What benefits do employees expect in 2026?

High-quality employee benefits help you attract top talent and require regular review to help you keep pace with new trends. 62% of UK employees prioritise benefits when choosing where to work, up from 47% in 2025. While it's easy to say that UK employers should prioritise benefits to support employees, the economic reality is less straightforward. The increase in National Insurance employer contributions and the impact of the new Employment Rights Act mean that you must consider the financial impact of your investment carefully.

Getting it right could pay dividends for your business, increasing employee retention and engagement. So, how can you develop your benefits strategy to offer the right employee benefits to your team?

Research shows that your workforce will likely value a wide range of employee benefits that offer different types of support. When deciding which benefits to include, it's worth reviewing your values and considering whether your company culture demonstrates a genuine commitment to supporting employee well-being and financial security.

Here are the employee benefits that research shows employees value in 2026.

Benefits that provide financial security

It's unsurprising that, as the effects of rising costs continue to bite, employees seek benefits that support their long-term financial well-being. A salary that increases with inflation and bonuses can help employees keep pace with price rises. Investing in career growth also encourages staff to achieve their full potential.

There are other ways to provide financial support in the future and in times of hardship. In addition to the benefits discussed below, consider offering hardship loans to help employees cover sudden expenses, such as a boiler replacement or car repairs. This isn't a long-term solution for workers struggling to make ends meet, but it can help them spread the cost of unexpected bills.

Pension contributions

1 in 3 employees now list their pension as a top priority, rising to 40% among those aged 55 or older. Pension contribution matching can help you stand out, even amongst younger employees. A workplace pension is a legal requirement, but you can enhance the benefit by offering pension contribution matching. Employees must pay a minimum of 5% of their earnings into their pension, while the employer must contribute at least 3%. You can offer to match employees' contributions up to a set percentage. It's wise to discuss the financial impact of your offer with your accountant. If an employee contributes the minimum 5%, matching this will still boost their retirement fund. However, it could encourage them to increase their payment, knowing they'll receive more support in return.

Death in service benefits

A death in service payment benefits employees' families if they die during their employment. A group life insurance policy pays a lump sum to an employee's nominated beneficiary. They can use this money however they wish, but it can help with funeral expenses or day-to-day living costs.

The lump sum is based on a multiple of an employee's usual salary. It gives employees peace of mind knowing their loved ones will be provided for should the worst happen.

Financial support during an absence

A lengthy sickness absence can cause financial stress as employees struggle to pay their bills. If they're already facing financial worries, a significant illness or injury can make matters worse. Statutory sick pay provides £123.25 per week for up to 28 weeks, which is less than the national minimum wage. At the same time, your business may struggle to pay more during a sickness absence, especially if you must fund temporary cover for their duties. Group income protection insurance can pay a percentage of their usual wage, and you only pay the premium rather than the full cost of their salary.

You can set the percentage the policy pays, and how long it will pay out for. Policies typically cover up to 2 years. You can also set the deferred period, which is the length of absence before the policy starts paying out.

Employee health insurance

Health insurance has been a highly valued employee benefit for some time. It provides quick access to treatment, meaning shorter sickness-related absences, which is great news for your employees and your business. Health insurance also provides a range of well-being support services. These include health assessments with support to create a healthier lifestyle, virtual GP appointments and discounts and rewards. It means a health insurance policy can provide relevant benefits to employees at different life stages.

CIPD research found that employees also value health insurance and well-being benefits for their family members. Consider offering this as standard, or as a voluntary scheme where staff can pay the premiums to add their spouse or children.

Flexible working arrangements

Flexible working arrangements let your employees adjust their working hours, location, or both to suit their needs. They can help working parents reduce their need for paid childcare by moving their start or finish time, and help staff save money on commuting costs by travelling off-peak. Flexible working can also support staff with disabilities or mental health concerns. You can introduce hybrid working, where staff spend 2-3 days in the office and the rest at home, allow full-time home working, or make a permanent adjustment to working hours.

The Employment Rights Act 2025 places an additional burden on employers to justify refusals of requests for flexible working. Any refusal must be genuinely reasonable and accompanied by a consultation with staff, and by a written explanation so employees understand the reason for the refusal.

Personalised benefits

Every employee is different, so offering personalised employee benefits lets your team choose the ones that meet their needs. A core benefits package, including a workplace pension, health insurance, and other financial support, is a great starting point, as it provides a financial safety net and benefits that staff can access as needed.

However, employees may value other benefits at different life stages and under different circumstances. When you offer flexible benefits, employees can personalise them to create a tailored package. We've mentioned flexible working, but other personalised benefits could include salary sacrifice schemes, travel loans or a well-being allowance that staff can spend as they wish.

