improve their work-life balance, financial stability, and overall wellbeing. Companies that fail to adapt will struggle to attract and retain talent in 2025. By offering flexible work, enhanced pensions, better healthcare, and clear benefits communication, employers can build a more engaged and satisfied workforce.

Is your benefits strategy aligned with what employees really want? Call us on 02074425880 or email help@drewberry.co.uk to talk through your options.

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