How important are workplace benefits?

Three-quarters (75%) of UK workers say workplace benefits provided by their employer are more important today than they were two years ago.

This is according to The Big Benefits Report 2025/26*, which reveals how global businesses are turning benefits into a competitive advantage.

From economic pressure and new regulation to AI disruption and shifting employee expectations, 2025 has reshaped reward and benefits in more ways than one. 

The Report finds that for 69% of employees, their benefits are having a positive effect on their lives. And investment in benefits is also good for the businesses proactively investing in workplace benefits and approaching them as a strategic move - 84% of UK businesses report that benefits provision is driving productivity and business growth for their organisation, with 94% - rising to 97% in global organisations – saying that benefits have made a measurable impact on their business.

What is the impact of benefits on workers?

Benefits don’t have to be big and expensive. The key lies in making them accessible, what workers actually need, and those that make a tangible difference to their lives.

The Report finds that nearly seven in ten (69%) of employees globally, 63% in the UK, say their benefits are having a positive effect on their lives.

Drilling down into the detail, this positive impact ranges from financial peace of mind through savings and access to financial information – from payslips to pensions for example – to wellbeing initiatives and support, with 64% of workers saying they are more productive at work as a result, and 63% are more motivated and say their overall wellbeing has improved too.

Report findings: the measurable impact of benefits on organisations in the last 12 months

The headline advantages for businesses from their employee benefits according to the Big Benefit Report are:

·       74% - productivity and business growth

·       69% - employee wellbeing

·       67% - employee engagement and motivation

·       65% - employee satisfaction with benefits

·       57% - retention

·       52% - recruitment

·       32% - employer National Insurance (NI) savings

What do workers want next from their benefits?

Nearly two-thirds of employees (65%) say their expectations for benefits have increased, and 64% now expect more wellbeing support – with expectations highest among Gen Z workers, with 72% of them saying they want more from their benefits and wellbeing than they did just a year ago.

Specifically, UK workers rank their most liked benefits as:

1.     Workplace savings

2.     Holiday trading

3.     Private medical insurance

4.     Dental insurance

5.     Life insurance

6.     Critical illness insurance

7.     Nomination of beneficiaries

8.     Travel insurance

9.     Gym memberships

10.  Healthcare cash plan.

But whilst workers acknowledge that workplace benefits provision has improved, thanks to better flexibility, personalisation, and a smoother experience, they do say there is plenty of room for improvement.

What can businesses do?

Organisations must continue to refresh and invest in their benefits strategy and overall offering, which as the Report proves, will only result in maximum benefits from worker productivity, engagement, and wellbeing.

Good workplace wellbeing and benefits solutions represent a tool that helps offer workers more incentives than pay rates alone, but, as the research has found, many workers are simply put off from using them because they are cumbersome, onerous and not fit for purpose.

The key lies in making the benefits really easy to use, with access when and where workers need it, and a benefits offering that has been designed to enhance and support better work:life balance for everyone.

A good example of a pay and benefits solution that does all of this is the Work Wiz Workforce Wellbeing and Benefits App. This value-added employee perks app unlocks access to a vast array of inclusive features, and is designed to enhance and support a better employment experience for everyone in their workforce, with an extensive suite of features that will apply to all employees, regardless of their age, role or position in the company.

Workers and employees have access to a complete package of 24/7 GP and mental health support, money-saving lifestyle discounts and streamlined employment communication in an easy to use mobile portal.

About us

Magic Connect are strategic workforce solutions consultants. We help organisations solve workforce challenges by matching them with the most suitable partners, based on operational needs, compliance demands, and long-term outcomes.

As an independent consultancy, we draw from a network of specialist partners, each vetted for expertise in regulated sectors, contingent labour models, and compliance-focused delivery. What sets us apart is how we work. While many consultancies and brokers offer surface-level recommendations, Magic Connect provides hands-on support to ensure every solution is effectively implemented, integrated, and aligned with the client’s existing structure. This includes onboarding assistance, internal communications, and full activation via Work Wiz—our mobile-first platform that centralises engagement, benefits, payslips, and wellbeing tools.

*Findings of the Benifex Big Benefits Report 2025/26 are based on insights from 3,500+ employees and HR leaders across seven regions worldwide and 12 industries from energy and utilities, financial services, healthcare and manufacturing, to media, pharmaceutical, professional services, public sector, retail, technology, and transport and logistics.