What are the most innovative benefits being offered by employers today?  

Many forward-thinking business and HR leaders are implementing more innovative benefits to better align benefits to the needs and values of their people. At a time when so many people are re-evaluating what they want from their working lives, those that feel their employer isn’t doing enough to support them or that they’re not well aligned to their personal values, are far more likely to leave an organisation.  

This is where benefits can play a big role. Employees expect their employer to support their wellbeing and to offer a benefits package that is relevant to them. And they expect it to align with their values. In our 2023 Evolution research, 57% of employees said that benefits that support their wellbeing would have the greatest impact on their employee experience, and 48% said benefits that were better aligned to their values would have the greatest impact.  

Benefits are a tangible way for employers to show their people that they’re providing support across wellbeing, values and purpose, ESG and DEI.  

3 innovative benefits that are growing in popularity 

1. Tree planting 

Benefits that support ESG goals and can help employees reduce their carbon footprint are becoming more in demand. Along with offering the latest sustainable benefits (such as electric vehicles, green discounts, and volunteering), companies are looking to their tech providers to make a difference. As a benefits technology platform, we’re looking to lead the way in generating positive climate action; with each Benefex marketplace benefit selection employees make on our platform, we plant a tree in a key global reforestation area in Nepal.  

2. Innovative insurance products 

The insurance provider market is also innovating to meet evolving employee needs, both as standalone and value-add benefits; these new benefits take a more holistic view of protection and support different groups, especially across women’s health, neurodiversity and mental health. For example, Bupa’s Menopause plan has been specifically designed to empower people to seek advice, choose relevant treatment, get access to private GPs, and take control of their health.  

3. Benefit allowances 

The next step in the trend towards values-based benefits is the increasing uptake of spending allowances which allow employers to offer a more personalised, flexible approach to benefits; employees can choose to spend their pot on something that directly relates to their own preferences, needs and values. Employees can choose (within your rules) to make absolutely anything a benefit: Netflix, Spotify, hellofresh, food on Deliveroo; anything you allow.  Already popular in APAC, allowances are becoming more popular in the UK, particularly to address the wider wellbeing needs of a diverse population.  

How can employers ensure they get ROI from implementing innovative benefits?  

To get the biggest return on investment, it’s essential to understand the current position of employee benefits within the organisation, the challenge(s) you need to overcome, and how you want to measure success. If you clearly understand and document your objectives then you can measure your success against that, and any good benefits analytics feature will let you do just that.   

It’s not always about simply spending more; current spend can be re-directed to support benefits that are more relevant to the changing workforce. And there’s often a clear business case to be made between benefits spend and return-on-investment. 

Staying ahead of the game  

It’s becoming harder for businesses to retain their best people – even though the Great Resignation may have slowed, the war for talent remains, and benefits are seen by both employers and employees as a differentiator.  

90% of HR and Reward directors believe that the benefits an employer offers directly impact employee wellbeing; and enhancing employee wellbeing is now the number one reason employers offer benefits (Benefex Evolution Report). Employees too see their benefits provision as intrinsically linked to their wellbeing and their wider employee experience – 91% of employees believe that benefits impact their wellbeing. As a result, they’re taking a much greater interest in their employer’s offering. By necessity, employees have become more focused on benefits as a way to get help with their financial wellbeing and additional protection against the impact of illness and injury. 

So, what’s next? We have seen huge growth in car salary sacrifice schemes, and this is expected to continue over the next few years as employers look for ways to support employees with their sustainability goals. I also anticipate we will see more benefits emerging to support neurodiversity, financial wellbeing, and that spending accounts will continue to grow in popularity as a means of offering ultimate flexibility. As remote and hybrid working is now the ‘norm,’ we can also expect benefits that support employees’ home life to grow in popularity.