As we continue to navigate a modern workplace, benefits are playing an increasing role in defining competitive People strategies. Employees now want more than just a salary from their jobs. They seek an all-round approach that holistically supports their wellbeing and unleashes their talent – yet, 1 in 3 employees don’t feel supported by their business. This presents a huge retention risk, backed by latest data from PwC demonstrating 23% of UK employees plan to leave their role in the next 12 months due to workplace dissatisfaction. 

Yet, in a climate where consistent salary increases aren’t feasible for many businesses facing ever-restricting budgets, optimising the benefits package is a fundamental way to deliver on what employees want and need.  

So, what are the latest employee benefits trends in 2023? And how can employers keep up? 

Consistent winners  

The events of the past few years have led to particular perks becoming consistently popular. According to the Reward Management Survey by CIPD, 85% of employers now offer flexible working in line with a modernised climate where employees expect more autonomy and balance in their working life. Further, 76% are delivering Employee Assistance Programmes (EAP) to empower team wellbeing and performance through support services and tools.  

Health and wellbeing benefits are also on the rise. For example, 63% of employers deliver optical health support, from free eye tests to discounted vouchers.  

And in an unprecedented economic climate, financial wellbeing benefits now unsurprisingly sit at the forefront, leading 62% of businesses to offer pensions with a 6% minimum contribution.   

Emerging trends 

In 2023, there are some emerging benefits for businesses to keep their eye on if they want to deliver a competitive People experience. 

Financial wellbeing benefits are perhaps the most prominent of all. As the cost of living continues to rise, employee retail and lifestyle discounts are surging in popularity. These are an efficient and meaningful way to assist teams with everyday expenses, including savings on supermarket shops and high-street brands, as well as discounts on meals out and day trips.  

Similarly, transport savings are on the up. Vehicle purchase and repair schemes alongside Cycle to Work are becoming more widely adopted to not only support employees with commuting costs but also help them champion greener lifestyle choices.  

Another emerging trend in 2023 surrounds health and wellbeing benefits, including dental cover, health cash plans and gym membership discounts. Employees are increasingly seeking perks that authentically support their physical and mental health – and to truly empower the best from their people, businesses need to address this.   

A key consideration 

To attract and retain talent in an ever-competitive candidate market, it’s never been more important for People teams to keep their finger on the pulse for the most sought-after benefits. But, there is one, often overlooked, key consideration – there is no one-size-fits-all approach.

Whilst keeping up with the latest employee benefits trends is important for maintaining a competitive edge, the fundamental component of an exceptional offer is the power of personalisation – and understanding what your people want. Effective benefits packages reflect the evolving needs of the workforce – and employers must first understand these needs. Through regular assessment and employee feedback, People teams must then adapt and evolve their offer in line with the natural demographic changes across the workforce, to ensure their offer hits the mark by authentically supporting teams. 

Want to explore how to optimise your benefits offer? Book a free consultation with Jamie.