The simple answer is YES!
People are working longer and given the nation is facing a cost-of-living crisis, it becomes clear why retirement savings have become the most valued benefit for both the UK’s Gen X and Baby Boomer generations.
Employee benefits are a key part of the employee compensation package and can be a deciding factor when candidates are considering multiple job offers. They can also help improve employee productivity, engagement and retention.
A recent study by the Society for Human Resource Management found that 90% of survey respondents said private healthcare is an extremely or very important employee benefit. 83% say flexible work and leave time are extremely or very important. This should be of no surprise given the long waiting lists for treatment on the NHS.
AON has recently published their ‘Employee Sentiment Survey’ that provides excellent insight into what is really valuable to their employees.
There are many factors that give certain benefits the edge over others, but as a general rule, financial security, flexibility, and support for their health and well-being stand out. Specifically, benefits like pension plans, private medical insurance, and paid time off (PTO) are highly sought after. Flexible working arrangements are also a top priority for many, especially those seeking better work-life balance.
The flip of the coin is whether high salaries compensate for a good benefits package depends on your personal situation, values, and financial goals.
It could be argued a high attractive salary provides
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- More cash in hand immediately.
- Greater flexibility to choose your own insurance, retirement investments, etc.
- Potential for higher borrowing power (loans, mortgages).
However, there are lifestyle considerations.
Risk = If you’re financially savvy and prefer managing your own investments and insurance, a high salary might suit you better.
Stability & Security = If you value predictability (e.g., covered healthcare, attractive annual leave) a robust benefits package may be more important.
Family commitments = If you have dependents, benefits like healthcare, childcare assistance, or parental leave can outweigh a salary bump.
Summary – We all recognise there is a notable increase in the number of UK employees actively seeking work in 2025 and therefore attractive benefits packages may not be viable for all businesses. This trend is primarily driven by a combination of economic uncertainties, cautious hiring practices, and rising redundancies across various sectors.
Sadly, the UK labour market has seen a rise in redundancies, contributing to a growing pool of job seekers. The KPMG and REC UK Report on Jobs indicates that both permanent and temporary placements have fallen, with businesses remaining cautious about hiring due to ongoing economic uncertainty and rising employment costs. For that reason, there is no disputing attractive benefits packages make a role more attractive, but the reality is many businesses cannot afford the luxury.