What benefits do employees expect in 2025?

A high-quality employee benefits package helps you attract talented staff, leads to higher employee retention, and helps keep employees engaged, which can positively impact business growth. Your employee benefits strategy can help your team feel supported and create a positive workplace culture.

Ensuring staff feel listened to, and part of something bigger than themselves is key to employee satisfaction and engagement, particularly among Gen Z and other younger employees. Employee engagement plays a vital role in various business metrics, including sales, customer satisfaction, employee retention and sickness absence.

Some employee benefits are a legal requirement, but beyond that, the workplace benefits package you create is up to you. Meeting employee expectations for their benefits package supports staff retention and can make you an employer of choice. Understanding what your employees want lets you use your budget wisely while also considering which benefits align with your business values and help you achieve your goals.

UK employees increasingly look for benefits that support their well-being and that create an inclusive and positive workplace culture. The new Employment Rights Bill establishes an expectation of flexible working, which is mirrored by a trend where employees want a flexible benefits package that they can adjust to suit their circumstances.

Here's what the latest research says about the benefits employees want in 2025 and how you could include them in your workplace benefits package.

Personalised benefits

In a recent survey, 50% of employees said they'd consider a lower salary if the role offered high-quality benefits tailored to their needs. That could be a great help if your business is feeling the financial strain of increased employers' National Insurance payments. Tailored benefits offer various options and let employees decide which perks suit their circumstances. We'll consider ways your business can provide access to personalised benefits shortly. However, childcare support will be highly valuable to parents with young children but irrelevant to others. Equally, some team members may appreciate the structure of a 9-5 working day, while others need flexible hours that can change according to their other commitments.

How can you tailor employee benefits to individual team members?

The simplest way to offer personalised benefits is to include voluntary perks that employees can opt into. We've mentioned help with childcare costs and flexible working, but other benefits could use salary sacrifice schemes or loans to help employees save money on transport costs. Some benefits are inherently flexible, such as health insurance, where your team can access support and treatment according to need. You can also offer health insurance as a voluntary benefit. Usually, the employer pays health insurance premiums to cover staff, but you can also invite employees to join and pay the premiums themselves.

Some compulsory benefits offer employee-led personalisation. A workplace pension has minimum payment requirements, but staff can contribute more to boost their retirement savings. You can also offer contribution matching.

Provided your business complies with the relevant employment and tax laws, there are many ways to adjust your benefits to suit individual employee expectations.

Hybrid working

There's been increased focus on flexible working arrangements and hybrid working as employers have asked their staff to return to the office. Workers' preferences appear to be split between a desire for hybrid working, fully remote or fully office-based. In a recent survey, a hybrid approach came out on top, although 36% of respondents said they felt more productive working from home due to distractions in the office. Many employers have also found that hybrid working increased productivity and employee well-being.

Hybrid working benefits your business by giving employees the best of both worlds. They can spend time at home focusing on their work away from office distractions and managing their personal commitments. Time in the office lets your employees collaborate on team projects, build positive workplace relationships and provide guidance and support to new or younger employees.

Combining hybrid working with positive workplace relationships

As we've mentioned, time in the office helps build relationships and can underpin a positive culture. Finding the right balance between home and office-based work requires careful management and discussion to meet employees' needs and support business goals.

It's a good idea to consider several ways to support team relationships. Time in the office allows for in-person collaboration and training but also gives employees time for informal, 'water-cooler' conversations. During remote working, use technology to keep in touch. Many fully remote businesses schedule short daily catch-ups where staff can share their progress and ask for support.

Team-building days and social events provide time away from the office where staff can get to know each other and learn new skills. Events could include away days for the whole company, social and training events for new staff or leadership development training for employees seeking management roles. They can also allow you to share your company values and culture.

A better work-life balance

A good work-life balance looks different to individual employees, meaning tailored benefits can help your team design a work schedule that meets their needs. Flexible hours or a four-day week can work alongside hybrid working by letting employees adjust their working hours depending on where they're based that day.

The CIPD's annual Good Work Index Report 2025 found that employees prefer formal flexible working to informal flexibility, but these weren't widely available. Formal arrangements offer certainty and clear boundaries between an employee's work and family commitments, rather than informal flexible working, which employees may struggle to manage in practice.

A generous annual leave allowance remains a highly valued benefit and supports work-life balance by giving your team time away from the office.

Well-being benefits

Benefits that support workplace well-being help your business remain competitive by showing your employees that you care for their welfare in and out of the office. It's wise to take a holistic approach to well-being and provide benefits supporting employees' physical, mental, and financial well-being. We'll examine financial well-being in detail shortly. First, let's consider the benefits that support employees' mental and physical health.

Support to live a healthier lifestyle

A healthy lifestyle has physical and mental health benefits, and your employee benefits can provide various forms of support. Well-being initiatives and wellness programmes offer education on health topics and help employees take practical steps to make changes where needed. Programmes can include free activities, taster sessions, workshops and demonstrations.

If you invest in employee health insurance, many providers offer discounted gym memberships, other well-being rewards, and self-help resources to empower employees to improve their health. They typically also provide health assessments with goal setting and ongoing support.

Private health insurance

As we've mentioned, employee health insurance provides well-being benefits, health assessments and discounts. Health insurance remains a valued benefit in itself, giving fast access to medical treatment and services, including 24/7 virtual GP appointments and direct access to counselling and physiotherapy, depending on your chosen provider.

