How benefits are moving the needle on organizational success
20.05.25
Benefits are no longer a checkbox. They’re a strategic advantage.
Benefits have become the primary way for employers to deliver an exceptional experience and hit their key workforce objectives.
These prime targets are to build a strong, inclusive culture, to make a tangible difference to employee wellbeing, drive employee engagement and productivity, and create a sticky employee value proposition (EVP).
Seven out of ten (71%) global HR and reward professionals plan to increase their benefits investment in the next 12 months, recognising their role in improving employee experience and delivering business outcomes.
Yet, their true impact of benefits is rarely measured and reported on, beyond clicks.
1. Increasing employee engagement
A well-designed benefits strategy doesn’t just support employees, it actively engages them.
But driving benefits engagement isn’t just about getting people to login and make selections annual enrolment.
More than a third of global HR and reward leaders say their top goal is to show the value of benefits year-round.
Companies that keep benefits front and centre – through ongoing communications, personalised recommendations, and seamless digital platforms – see significantly higher employee engagement levels and employee satisfaction.
As well as offering benefits that align with employee needs, the technology you use to deliver them has a crucial role to play in what they think of your programme.
Top tip: Linking benefits to broader initiatives like wellbeing, sustainability, and diversity can help maintain engagement throughout the year – and drive the employee engagement you’re looking for.
2. Strengthening employee loyalty
Retention is a major challenge in today’s job market, and benefits are playing a crucial role in keeping employees committed.
Global employers rank retention as the number one reason for offering benefits.
Although there are myriad factors that influence employee loyalty – worklow, workplace culture and economic factors to name a few – the impact of employee benefits on how employees feel about your organisation shouldn’t be underestimated.
Companies that effectively communicate their benefits offering see higher employee satisfaction and reduced turnover.
Total Reward Statements (TRS), flexible benefits tailored to each employee’s individual needs, and initiatives that align with company culture all contribute to a sticky employee value proposition (EVP).
Top tip: Some organisations are using employee advocates or ‘influencers’ to champion benefits programmes and raise awareness among colleagues. This is a powerful way to get employees excited about benefits and further foster employee loyalty.
3. Attracting top talent
The right benefits package doesn’t just retain employees – it attracts them, too.
More than seven out of ten (76%) global employees say a strong benefits package would influence their decision to join a company, rising to 84% for in-demand tech professionals.
To stand out in a competitive talent market, forward-thinking organisations are making benefits a key part of their recruitment strategy.
Some are even providing prospective employees with a preview of their TRS before they join, showcasing the full value of their offering.
Top tip: Pre-hire microsites are becoming a popular way to communicate the benefits package to candidates, creating a seamless and personalised recruitment experience.
4. Boosting productivity and performance
The link between wellbeing and productivity is undeniable.
Employees who feel supported in their physical, mental, and financial wellbeing are more engaged, resilient, and high-performing.
Employees themselves point to the importance of benefits that support their wellbeing – 92% of employees say it’s important their benefits support their mental health and emotional wellbeing.
Companies investing in benefits such as private healthcare, financial wellbeing tools, and flexible working are seeing tangible results, from reduced absenteeism to increased output and innovation.
Top tip: Providing benefits like private medical or health cash plans can be vital in reducing employee absence and sickness, and wellbeing-related benefits and resources can also help prevent employees from reaching a crisis point.
5. Aligning with sustainability goals
Benefits are increasingly seen by both employers and employees as a way for people to live the organisation’s values and support ESG goals.
Sustainability is even a core factor in employer brand and talent attraction; 74% of employees say a company’s approach to sustainability influences their decision to work there.
Businesses are responding by integrating sustainability into their benefits strategy, offering initiatives such as:
- Electric vehicle salary sacrifice schemes
- Green pension funds
- Carbon offsetting initiatives
- Payroll giving to environmental charities
- Tree planting schemes
Top tip: Employees want to see the impact of their choices. Forward-thinking employers are using benefits platforms to track and showcase the environmental contributions of their workforce through the benefits they select, such as CO₂ savings to trees planted.
Benefits drive business success
The impact of benefits extends beyond employee satisfaction – they directly contribute to profitability, retention, and business growth.
Studies show that companies with well-structured benefits programmes are more likely to see revenue growth, improved customer satisfaction, and long-term resilience.
The challenge now is ensuring they are communicated effectively and aligned with broader business objectives.
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