A quick summary:
Did you know? Over 65% of UK job candidates now prioritise employee benefits when choosing a job. Yet, only 12% of employees are very satisfied with their current benefits, and 53% are considering leaving their jobs due to dissatisfaction.
Here’s the key takeaway: personalised benefits are no longer optional. Employees expect tailored perks that fit their life stages, priorities, and preferences. Companies offering customised benefits see 26% higher performance and save millions annually by reducing turnover.
Quick tips for customising employee benefits:
- Ask employees what they want: Use pulse surveys, focus groups, and interviews to gather feedback.
- Leverage technology: Digital platforms like Heka let employees choose benefits that suit them.
- Focus on wellbeing: Include mental health support, flexible work options, and financial wellness programmes.
- Offer flexibility: Use benefits wallets or salary sacrifice schemes to let employees allocate resources their way.
- Track and improve: Measure ROI, satisfaction, and usage rates to refine your offerings.
Customised benefits aren’t just perks - they’re a strategy to boost satisfaction, retention, and productivity.
Identifying what your workforce wants
Understanding what employees value isn’t about making assumptions. With 60% of people citing benefits as a major factor when deciding to accept a job offer [2], getting this right is crucial for both attracting and keeping talent. The secret? Asking the right questions, using effective methods, and making sense of the data you collect.
Collecting Employee Feedback
Gathering employee feedback is most effective when you use a mix of methods like pulse surveys, focus groups, and one-on-one interviews. For example, companies that rely on pulse surveys to collect feedback report a 14.9% boost in employee engagement. Surveys are quick, anonymous, and great for asking about key areas like retirement plans, health insurance, paid time off, and wellness programmes.
Focus groups, on the other hand, offer a more interactive setting. Employees can discuss their thoughts in detail, often sparking new ideas as they build on each other’s insights. Meanwhile, one-on-one interviews provide a more personal touch, helping you understand the specific needs of individual departments or groups.
Don’t stop at gathering feedback once - keep the conversation going. Use tools like pulse surveys and anonymous suggestion boxes during benefits usage to ensure employees feel safe sharing their honest opinions.
Once you’ve collected the data, analytics tools can help you make sense of it all. These tools allow you to quantify responses, track satisfaction levels, and identify trends over time. In fact, 80% of organisations report that employee feedback has significantly shaped their benefits offerings.
By combining these methods, you create a strong foundation for designing benefits that reflect what your workforce truly values.
Supporting all employees fairly
Meeting the needs of a diverse workforce means recognising that one size doesn’t fit all. As Jane Huston, Chief People Officer at OneSource Virtual, puts it:
"We’re in a new era - organisations now have the most generationally diverse workplaces in history. And while we’ve seen the benefits of this multi-generational workforce, many organisations are still struggling to adapt their benefits to match their unique and varied needs."
Customisable benefits plans allow employees to choose what matters most to them, whether that’s childcare support for a single parent or professional development opportunities for a recent graduate.
Flexibility is another universal priority. Research shows that 78% of Millennials, 73% of Gen X, and 63% of Boomer svalue flexible work options. It’s clear that offering flexibility appeals across all age groups.
Equally important is making sure employees understand their options. Transparent communication about available benefits ensures no one misses out. Plus, employees who receive meaningful feedback are more engaged - 80% of them, to be exact.
Understanding your team demographics
To build a benefits package that truly resonates, it’s essential to understand the demographic makeup of your workforce. Different groups often value different things based on factors like age, gender, and life stage.
For instance, younger employees might prioritise career development and training opportunities, while mid-career professionals often focus on retirement benefits. Employees over 45 typically value having adequate resources and support. Similarly, education levels can influence preferences - with highly educated employees leaning towards growth opportunities, while others may focus on job stability.
Life stages also play a big role. Someone starting a family, for example, will have entirely different needs compared to someone nearing retirement. Segmenting employees by role, experience, and life stage can help you tailor benefits effectively.
Group Health Insurance and Group Life Insurance remain top priorities for many, with 57% and 45% of employees respectively identifying them as must-haves [9]. Additionally, teams led by managers who actively respond to feedback experience around 30% less attrition.
Building your custom benefits package
Once you’ve got a clear understanding of what your employees value, it’s time to create a benefits package that balances legal requirements with flexibility. These days, benefits play a big role in job decisions, so it’s worth getting this right. The goal is to meet statutory obligations while offering choices that genuinely matter to your team. Research shows that organisations offering tailored benefits see a 21% boost in employee satisfaction. Let’s break this down.
Required vs Optional Benefits
Start with the essentials: UK statutory requirements. From there, you can add flexible perks to make your package more appealing. This approach ensures compliance while giving you room to stand out.
