Marvin OnumonuPaid sick leave remains the top benefit for UK employees, according to the latest research from HR, payroll and benefits software provider Ciphr.
Out of 2,000 workers surveyed, 68% said company sick pay was the most important benefit, ahead of annual pay rises that match inflation (60%) and flexible working hours (58%).
Over half (54%) of employees also value pension contribution matching and extra holiday allowance (50%).
Other popular incentives included upskilling, employee discount schemes, paid overtime, hybrid working, and personalised development.
There were differences in what employees valued depending on age and circumstances.
For example, workers over 45 placed more importance on pension contribution matching, while those under 45 were more likely to value flexible hours and upskilling.
Over half of employers said they offer seven out of the 10 most-wanted benefits, including upskilling, flexible working hours, employee discounts, hybrid working, paid sick leave, personalised employee development, and pension contribution matching.
However, only 38% of employers said they offer pay rises that match inflation, despite 60% of employees wanting this.
There was also a gap in paid sick leave and extra holiday allowance, with more employees wanting these than employers offering them.
Karen Lough, director of people at Ciphr, said: “With employer National Insurance (NI) contributions rising and wage bills under sustained pressure, it’s understandable that companies are scrutinising every line of their reward and benefits spend.
“But this research highlights a real risk in employers cutting back or standing still.
“It also shows that employees have clear priorities – paid sick leave, pay rises that keep pace with inflation, pension matching, and flexible working – and in several areas there are significant gaps between what they expect and what employers tell us they currently provide.”
Lough added: “Take paid sick leave for example – the top-ranking benefit chosen by employees. Only half (56%) of employers offer company or contractual sick pay.
“This creates a situation where many employees may force themselves to work when they may not be well enough to do so, because they can’t afford to live on SSP (Statutory Sick Pay).
“While the latest SSP reforms are welcome and will make sick pay more accessible to lower earners and part-time earners, the changes won’t fully bridge the gap for employees without company sick pay.”
She said: “That has consequences for productivity and long-term absence that employers often underestimate.
“A strong, clearly communicated benefits package builds trust, helps reduce absenteeism, burnout and attrition, and strengthens your employer brand.
“Getting it wrong, or simply doing nothing, carries its own cost, one that tends to show up quickly in increased recruitment spend and lower engagement and performance scores.”
She added: “Giving your people greater autonomy to choose the benefits they genuinely want helps make them feel valued and more motivated.
“But it’s important to be led by the data – use feedback from existing employees, and recent leavers, to understand what you’re doing right and what needs to improve.
“Interrogate your benefits uptake data – are your employees aware of what benefits they may already have access to? And benchmark to identify where to focus your investment for maximum impact.”
She said: “It won’t always be possible or financially viable to deliver on every specific benefits request.
“But organisations that can act on employee feedback, wherever possible, and provide agile and flexible benefits schemes are more likely to have a more resilient and high-performing workforce.”
Phil Curtis, managing director of FlexGenius, part of the Ciphr Group, said: “It is becoming ever-more important for employers to respond to the changing needs of employees as they progress through their working lives.
“A workforce that spans different generations, life stages and working patterns no longer responds to a single, fixed benefits package.
“What supports a graduate in their first job is rarely what supports a parent on phased return, or a senior leader thinking about long-term financial protection.”
Curtis added: “A personalised employee benefits platform, like FlexGenius, is what makes flexible benefits work in practice.
“They give HR and reward teams the structure to design a thoughtful package, the tools to communicate it so people actually use what’s on offer, and employees genuine choice across their health, financial and lifestyle priorities.
“That is where we see significant improvement in the physical, mental and financial wellbeing of employees, and it shows up in retention, attraction and engagement.
“Employees want to feel fairly rewarded for the value they bring to an organisation, and offering relevant, personalised benefits is an essential part of that.”
