Employee Benefit Trends for 2025

As we move further into 2025, the world of employee benefits in the UK continues to adapt to meet evolving workforce expectations. Against the backdrop of rising costs, shifting work patterns, and a greater emphasis on personal wellbeing, it’s clear that employee benefits packages will play a pivotal role in attracting and retaining top talent this year whilst also helping employers to mitigate some of the National Insurance increases.?

Here are some of the top trends to watch:?

Personalised and Flexible Benefits?

Flexibility remains a major draw for employees. Workers want benefits that align with their individual needs, whether that’s enhanced parental leave, health insurance options, or tailored perks for their stage in life. In fact, organisations are finding that empowering employees to choose their own benefits can lead to higher satisfaction and greater engagement across the board.*?

Mental Health Support?

The ongoing conversation around mental health in the workplace is driving many employers to take action. Mental health first aiders, access to counselling, and proactive resources for stress and resilience are becoming increasingly common. A proactive approach to mental health not only boosts employee morale but also supports productivity in the long term.?

Financial Wellbeing Initiatives?

The cost-of-living crisis has underscored the importance of financial education and support within employee benefits. From salary exchange schemes to access to financial planning tools, employers are stepping up to help workers manage their finances better. Expect to see financial wellbeing firmly embedded into overall wellbeing strategies in 2025.?

Sustainability and Ethical Benefits?

Employees are increasingly interested in perks that align with their values. From pension plans with a focus on positive Environmental, Social and Governance investments to eco-friendly commuting schemes, benefits that prioritise sustainability and ethical considerations are rising in demand.?

Enhanced Support for Hybrid and Remote Workers?

Flexible working is here to stay, and so are the benefits that support it. Home office stipends, virtual fitness classes, and flexible schedules are all becoming staples of modern benefits packages. This tailored approach ensures hybrid and remote employees feel just as supported as those in the office.?

Utilisation of Salary Exchange??

With the increased level of employer National Insurance from April, comes an additional cost.? Where it is permissible we expect to see employers utilising salary exchange for such things as pension contributions, Electric Vehicle and Cycle to Work schemes or Holiday trading to not only mitigate some of the increased costs but also enhancing the employee benefits offered.?

Legal Compliance and Governance?

With ongoing changes to legislation, staying compliant is a must for all employers. Regularly reviewing benefits to ensure they meet regulatory standards is not just about avoiding penalties - it’s also an opportunity to align with best practices and enhance employee trust.?

Though trends may come and go, creating a benefits strategy that works for your unique workforce is essential. The key is striking the right balance between innovation, inclusivity, and sustainability.?

If you need expert guidance to craft a competitive, cost-effective employee benefits strategy for 2025, our consultants are here to help.?

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"Acumen helped us take traditional policies that were just a tick in the box, and make them meaningful for our employees." Flotation Energy 2025

Please note the content within this article is correct at the time of publishing and is intended for informational purposes only. Clients should seek appropriate guidance from their employee benefits consultant.?

Acumen Employee Benefits is an appointed representative of Acumen Financial Planning who are authorised and regulated by the Financial Conduct Authority. FCA number: 916905?

*‘Flexible Benefits and Personalisation’, Mercer