Statutory benefits are the foundation. For instance, employees in the UK working a five-day week are entitled to at least 28 days of paid annual leave per year [1]. Statutory Sick Pay (SSP) applies if an employee earns a minimum of £123 per week as of 2025. Additionally, employers must contribute at least 3% of qualifying earnings to a workplace pension, with employees contributing 5% unless they opt out.
As Tsvetelina Nasteva, HR Manager at Casinoreviews.net, points out:
"Sick pay is a different beast. SSP is not enough to support people properly, so most employers offer top-ups or separate policies. Some have private health insurance, some use health cash plans, some just offer more paid days off."
Optional benefits, on the other hand, allow you to differentiate your package. These could include private medical insurance, enhanced pension contributions, dental and vision coverage, or mental health resources. The trick is to focus on what your employees value most.
Statutory benefits are required by law and offer predictable costs while ensuring all employees are covered. These benefits help employers stay compliant with regulations. However, they tend to lack flexibility and may not be particularly appealing on their own. Common examples include annual leave entitlements, statutory sick pay, and minimum pension contributions.
In contrast, optional benefits are additional perks offered at the employer’s discretion. They can enhance employee satisfaction, attract top talent, and provide more personalised options. The downside is that they can be costly, more difficult to administer, and not all employees may take advantage of them. Examples include private healthcare, gym memberships, and enhanced parental leave.
Once your statutory requirements are covered, optional benefits give you an edge. For example, you could enhance the minimum pension contributions or offer perks that align with your company’s values.
Luca Dal Zotto, Founder of Convert Bank Statement, shares this advice:
"To improve tax efficiency, offer flexible benefits, such as a salary sacrifice scheme. Benchmark pension contributions above the statutory minimum. Provide transparent communication about the value of total compensation."
Flexible benefits options
Flexible benefits let employees customise their perks to suit their needs. By allocating a set budget, employees can prioritise what matters most to them, making your package more inclusive.
Popular flexible options include gym memberships, the ability to buy or sell annual leave, enhanced pension contributions, and transport-related perks. Mental health support is another key area - some employees might prefer access to counselling, while others might choose stress management workshops. Offering these choices ensures everyone gets the support they need.
Alex Shubat, CEO and co-founder of Espresa, highlights the importance of this approach:
Tracking which benefits employees use can provide valuable insights into their priorities, both at work and beyond. Additionally, green travel incentives, like cycling schemes or electric vehicle programmes, are becoming increasingly popular among environmentally conscious workers.
Tailored Wellbeing Support
Wellbeing programmes need to go beyond generic initiatives. Mental health issues cost UK businesses £51 billion annually, so offering targeted support is both an ethical and practical move.
The most effective wellbeing strategies treat employees as individuals. Instead of a one-size-fits-all approach, offer multiple support options. Diverse teams are 87% better at decision-making and 35% more likely to outperform competitors, so your wellbeing initiatives should reflect this diversity.
Mental health support could include counselling services or stress management workshops, especially since nearly half of UK employees report that toxic workplaces harm their mental health. Physical wellbeing initiatives might involve gym memberships, health screenings, or nutrition counselling. Financial wellbeing is equally important - programmes offering financial education, debt advice, or emergency loans can help reduce stress. Family-focused benefits, like fertility treatment coverage, adoption support, or enhanced parental leave, are also worth considering.
Jonathan Shooshani, co-founder of Joon, emphasises:
"These personalised benefits allow a company to speak to the individual needs of each employee rather than taking a one-size-fits-all approach."
For maximum impact, combine prevention (like fitness programmes), intervention (such as stress management), and support (like counselling services). Platforms like Heka make this easier by offering over 50 categories of wellbeing options, from fitness and mindfulness to family planning, allowing employees to shape their own wellbeing journey. By integrating this level of personalisation, you can create a benefits package that meets both statutory and individual needs.
Rolling out and measuring your benefits
Creating tailored benefits is just the beginning; implementing and tracking them effectively is what ensures they truly meet employees' needs. A well-executed benefits package can significantly impact both recruitment and retention. In fact, around 60% of job seekers consider benefits a key factor when deciding on a job offer. Companies that prioritise robust benefits often see a 21% boost in productivity, making careful planning and execution essential to maximise returns.
Managing budgets and costs
Start by setting a realistic budget. This involves calculating total compensation and allocating a specific percentage for perks beyond mandatory requirements. One practical approach is salary sacrifice, where employees exchange part of their salary for benefits.
A flexible benefits model can also be effective. Under this system, employees receive a set annual allowance to spend on perks of their choice. This approach helps control costs while giving employees more autonomy over their benefits.
