In today’s competitive job market, employee benefits are a strategic tool for attracting, retaining, and engaging talent. But how do you know if your benefits are truly making an impact?

Our latest Employee Benefits Impact Report reveals how benefits are being used across thousands of UK organisations, offering valuable insights for HR and reward leaders looking to optimise their total reward strategy.

Why Employee Benefits Matter More Than Ever

With rising living costs and increasing pressure on salaries, many employers are turning to benefits as an alternative to pay rises.

The data shows that when done right, benefits can deliver significant value to both employees and businesses.

What’s more, rising National Insurance costs make payrises and bonuses even more costly for the business, while employee benefits delivered effectively provide a much more sustainable way to put more into the pockets of employees, while rewarding, engaging and retaining top talent.

Key Employee Benefits Statistics

Holiday Trading is the most popular salary sacrifice benefit, with 20% of employees typically engaging with the scheme in most organisations, as our data reveals.

Organisations with over 1,000 employees are saving an average of £463,629 per year through Holiday Trading alone, while the average business we analysed is saving around £132,000 annually through effective utilisation of the scheme.

One company we analysed saved £1.2 million in salary and National Insurance contributions by strategically leveraging salary sacrifice benefits such as Holiday Trading, Cycle to Work and the EV Car Scheme.

Cycle to Work schemes continue to grow in popularity, especially with the rise of e-bikes and sustainability goals, with average order values on the scheme increasing by 42% as per our analysis.

Electric Vehicle (EV) leasing is also gaining traction, particularly in the Public Sector as our analysis reveals much higher-than-average engagement rates, as the scheme offers employees a tax-efficient way to drive greener vehicles.

Despite generous offerings, many benefits remain underutilised due to poor communication or lack of awareness, highlighting a key gap for employers looking to maximise the potential of their Employee Value Proposition.

1. Benefits as a Financial Wellbeing Tool With inflation and economic uncertainty impacting take-home pay, benefits are increasingly being used to support financial wellbeing.

Salary sacrifice schemes like Holiday Trading, Cycle to Work, and EV car schemes allow employees to make tax-efficient choices that stretch their income further.

2. Sustainability-Driven Benefits Environmental concerns are influencing benefit choices. EV car schemes and Cycle to Work schemes not only support green commuting but also align with corporate sustainability goals, making them a win-win for employees and employers.

3. Flexible and Personalised Offerings Employees expect benefits that reflect their lifestyle and values.

The most successful organisations are offering flexible benefits platforms that allow employees to choose what works best for them, whether that’s buying extra holiday, getting a new EV, or accessing mental health support.

Increasingly, we’re seeing more employers opt for employee benefits platform that allow them to surface the most relevant benefits and rewards for specific cohorts of employees based on location, seniority and salary, as examples.

This is helping employees avoid decision fatigue and helping employers deliver and promote the employee benefits that are most likely to be utilised by their employees.

The insights from our Employee Benefits Impact Report are helping employers do exactly this, highlighting the benefits most utilised in their industry, allowing them to design and tailor their benefits and rewards offering accordingly, working hand in hand with us at Access to help surface the right benefits and rewards at the right time to the right people.

4. Data-Driven Decision-Making As mentioned, HR leaders are increasingly using engagement data to refine their benefits strategy.

By tracking uptake and usage, they can identify what’s working, what’s not, and where to invest for maximum impact.

How to Improve Employee Benefits Engagement

So, how should HR and Reward leaders utilise these insights to drive greater engagement and close the value gap?

Communicate clearly and regularly: Use onboarding, internal campaigns, and benefit reviews to raise awareness.

Make it easy to access: A user-friendly platform can dramatically improve uptake.

Tailor messaging to different demographics: What appeals to one group may not resonate with another.

Showcase success stories: Real-life examples help employees see the value of benefits in action.

Aligning Benefits with Business Goals

Employee benefits are a clear strategic lever for achieving broader business objectives. From improving retention and wellbeing to supporting sustainability and financial resilience, benefits can play a key role in your organisation’s success.

By aligning your benefits strategy with your company’s goals and using data to guide decisions, you can ensure your offerings deliver maximum value.

Conclusion

The latest employee benefits statistics show that benefits are more than just a nice-to-have—they’re a powerful tool for engagement, retention, and cost savings. But to unlock their full potential, HR and reward leaders must take a strategic, data-driven approach.

Want to dive deeper into the data? Read our deep-dive into the latest employee benefits statistics here: https://www.theaccessgroup.com/en-gb/hr/software/employee-engagement/employee-benefits/statistics-employee-benefits-alternative-pay-rises/

At The Access Group, we’ve been supporting over 2,000 businesses for over 15 years with our comprehensive employee benefits and engagement solutions.

Our comprehensive employee benefits, rewards and engagement offering is also deeply integrated within our wider HR software suite.

Ready to see it for yourself? For more information on how we can help you and your business, get in touch today.

Employee Benefits Impact Report | Access Engage

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