Why benefits are the new deal-breaker in workplaces
16.12.25
The research has spoken: benefits have never mattered more. Employees aren’t just showing up for a pay check anymore; they’re looking for employers to support every aspect of their financial, physical, and mental wellbeing.
Whatever the industry, employers know benefits are the number one route to enhance employee experience and wellbeing, and to build a healthy, engaged and productive workforce.
Employers are responding
And businesses aren’t just talking a good game around benefits. They’re putting their money where their mouths are:
- 79% of UK employers have increased spending on employee benefits over the last 12 months.
- 81% have ramped up investment in employee wellbeing.
- For global employers, those numbers climb even higher: 81% on benefits and 86% on wellbeing.
This shift isn’t just about more generous packages – it reflects a bigger change in how companies approach their relationship with employees. Benefits have become the defining part of the employee value proposition.
Employees are paying attention
That’s definitely how employees see it. They’re paying way more attention to what current and prospective employers are offering beyond salary, and it’s influencing their decisions:
- 81% say benefits and rewards are important when choosing a new employer.
- 85% say they matter when deciding whether to stay in a job.
Whatever their age or location, employees are weighing benefits heavily when they think about their future.
Regional and sector differences
Employees in S.E. Asia, India, and the U.S. are particularly focused on benefits – no doubt driven in part by the importance of health insurance in these markets.
In technology, where competition for talent is fierce, employees put more weight on benefits than any other sector – making them a defining differentiator.
The bottom line
Benefits are now a make-or-break factor in the workplace. They shape how employees feel about their employer, how motivated they are, and whether they stay. For HR and Reward leaders, the challenge is clear: keep pace with rising expectations, or risk losing the talent race.
Download Benifex’s ‘Big Benefits Report’ report for your guide on how forward-thinking HR and Reward teams are turning benefits into a competitive advantage.
