‘Value Void’ in reward and benefits leaves employees confused and underwhelmed

Employers ramp up deployment of benefit technology and AI to meet rising employee expectations

• 90% of employers believe their benefits programs positively impact employee lives, but only 69% of employees agree.
• 62% of employees are unsure if they are making the most of the benefits available to them, and 85% say benefits need to be simpler to understand, access and change.
• 46% of employers are using benefits platforms, and 96% believe that AI will play a major role in meeting employee expectations.

London, June 26th 2025: More than three quarters (79%) of employers have increased spending on employee benefits over the past 12 months in response to rising employee expectations. Yet 62% of employees find it difficult to see the value of their benefits and are unsure if they’re making the most of what’s available.

New research from Benifex, the leading employee benefits and reward platform, highlights the emergence of a value void in benefits – where good intentions and increased investment fail to translate into real-world value for employees.

While 69% of employees say benefits are having a positive impact on their life — a promising result in itself — as many as 90% of HR leaders believe their benefits are making a meaningful difference to employee lives. It’s encouraging that so many employees are feeling the value. But the numbers also highlight a disconnect between how employers and employees view the impact of benefits. This is the value void.

The research reveals a fundamental disconnect: increased investment is being undermined by a lack of clarity, confidence and understanding across the workforce. 85% of employees feel that benefits need to be simpler to understand, access and change.

Employee expectations around benefits are skyrocketing, with 81% stating that employers should offer more cost-of-living support, and the same percentage want their benefits package to adapt as their personal circumstances change. Employees now consider benefits critical to their overall experience at work: 81% report that benefits are important when choosing an employer; and 71% say the benefits their employer offers matter more now than two years ago.

Commenting on the research, Matt Macri-Waller, Founder & CEO, Benifex, said: “It’s encouraging that two-thirds of employees feel that their benefits positively impact their lives, but this is only part of the picture. Despite the good intentions and increased investment from employers, many employees remain unclear on the value of their benefits. They’re unsure what they’re entitled to, whether they’re making the most of what’s available, or even how to access what’s on offer. This growing disconnect between employer intent and employee experience – the ‘value void’ – is having a real impact, with too many employees feeling underwhelmed, unsure, and worried they’re missing out.

“A value-based approach to benefits and rewards lets employers meet elevated employee expectations and maximize the real-world impact of every dollar spent. When benefits are understood and appreciated, they become a powerful lever to support employee wellbeing, drive performance, and differentiate your organization in a competitive market.”

In response to soaring employee expectations, employers are turning to technology. 46% now have a platform in place — a huge jump from 12 months ago, when just 14% had a platform in place. Benefits technology is seen as vital to make benefits more accessible and improve employee experience. Platforms can also streamline processes, reduce admin for HR teams, and deliver useful insights into benefits spend, engagement, and take-up.

The research highlights how organizations that have deployed a benefits platform are performing at a higher level when it comes to tracking benefits investment and impact, aligning benefits with company values, increasing engagement around benefits, and keeping pace with changing employee demands.

As well as adopting benefits platforms, increasing numbers of businesses are now deploying AI-powered solutions to support and enhance their benefits strategies. 96% of HR and Reward professionals believe AI can play a major role in helping organizations meet employees’ growing expectations. As AI technology evolves, it will provide employees with financial planning tools, personalized benefits recommendations, and smart search features that help employees find content that is most relevant to their needs.

Significantly, the vast majority (79%) of HR and Reward professionals feel more positive about AI than a year ago, and 57% state that AI is revolutionizing how they work. Within People teams, AI is saving time, delivering actionable insights, and creating new opportunities for career progression.

Matt Macri-Waller concluded: “AI is the critical tool in closing the expectation gap and helping employees to understand the value of their benefits. It will provide employees with the essential information they need, cutting through complexity and assisting them to make informed decisions and take action. And for HR and Reward teams, AI-powered tools will enable them to effectively scale benefits provision on a global scale, meet compliance requirements, and respond to evolving employee needs. AI will enable HR leaders to spend less time on the mundane and more time on the meaningful.”

The full research findings are available in the new white paper, “Propel Reward & Benefits: How organizations are moving faster and imagining more to fill the value void in employee benefits,” which is available for download here.