Key Points
- In 2024, flexible working-related perks (remote working, flexible hours and location flexibility) were consistently the most valued employee benefits.
- Employers responded by expanding hybrid and remote working arrangements, introducing compressed hours, and offering more adaptable start and finish times.
- Alongside flexibility, employees continued to value established benefits such as bonuses, paid overtime, enhanced paid time off, pensions, private medical insurance and life assurance.
- By 2026, employee priorities have shifted towards financial security, with increased employer pension contributions and unlimited paid time off jointly ranked as the most desired benefits (31% each).
- Culture Amp research indicates UK workplace stress is higher than the global average (29% in the UK v 24% globally), with 37% of UK employees saying employers do not prioritise wellbeing (v 30% globally).
- The same research highlights gender disparities, including lower reported work-life balance support (63% women v 68% men) and psychological safety (59% women v 67% men), despite strong reported line manager availability (89% globally).
Employee Benefits: Evolution From Flexibility to Financial Security
The Rise of Flexible Working (2024)
In 2024, flexibility dominated discussions around employee benefits. Workforce research on employee benefits at the time consistently showed that employees placed the greatest value on being able to control when, where and how they worked. Remote working, flexible hours and location flexibility were routinely ranked as the most desirable employee benefits, reflecting a broader shift in attitudes towards work-life balance and personal autonomy.
In response, many employers expanded hybrid and remote working arrangements as part of their employee benefits packages, introduced compressed hours, and offered greater flexibility around start and finish times. These changes were not simply about convenience; they became a central tool for recruitment and retention, enabling employees to balance professional responsibilities with caring commitments, health needs and personal priorities.
Alongside flexibility, traditional employee benefits continued to play an important role. Bonuses, paid overtime and enhanced paid time off featured prominently, supported by more established employee benefits such as private health insurance, pension contributions and life assurance. Employers increasingly complemented these with wellbeing initiatives, childcare support, professional development opportunities and transport-related benefits. Taken together, the emphasis in 2024 was on supporting employees holistically, with flexibility acting as the cornerstone of a competitive employee benefits package.
A Shift Towards Financial Security (2026)
By 2026, however, employee priorities have evolved. New research from employee benefits provider, Epassi UK, highlights that while flexible working remains an important expectation, particularly hybrid and remote working models, there has been a marked shift towards financial security as a defining concern.
The research has found that increased employer pension contributions have emerged as the joint most sought-after employee benefit, alongside unlimited paid time off, each prioritised by 31% of employees surveyed. The focus on pensions is especially pronounced among older workers, with a significant proportion of those aged over 55 identifying enhanced pension contributions as their top priority.
This growing emphasis on long-term financial stability appears closely linked to wider economic pressures. Rising living costs, uncertainty around future retirement adequacy and announced changes to pension tax relief have all contributed to employees reassessing what they value most from their employers. Private medical insurance has also grown in importance, reflecting ongoing concerns about access to healthcare and the strain on public services.
At the same time, employees continue to favour benefits that offer immediate financial relief or practical support, including wellbeing allowances, retail discounts, contributions towards home energy costs and flexible leave arrangements. Flexibility has not disappeared; rather, it now sits alongside financial security as part of a more balanced set of expectations.
Why This Shift Matters
The changing landscape in relation to employee benefits reflects the realities facing both workers and employers. With many organisations constrained in their ability to raise salaries, employee benefits have become an increasingly important lever for maintaining engagement, morale and retention. Well-designed benefits packages allow employers to provide meaningful support without relying solely on headline pay increases.
Technology has also played a role. Flexible benefits platforms now allow employers to tailor offerings more closely to individual needs and to communicate benefits more effectively. This improved visibility helps ensure that benefits are not only offered but understood and valued, increasing return on investment and employee satisfaction.
Conclusion
The progression from flexibility-led benefits in 2024 to a stronger focus on financial security in 2026 illustrates how employee priorities respond to broader economic and social conditions. Employers that adapt to these shifts, by combining flexibility with tangible financial support, are more likely to attract and retain talent in an increasingly competitive market. Ultimately, the most effective employee benefits strategies are those that evolve alongside the workforce they are designed to support, balancing immediate wellbeing with long-term security.
Workplace Stress Remains Elevated in the UK, New Research Finds
Survey
New research conducted by Culture Amp suggests that workplace stress and wellbeing remain significant concerns for UK employees. The research shows that 29% of UK workers report high levels of stress at work, compared with a global average of 24%, indicating that stress levels in the UK are notably higher than international benchmarks. In addition, 37% of UK employees say their employer does not prioritise wellbeing, compared with 30% globally.
Gender Differences
The findings also highlight clear gender disparities. Only 63% of women believe their employer supports a healthy work-life balance, compared with 68% of men, and just 59% of women feel safe taking risks at work, compared with 67% of men.
Line Managers
Despite these challenges, support from line managers remains strong, with 89% of employees globally reporting that their manager is available when needed.
Employers: What This Means
- Benefits strategies should reflect the shift from “flexibility-first” to a stronger focus on financial security, particularly pensions and healthcare-related benefits.
- Workforce demographics matter: enhanced pension contributions appear especially important for older employees and may influence retention of experienced staff.
- Where pay awards are constrained, benefits can act as an alternative lever to support recruitment, retention and employee engagement.
- Wellbeing initiatives should be supported by practical measures addressing workload, role design and team expectations, not just policy statements.
- Given reported gender gaps in work-life balance and psychological safety, employers may wish to review whether working practices and management behaviours are operating consistently across groups.
- Improved benefits communication and enrolment processes (including through benefits platforms) can increase uptake and ensure employees understand what is available.
