Salary is money you have to manage, but benefits have the potential to take care of life’s essentials upfront, giving employees peace of mind and sparing them the hassle of figuring it all out alone. In an overstimulating world that constantly demands our attention, where decisions big and small compete for mental space, benefits can mean one less thing to worry about.

The problem is that many companies still offer cookie-cutter perks that aren’t relevant to their employees’ needs. Why? Because rethinking benefits is messy. It takes listening, budget shifts, and admitting that what worked five years ago might be irrelevant today. But it’s a challenge worth confronting.

Salaries aren’t the silver bullet

Today, benefits are considered even more important than salary, yet they are becoming increasingly complex to get right. With multigenerational workforces and international teams, each with different needs and priorities, employers can only wish for a surefire, straightforward formula.

There are clear trends, however. As the cost of living rises and financial pressures compound, employees are showing a clear favour for benefits like employer contributions to health savings accounts and voluntary benefits like critical illness, hospital indemnity, and disability income. 

To truly support employees, organisations must continuously assess and adapt their benefits. Outdated or irrelevant benefits can leave employees feeling unheard and undervalued, leading to disengagement and lower morale. Regularly reviewing and customising benefits to address and support evolving employee needs will ensure that they remain relevant, inclusive, and meaningful to everyone across the organisation. Does it still make sense to offer gym memberships without second thoughts if only less than 10% of your employees would actually use them?

Caring about employee wellbeing beats benefit box-ticking

While designing employee benefits, it’s important to consider what it means for different employees, taking into account their diverse needs, life stages, and personal circumstances. Employees are more likely to engage with benefits that are in tune with their specific needs and appreciate them when they see a genuine commitment from the organisation to their wellbeing. Employees may have varying priorities, ranging from career development and flexible work options to mental health, family support, and financial planning.

More often than not, it’s hard to categorise employee needs and challenges into watertight categories. For example, an employee struggling with childcare costs may also face difficulties saving for a home, while someone supporting an aging parent might experience both emotional stress and financial strain. Employee needs are often interconnected, making it essential for benefits to be flexible and holistic rather than narrowly categorised.

While perks like gym memberships, wellness stipends, and team outings are all good, without a strong foundation of something like financial security, these extras hold less value. This is why benefits such as retirement plans carry significant weight in employment decisions. In fact, a study found that 93% of employees consider retirement benefits, like 401(k), a key factor in choosing an employer, and half would even decline a job offer if no such benefit was provided. What this highlights is the fundamental fact that employees prioritise benefits that support their long-term wellbeing over short-term perks.

Employee priorities and expectations around benefits also vary widely across cultures. In the US, stock options are often seen as a key component of compensation, while in China, job stability tends to take precedence (55% of job seekers there rank job security as their top employment consideration). Similarly, regional differences shape benefit preferences; health insurance is a critical factor for employees in the US, whereas in many European countries, strong parental leave policies hold greater importance. To attract and retain talent across different markets, organisations must recognise these regional nuances. One effective approach is to offer flexible benefits packages that allow employees to choose what best fits their individual needs and priorities.

Yes, ultimately, organisations want their compensation packages to nurture loyal, efficient workforces. However, approaching benefits solely from that perspective might only yield the most obvious answers, revealing nothing new. For example, instead of thinking about how to keep an employee long-term, think about more specific questions, such as: What cognitive burden can employees be relieved of? How can we keep them engaged enough to continue working with the organisation? How can benefits be designed to not just support their careers but improve their overall quality of life? 

Because at the end of the day, that’s what people work for – to build a stable, secure life they can enjoy.

How benefits are provided is as important as what benefits are offered

When organisations actively seek input from employees before implementing benefits, it not only shows that their wellbeing is prioritised but also that their preferences hold value. Conversations around benefits create an open, comfortable environment where employees feel heard and encouraged to express their thoughts and feelings – an avenue for rapport building. Benefits, lately a key component of compensation, have evolved beyond the traditional one-and-done approach.

Employees today seek benefits that have tangible, positive impact on their lives, whether through financial security, health support, or work-life balance. To ensure benefits remain meaningful, organisations must prioritise ongoing conversations and feedback loops, allowing for thoughtful iterations throughout an employee’s time with their companies. Needless to say, rolling out benefits without consultation with employees may not have the same effect or engagement.

Making the benefit of benefits known

No matter how valuable a benefits programme may be, it is only as effective as employees' understanding of it. Only half of the respondents from a recent study said they are satisfied with how their workplace benefits are communicated, and 80% feel they are not making the most of these benefits. This disconnect doesn’t just impact employees but also represents a substantial loss to company resources, as organisations invest considerable time and money into developing competitive benefits packages.

Sometimes, the missing link between what employees want and what’s offered is just effective communication. By making the extra effort to educate employees through clear, ongoing communication, personalised guidance, and accessible resources, companies can ensure that their investment in benefits translates into real value for both employees and the organisation. Think of benefits as something that employees can turn to – a touchpoint that strengthens their connection to the organisation by reinforcing a sense of support and belonging. Ultimately, by offering better benefits and ensuring employees truly understand and utilise them, companies can build a more committed, efficient workforce that feels valued and supported, driving success for the organisation as whole.