Tracking return on investment (ROI) is equally important. Metrics like retention, recruitment, and productivity are key indicators. Studies show that 95% of companies tracking ROI report positive outcomes from their wellbeing programmes. For example, wellness initiatives can save about £300 annually in healthcare costs per employee. Considering it can cost up to three times an employee's annual salary to replace them, the financial case for retention-focused benefits is strong.
Once financial plans are in place, reducing administrative complexity becomes the next priority.
Reducing admin work
Managing customised benefits can quickly overwhelm HR teams, but technology offers a way to streamline the process. Automation tools and self-service platforms can significantly reduce the workload.
Integrated HR systems that link payroll, benefits administration, and employee data save time and minimise errors. For instance, companies using such systems can save costs equivalent to the salary of a full-time HR specialist. Self-service portals further ease the burden by letting employees access and manage their benefits independently. Modern platforms boast a 93% completion rate for insurance applications, with 85% of employees getting instant coverage decisions.
Automation extends to billing and leave management, saving several hours each month. Opt for benefits providers that offer seamless, end-to-end integrations rather than outdated systems requiring manual input.
Cloud-based platforms also eliminate paperwork and ensure efficient data management. When selecting a system, prioritise those with API technology for real-time updates. These tools turn benefits administration into a largely automated process, freeing up HR teams to focus on strategic tasks.
Measuring results and getting Ffeedback
Once budgets are optimised and admin tasks are streamlined, the next step is to measure the success of your benefits programme. Regular evaluation ensures your offerings deliver value and remain relevant.
Start by establishing baseline metrics before rolling out new benefits. Then, track progress over time to pinpoint areas for improvement. Employee satisfaction surveys should include questions about benefits - covering awareness, ease of access, and perceived value. Conduct annual surveys alongside quarterly pulse checks to stay informed. Tracking your Employee Net Promoter Score (eNPS) can also provide valuable insights into overall engagement.
Utilisation rates are another key metric. They highlight which benefits employees actually use and which ones might need better communication or simplification. High-performing programmes typically see utilisation rates above 70% for core voluntary benefits and 40–50% for wellness initiatives.
Retention rates, internal mobility, and career development metrics can reveal how well your benefits support employee growth. Comparing outcomes between employees who actively use benefits and those who don’t can help isolate the impact of your offerings.
Don’t forget financial metrics. Trends in healthcare costs, absenteeism, and recruitment expenses can provide a clearer picture. For instance, 57% of employees say financial stress affects their productivity, and 87% of UK employees report that relevant benefits improve their work experience. Additionally, 90% of employees believe it’s crucial for their company to prioritise their wellbeing.
Finally, qualitative feedback from focus groups and interviews can uncover insights that numbers might miss. Statistical techniques like regression analysis can refine your evaluation, accounting for variables like job role and tenure. Keep in mind that ROI may take time to materialise, so set realistic expectations when assessing new programmes.
How wellbeing platforms help with customisation
Digital wellbeing platforms have revolutionised how HR teams deliver personalised benefits on a larger scale. These platforms address a major gap in traditional benefits management. Back in 2020, while 81% of large companies offered wellness programmes, only 28% of employees actually engaged with them. Even more concerning, 63% of employees felt unsure about how to use their health benefits.
Modern platforms put personalisation front and centre. Instead of sticking to a one-size-fits-all approach, these tools allow employees to customise their benefits to better match their individual needs. The technology behind these platforms simplifies the process, making it easier for employees to interact with and benefit from their programmes. Here’s a closer look at what these platforms bring to the table.
What wellbeing platforms offer
Comprehensive wellbeing platforms take a broad approach, covering physical, nutritional, mental, social, and financial health. They offer a variety of wellbeing categories, giving employees the freedom to choose rewards and services that resonate with their personal goals. Some standout features include:
- Wellness challenges and health coaching
- Personalised dashboards that track wellness goals, achievements, and progress
- Extensive content libraries filled with articles, quizzes, fitness videos, and healthy recipes
AI and data analytics play a key role here, providing tailored recommendations based on each employee’s unique circumstances.
"Employees are looking for benefits that support their well-being, efficiently, equitably and in ways that are unique to each person." - Mercer
This shift from traditional wellness programmes to engaging digital solutions reflects a broader focus on both physical and mental health. Organisations are moving beyond just physical fitness to embrace a more rounded approach to employee wellbeing.
Results from wellbeing platforms
The impact of these platforms is clear. Take, for instance, a mid-sized tech company that saw a 50% increase in participation after adopting a customisable benefits platform. Employees using these platforms are also 8.3–13.6% more likely to maintain regular exercise routines. Considering that 9 in 10 employees report workplace stressaffecting their mental health, these platforms play a vital role in improving overall work performance.
