In a competitive job market, organisations that offer comprehensive, innovative, and flexible benefits stand out as employers of choice. The right benefits package not only enhances employee satisfaction but also drives productivity, engagement, and well-being. Research by Willis Towers Watson (2023) found that 70% of employees consider benefits a key factor in job decisions, and organisations with strong benefits programs experience higher retention rates and improved employee loyalty.

Key Employee Benefits in 2025

1. Flexible Working Arrangements
Recent legislative updates in Great Britain, such as the Employment Relations (Flexible Working) Act 2023, have further strengthened employee rights around flexible work. From April 2024, employees have the right to request flexible working from day one of employment, rather than after 26 weeks. Additionally, the number of times an employee can request flexible working per year has doubled from one to two, and employers must respond to requests within two months instead of three.

These changes mean HR teams must proactively review and adapt their flexible working policies to ensure compliance and improve employee satisfaction. A proactive approach to flexible work policies can help employers attract a wider talent pool, reduce absenteeism, and increase employee engagement. The Chartered Institute of Personnel and Development (CIPD) suggests that businesses offering flexible work see an improvement in retention rates by up to 30%.

Note: These changes do not yet apply in NI, however many proactive employers are mirroring these recent changes in GB as a valuable retention tool.

2. Mental Health and Well-being Support
Mental health has become a priority for employers, with organisations recognising its direct impact on productivity, absenteeism, and overall job satisfaction. According to Deloitte’s 2024 UK Mental Health Report, poor mental health costs UK employers approximately £51 billion per year due to absenteeism, presenteeism, and staff turnover.

Forward-thinking employers are investing in comprehensive mental health support initiatives, including:

• Employee Assistance Programs (EAPs) – Providing confidential counselling and support services for employees dealing with stress, anxiety, and other challenges.
   
• Mental health training for managers – Research by the CIPD (2023) shows that over 60% of employees believe line managers play a critical role in supporting mental health. Training managers to recognise signs of distress and offer support can significantly improve workplace well-being.
   
• Mental health days – Dedicated paid leave for employees to prioritise their mental well-being is becoming an increasingly popular benefit.
   
• Access to digital mental health platforms – Apps like Headspace, Calm, and corporate wellness platforms provide employees with on-demand tools for stress management, mindfulness, and therapy.
   

A study by Mind Share Partners (2023) found that companies with strong mental health support experience a 40% decrease in burnout-related turnover. Investing in mental health benefits not only reduces absenteeism but also boosts employee engagement, morale, and overall performance.

3. Enhanced Parental and Family Benefits
Supporting working parents is a key priority for many businesses. Leading companies offer:

• Extended paid parental leave – Many organisations are now providing at least 6-12 months of paid leave, recognising the importance of bonding time for new parents.
   
• Childcare assistance or subsidies – Employers are increasingly offering on-site childcare facilities or financial support for childcare costs to reduce the burden on working parents.
   
• Support for fertility treatments and adoption – With growing awareness around infertility, more companies are covering fertility treatments, surrogacy, and adoption costs as part of their benefits package.
   
• Flexible parental return-to-work programs – Phased return options, part-time arrangements, and coaching for returning parents help ease the transition back to work.
   
• Paid leave for caregiving responsibilities – Beyond maternity and paternity leave, some organisations offer paid leave for employees caring for elderly relatives or sick family members.

The CIPD highlights that offering enhanced parental benefits significantly boosts employee satisfaction and loyalty, leading to better long-term workforce stability.

How HR Can Optimise Benefits for Maximum Impact
Many employees are unaware of the full range of benefits available to them. HR should regularly communicate benefits through email, intranet, and meetings, offer an interactive benefits portal or could provide benefits education sessions.
HR teams should regularly assess benefits packages against industry standards. Conducting employee surveys and market benchmarking ensures that offerings remain competitive and relevant.

As workplaces continue to evolve, so will employee expectations. HR professionals must remain agile, embracing new trends and adapting benefit structures to meet changing workforce needs. 

Sources:
https://www.wtwco.com/en-gb/insights/2023/07/2023-benefits-trends-survey-report-united-kingdom
https://www.cipd.org/globalassets/media/knowledge/knowledge-hub/tools/2024-pdfs/8557-flexible-working-business-case-evidence-feb24.pdf
https://www.deloitte.com/uk/en/about/press-room/poor-mental-health-costs-uk-employers-51-billion-a-year-for-employees.html
https://www.cipd.org/uk/knowledge/reports/health-well-being-work/
https://www.mindsharepartners.org/mentalhealthatworkreport-2023