What Employees Really Want from Their Benefits: New Insights for HR Leaders

Employee retention, engagement and benefits packages have become a critical differentiator for organisations seeking to attract and retain top talent. Recent research from Benifex’s Propel Reward and Benefits report has shed new light on what employees truly value in their benefits packages, revealing both encouraging trends and concerning gaps.

Employees dressed for work, seeking benefits they value most.

The Benefits Dilemma

The research, which draws on over 3,000 interviews with employers and employees globally, highlights a fascinating dilemma, while 69% of employees report that their benefits are positively impacting their lives, a significant 62% still struggle to see the full value of what’s being offered to them.

This disconnect presents both a challenge and an opportunity for HR professionals and business leaders. While companies are investing more in benefits, the return on that investment may be diminished if employees don’t fully appreciate or understand what they’re receiving.

What Employees Actually Want

Today’s workforce is seeking more than just competitive salaries. The research indicates that employees are increasingly valuing:

• Flexibility and choice – Benefits that can be tailored to individual needs and life stages
• Wellbeing support – Mental health resources and work-life balance initiatives
• Financial wellness – Programs that help with long-term financial security
• Clear communication – Simple, accessible information about available benefits
• Technology integration – Easy-to-use platforms for accessing and managing benefits

Closing the Value Perception Gap

For small and medium enterprises, addressing this perception gap doesn’t necessarily require larger budgets, but rather smarter approaches to benefits design and communication:

• Regular benefits education – Ongoing communication about available benefits and their value
• Personalised messaging – Targeting information to employees based on their specific needs
• Value calculators – Tools that help employees quantify the monetary value of their benefits
• Regular feedback loops – Mechanisms to understand what employees value most

The Role of AI in HR Benefits Management

The report also explores the role of artificial intelligence in HR processes, highlighting how leading organisations are leveraging technology to create more personalised, efficient benefits experiences. Rather than seeing AI as a threat, forward-thinking companies are using it to enhance human capabilities in benefits administration and communication.

Moving Forward  

For businesses looking to optimise their benefits strategy, the research suggests focusing on:

• Measuring impact – Going beyond participation rates to assess actual value and outcomes
• Aligning with organisational goals – Ensuring benefits support broader business objectives
• Embracing flexibility – Creating adaptable frameworks that can evolve with employee needs
• Simplifying the experience – Making benefits easy to understand and access

Conclusion

As competition for talent continues to intensify, organisations that can effectively communicate the value of their benefits packages while tailoring them to meet evolving employee needs will have a significant advantage.

The key lies not just in what benefits are offered, but in how they’re presented, explained, and integrated into the overall employee experience.

For more detailed insights, the complete Benifex Propel Reward and Benefits report is available for download, offering HR professionals a comprehensive look at how leading organisations are reimagining the their approach to employee benefits in today’s workplace.