Always seek professional advice when personalising benefits to avoid discrimination.

Mental health support

Mental health support remains a highly valued benefit, particularly among younger employees. Stress and other mental health concerns can impact an employee's well-being and their work performance. Health insurance typically provides access to 8-10 counselling sessions as standard. You can also enhance your coverage at an additional cost. Employee Assistance Programmes (EAPs) provide additional counselling sessions and access to helplines for financial or legal worries. Some business health insurance policies include an EAP as standard, or you can add one as an optional extra. Standalone EAPs are also available.

Informal mental well-being support can include creating a workplace culture that normalises discussing mental health concerns and offering peer-to-peer support. It's also worth investing in education and training to increase awareness and enable employees to recognise the signs of poor mental health.

Financial well-being support

We've mentioned benefits that provide employees with a financial safety net, such as higher pension contributions and enhanced sick pay. Some benefits also offer savings on travel or childcare and let employees opt in if required. Most health insurance policies also include a rewards programme for members offering discounts on various products and services, with some letting members earn greater rewards through healthy living.

Providing your team with financial education helps them make informed financial decisions. Training sessions and access to resources can empower employees to make good choices in their personal lives. You could run in-house sessions if you have staff with the relevant expertise, or invite third parties, such as your pension provider, to give talks and answer questions. EAPs provide telephone helplines to signpost callers to tailored financial advice. You could also offer materials and training to help employees learn how to choose a reliable adviser.

Easy access to benefits

Analysing key trends will help you understand which benefits employees value most. However, it's also worth considering how easily they can access and understand their benefits. Low engagement can sometimes signal a lack of knowledge rather than a lack of desirability. Apps and online platforms can make it easier for employees to review their benefits and access them easily. For example, most health insurers provide apps or online portals where members can check which treatments and services their coverage provides, book appointments, and claim rewards. Consider providing a benefits platform that lets your team see what you offer, what they can opt into if needed, and the process instructions. These could also link to educational resources.

It's a good idea to review your benefits regularly, and several benchmarks can also prompt a review, such as changes in your circumstances or the law. If you've read the latest research on employee benefits and are wondering whether to make changes, there are a few essential steps to take during your review.

Benchmark your benefits against research

Employee benefits experience key trends that may shift as employees' priorities change. Some benefits, such as private medical insurance, pension contribution matching, paid sick leave, and flexible hours, remain vital, even if their overall rankings change with time. Benchmarking your benefits against current research shows you whether they still meet employees' needs overall. You may find that individual benefits need some refinement; for example, you may want to adjust your contributions to the pension fund to reflect employee priorities, or increase the level of mental well-being or menopause support your private medical insurance provides.

Your benchmarking exercise may reveal benefits employees value, but which your current package doesn't provide. Before introducing new employee benefits or altering existing ones, assess whether your staff would welcome the changes and consider the financial and logistical impact on your business.

Survey your team

Employee benefits should make your employees feel supported and valued. Before introducing a new benefit based on independent research, it's worth doing some of your own. You can ask for general opinions and also ask questions to assess whether they would find a new benefit useful. Training and education sessions can offer information on new benefits that may be unfamiliar, and lead to discussions about whether to offer them to staff.

One-on-one conversations, staff forums and benefit surveys can all provide useful information about employees' personal circumstances, the perceived value of different benefits and which benefits offer valuable support.

While your existing employees' opinions are valuable, it's also important to consider which employee benefits job seekers are looking for, so you can create a package that helps you attract new talent.

Consult on changes

Once you have a clear idea of which employee benefits need to be introduced or adjusted, the next step is to consider what the reality will look like. You may decide to change your private medical insurance to enhance mental health coverage, only to discover that this significantly increases the premium. Making changes to save money, for example, increasing the excess, could discourage staff from using their health benefits and reduce their value. Consulting with your insurance broker and speaking to staff about the changes will help you make an informed decision.

The wider impact could include increased administrative tasks, a change in your management approach, or engaging with other third-party providers. Assessing manager capability and capacity among your admin and HR teams lets you identify the best approach or rethink your benefits strategy.

Ensure clear communication

Clear communication should underpin every element of your benefits strategy. It can boost engagement with underused benefits and help you understand the support your team needs. Any change process requires regular updates and clear information to help employees feel included and understand how the changes impact them.

If you introduce new employee benefits, you'll likely run several training sessions and provide information at the outset. However, your communication strategy should also provide regular reminders about your benefits offering, the support it offers and how employees can access relevant services. Using several channels to share information means employees receive it regardless of their communication preferences.

Speaking with a broker can help you choose the right insurance policies to support your employee benefits package. We can also offer advice if you need to make changes, ensuring you and your team benefit from the best coverage at the right price. Contact us for tailored advice.