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Two in five employers have cut workplace perks over the past year, research finds

The study from Robert Walters found 43% of business leaders reduced company benefits in the past 12 months, with a quarter planning more cuts.

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Two in five employers have cut workplace perks over the past year, research finds
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Almost half of UK employers have cut workplace perks in the last year, according to research by Robert Walters. 

The study found 43% of business leaders reduced company benefits in the past 12 months, with a quarter planning more cuts and a third not ruling them out.

Job postings offering at least one benefit dropped from 66.7% in 2024 to 64.6% in 2025.

Daniel Harris, managing director – Robert Walters UK&I, said: “The shift towards leaner benefits packages has been influenced by years of raised business costs, compounded by domestic tax hikes, wider global volatility, and inflation.

“While this cost-saving approach is more sustainable than direct salary hits or headcount reductions, cutting the benefits that employees value most – or replacing them with lower-cost substitutes – may mean that what is saved on budget, could be lost on engagement, productivity and even loyalty.”

62% of UK employees said they noticed their workplace benefits had been cut in the last 18 months. 

The number of employers offering unlimited annual leave fell by 45% between 2024 and 2025. 

Fewer workers received annual bonuses, discounted shares or stocks, saving schemes, equity, and commission.

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At the same time, more people received lower-cost perks such as free lunches or breakfasts, discounted gym memberships and retail discounts.

Harris added: “Financial benefits are closely aligned with business performance and the wider economy and, as a result, are usually the first to be pulled back during tougher periods. 

“However, many professionals rely on these benefits forming an important part of their total compensation package. 

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“A sudden scale-back is likely to make some workers feel underpaid and could cause them to look for new opportunities.”

Data also showed that 43% of professionals unhappy with their bonus said they were actively looking for a new job. 

87% of business leaders reported a drop in workplace morale as a result of benefit reductions.

Over half of UK professionals said they would start job hunting if key benefits like healthcare plans, flexible working and bonuses were reduced.

Harris said: “Low morale almost always influences job seeking sentiment. By offering alternative, tax-efficient schemes such as salary sacrifice, leaders can help their employees retain the benefits that mean the most to them.

“During times of economic instability, and labour oversupply, businesses often pull back on perks. 

“However, reducing the benefits professionals value will create new retention and productivity challenges. 

“Instead, organisations should focus on building leaner rewards strategies that stop unnecessary spending but allow employees to hold onto the benefits they value most.”

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