Your best people want the best benefits. Perks that match their values, ambitions, and lifestyle. With new technology, evolving workforce demographics, and UK legal reforms shaking up the employment landscape, HR leaders have a golden opportunity to reshape their employee benefits strategy. Now’s the time to create packages that truly support a diverse, multigenerational workforce.
Here are the six key benefits trends set to shape employee engagement and retention in 2025:
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Flexible working is the new standard
Backed by the UK government’s Employment Rights Bill, flexible work empowers employees to stay in their jobs, handle caregiving duties, and achieve a better work-life balance.
How to implement:
- Remote and hybrid work: Allow employees to balance in-office and remote days based on their roles and team needs
- Flexible schedules: Offer compressed work weeks, flex-time arrangements, or customised hours to accommodate individual preferences
- Flexible time off: Focus on outcomes rather than hours worked, and enable your employees to recharge when needed
- Job sharing: Enable two employees to share a single full-time role, which offers greater flexibility without compromising productivity
Why it matters: Flexibility fosters trust, boosts morale, and helps you hold on to your best people. It's the foundation of a culture where employees can thrive.
Related reading: How Ciphr does flexible working
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Personalised benefits tailored to every employee
With Gen Z now a quarter of the workforce and more employees over 50 than ever, personalised benefits are non-negotiable.
How to adapt:
- Choice-based plans: Allow employees to tailor packages with traditional and modern options, such as health insurance, estate planning, fertility coverage, and pet insurance
- Lifestyle spending accounts (LSAs): Provide discretionary funds for personal wellness, professional development, or mental health
- Customisable health plans: Offer tiered options for dental, vision, menopause support, and other specialised care
- Professional development budgets: Provide employees with personalised learning funds to foster career growth
Why it matters: Personalised benefits increase loyalty and engagement. They can help to position your organisation as a forward-thinking, employee-first workplace.
Related reading: How employers can cater for multi-gen workforces
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Holistic wellbeing: mental, physical and financial wellbeing
We can't think of wellbeing as a perk: it's a priority.
Employees choose companies that take care of their mental, physical, and financial health in a meaningful way.
How to deliver:
- Mental wellbeing support: Provide access to mindfulness apps, stress management training, and open the door to groups and communities to help combat loneliness, which costs UK employers £2.5 billion annually
- Physical health plans: Move beyond gym memberships with ergonomic assessments, health screenings, and team fitness initiatives
- Financial wellbeing programmes: Offer resources such as financial planning tools, student loan assistance, and emergency savings options
Why it matters: Employee wellbeing enhances engagement, productivity, and retention. A healthy and happy workforce is what all employers should prioritise.
Explore: wellbeing eLearning courses
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Financial wellbeing to help ease stress beyond salaries
Over half (57%) of employees cite financial stress as their biggest concern. One in four (23%) ran out of money before their ‘pay day’ (or equivalent) at least once in 2024.
How to make an impact:
- Financial literacy programmes: Equip employees with knowledge about how to budget, save and invest
- Emergency savings funds: Offer automatic savings options or employer-matched contributions to build financial safety nets
- Student loan support: Consider repayment assistance, refinancing options, and access to debt counselling
- Retirement planning support: Deliver workshops, apps, and phased retirement options to help employees plan for the future
Why it matters: Reduced financial stress boosts focus, productivity, and satisfaction. It can also contribute to a better overall employee experience.
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DEIB: create a truly inclusive workplace
Diversity, equity, inclusion, and belonging (DEIB) strategies aren’t optional—they’re essential for a thriving workplace.
Employees who feel supported are 3.4 times more likely to stay engaged.
Steps to integrate DEI into benefits:
- Inclusive parental leave: Implement gender-neutral policies that cover adoption, surrogacy, and single parents
- Fertility benefits: Expand family-building options with IVF, egg freezing, and surrogacy support
- Culturally sensitive benefits: Offer flexible holidays, access to diverse mental health providers, and alternative medicine coverage
- Disability support: Ensure platforms are accessible and provide assistive technologies and accommodations
Why it matters: A strong DEIB strategy attracts top talent, fosters innovation, and enhances employee satisfaction.
Why not explore our range of DEIB courses, or our DEIB consultancy?
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Technology and data to transform benefits delivery
Technology is at the core of how organisations shape and deliver benefits. It can make or break accessibility, efficiency and impact, so it's critical to get it right.
How to stay ahead:
- Personalised benefits platforms: Create mobile-friendly hubs where employees can explore and customise their rewards packages
- Data analytics: Use insights to track benefits utilisation, measure return on investment (ROI), and refine offerings based on real-time employee needs
Why it matters: Tech-driven solutions improve engagement, satisfaction, and efficiency and can drastically save HR teams time and resources.
Ready to take action?
To thrive in a competitive talent market takes more than following trends. HR leaders need to stay ahead and drive innovation. You can attract the best people, keep hold of valuable employees, and build a workplace where everyone excels.
Want to know how? Discover Ciphr benefits today. Book your personalised demo or download our factsheet to find out more.
This content was initially published by Niall Munro on Flexgenius.co.uk, a Ciphr company, and has been copied over to Ciphr.
*Avantus, a Ciphr company, does not provide tax or accounting advice. This material has been prepared for informational purposes only. It's not intended to provide and should not be relied on for tax or accounting advice. You should consult your own tax and accounting advisors before engaging in any scheme.