You can also give your employees the option to extend their health insurance coverage to their families by paying the premium themselves. This approach lets employees tailor their coverage to their circumstances and can make buying health insurance coverage for their family more affordable.

Mental health support

Employee health insurance typically provides mental health support via counselling, with additional treatment sessions and psychiatric treatment, if you pay a higher premium to extend your coverage. Insurance providers' discount and reward programmes also give employees access to mindfulness apps and other mental health resources.

An employee assistance programme (EAP) provides confidential counselling and telephone helplines with guidance to help employees find the proper support for their health, legal and financial worries. You can add an EAP to your health insurance or choose a standalone service.

However, while health insurance offers various services, you can offer additional support by letting staff take mental health days and normalising conversations about mental well-being in the workplace.

A well-being allowance

A well-being allowance supports staff well-being by letting employees decide how to care for themselves, making it a highly personalised benefit. Allocate each staff member a budget to spend on well-being, however they see fit. Employees could seek counselling or advice on personal challenges or book a spa day for a complete break.

Offering an allowance demonstrates a high level of trust in your employees' judgement, which can boost morale and increase employee engagement.

Financial well-being

The cost of living crisis has made financial well-being a key concern for UK employees, meaning benefits that help them achieve financial security are highly valuable. Appropriate use of salary sacrifice schemes can help employees save money on commuting costs and childcare expenses while investing in a pension helps them save for the future. Education and access to financial advice enable your team to create stable financial foundations and make informed decisions.

Financial well-being has mental health benefits, as staff can avoid financial stress and seek guidance on any money worries.

Financial education

Financial education can come in various forms and cover topics suitable for employees at different life stages. Offering access to workplace workshops and training sessions lets staff choose the training that best meets their needs. Younger workers who may be financially independent for the first time could benefit from advice on financial literacy, including creating a budget and tax-efficient ways to save. Training could also include sessions on different savings and investment options or retirement planning. Depending on your expertise, ask experienced colleagues to run sessions or invite external providers, such as your pension provider. It's also a good idea to offer learning resources so that staff can explore financial subjects according to their interests.

In some circumstances, staff will need specialist financial advice. You can help by providing resources with guidance on the benefits of seeking specialist help, choosing a suitable professional or links to charities and other organisations supporting financial well-being.

Money-saving benefits

We've mentioned that salary sacrifice can help employees opt into benefits that help lower their childcare costs or travel expenses and pay less tax. Your business can sign up to offer the Workplace Nursery Benefit by partnering with a nursery and paying a monthly or annual fee. You can also include information about tax-free childcare and the Holiday Activities and Food programme (HAF), which parents can sign up for if they meet the eligibility criteria.

Season ticket loans can help your team reduce their travel expenses by letting them pay for an annual season ticket upfront. Depending on the number of journeys an employee takes, a season ticket typically costs less per journey than individual tickets. A loan lets them spread the repayments, which can help with budgeting. They can also use salary sacrifice to pay for a bicycle or an ultra-low-emission vehicle in instalments. These have the added benefit of attracting workers looking for an eco-conscious employer.

You can also help your team save money by offering employee discounts. If you've invested in life insurance to provide death-in-service benefits or health insurance, most providers offer member discounts and rewards as an added benefit.

Retirement planning

Your financial education programme can include information about retirement planning and guidance on seeking specialist advice. However, you can also contribute to your employees' retirement funds by offering pension contribution matching. Employees can specify what percentage of their salary they want to pay into their pension fund, tailoring the benefit to their needs. With pension contribution matching, the employer pays a sum equivalent to the employee's contribution up to a specified percentage.

Career progression opportunities

The idea of a job for life is long gone, and keeping staff engaged is vital if you want them to stay with your business long-term. 70% of employees want an employer who offers personal and career development opportunities, making investment in staff development and training a wise choice. Helping your team upskill or learn leadership skills means your business will benefit from top talent and develop the next generation of managers. Your leadership team can create strong foundations by offering constructive feedback and praise for good work performance. This can also help you identify staff members who may be a good fit for management or supervisory roles in the future.

Providing your team with information on career development and progression opportunities within the business helps them visualise a future within your company.

In-house and external training

In-house training lets employees learn from colleagues with more experience, developing new skills and learning about your business's career development opportunities. Encouraging staff members to run seminars and workshops also lets them improve their presentation skills, which could be a valuable asset in the future.

External training provides access to specialist knowledge, expertise, and fresh perspectives and offers valuable networking opportunities. You can also use external providers to tailor their training to your business.

Work shadowing

Information on internal career progression can help current employees imagine a future with your business. Letting them experience the work environment for themselves can encourage them to explore other roles and prevent them from feeling stuck in a rut. Work shadowing and mentorship programmes let employees spend time with colleagues in another department, learning about their day-to-day tasks. Setting up a work scheme where staff can move between departments on rotation or request a secondment to another team is also worth considering.

Education loans

Suppose an employee will benefit from a formal course of study, whether a short course at a local college or university, an undergraduate degree or a postgraduate qualification. In that case, you can offer low-interest or interest-free loans to help pay their fees.

While you must pay for mandatory training, you can offer loans for professional certifications your employees want to pursue to develop their knowledge or courses related to their interests outside work. Investing in career development helps your team feel supported and valued, boosting their morale and staff retention.

At Globacare, we help businesses find the right insurance policies to support a high-quality employee benefits package that their employees will value. Contact us for advice tailored to your needs and budget.