Beyond individual benefits, these platforms can transform workplace culture. They boost morale, create a more inclusive environment, and help employees achieve better work–life balance. This can be a game-changer in retaining high-value employees, especially when well-being isn't prioritised. Financially, the numbers speak for themselves: every £1 spent on prevention yields £14 in social benefits. Engaged workers who aren't thriving face a 61% higher risk of burnout, a 48% higher chance of daily stress, and a 66% higher likelihood of daily worry.
Why Heka works for UK businesses
The benefits of customisable wellbeing platforms are undeniable, and Heka stands out as a prime example of this in the UK. With over 50 wellbeing categories, Heka offers solutions that cater to a wide range of employee needs - from fitness and mindfulness to nutrition and family planning. This aligns with the finding that 62% of HR professionals want more flexibility and customisation in employee benefits programmes. Heka’s approach ensures employees can choose options that suit their unique circumstances.
Heka also integrates private health services, providing immediate healthcare access to complement NHS care. This means faster support for employees when they need it most. Additionally, Heka’s analytics tools allow HR teams to track programme effectiveness, which is particularly valuable given that only 17% of organisations currently evaluate their mental health initiatives. The platform’s scalable design and custom pricing mean businesses only pay for what they need, while its streamlined management reduces administrative workloads.
"Virtual care solutions bring health care to the consumer rather than the consumer to health care. They continue to gain momentum as employers seek different ways to deliver cost effective, quality health care while improving access and the consumer experience." - Brian Marcotte, President and CEO of the National Business Group on Health.
Heka embraces this trend by delivering wellbeing solutions directly to employees through an easy-to-use digital platform. This eliminates barriers to access and increases engagement. By meeting the growing demand for personalised benefits, Heka supports the shift towards more tailored and effective employee wellbeing programmes.
Building your benefits strategy
Crafting a benefits strategy for 2025 calls for a shift from traditional methods to approaches that genuinely resonate with today’s workforce. Employees are increasingly vocal about their expectations, with 53% saying they’d stay longer if their benefits better matched their needs. Companies that offer well-rounded benefits packages report 41% higher employee satisfaction, making an effective benefits strategy a clear competitive edge.
The starting point for any successful strategy is knowing your workforce. Regular employee surveys and focus groups - broken down by demographics - can provide insights that help fine-tune your offerings. This continuous feedback loop ensures your strategy evolves alongside your employees’ changing needs [38].
Budget planning is another critical element. With healthcare costs projected to rise by 5.8% in 2025, careful financial planning is essential. Companies with strong benefits packages not only experience a 56% lower turnover rate but also avoid the hefty expense of replacing employees, which can cost up to 33% of an individual’s annual salary. Once the budget is in place, the focus can shift to tailoring benefits that cater to a diverse workforce.
Flexibility is no longer optional - it’s expected. Seventy percent of employees prefer benefits they can customise to fit their unique life circumstances. Expanding your offerings to include options like financial wellness programmes, mental health resources, and family-friendly perks allows employees to choose what matters most to them. This emphasis on choice aligns with leadership wisdom, as Doug Conant, CEO of Campbell’s Soup, famously said:
"To win in the marketplace, you must first win in the workplace." – Doug Conant
To support this flexibility, technology integration plays a vital role. Digital platforms make it easier for employees to manage and personalise their benefits, while simplifying administration for the organisation.
A clear communication strategy can amplify the impact of your benefits. When employees understand their options, they’re 99% more likely to feel valued. Tools like webinars, concise emails, and FAQ hubs can break down the details and highlight how the benefits align with the company’s values.
Regular evaluation is just as important. By analysing utilisation data and comparing industry benchmarks, you can ensure your benefits remain competitive and relevant.
Special attention should be given to mental health and wellbeing. With nearly 60% of employees reporting work-related stress negatively affects their mental health, providing robust support is no longer optional. The World Health Organisation reports that every £1 spent on addressing common mental health issues yields a £4 return in improved health and productivity.
To measure the success of your benefits programme, set SMART goals. Track metrics like engagement, participation, retention, and productivity to demonstrate the impact of your strategy and justify ongoing investments.
Interestingly, 41% of employees say they’d accept a pay cut in exchange for better wellness benefits and a more supportive work environment. This shift in priorities underscores the importance of a thoughtful benefits strategy in attracting and retaining top talent.
Ultimately, your benefits strategy should align with your broader business goals while remaining adaptable to changing employee needs and market trends. By focusing on personalisation, leveraging technology, and maintaining clear communication, you can create a programme that not only attracts talent but also fosters long-term engagement and loyalty, driving both employee satisfaction and business success.
