Need to know:
- Supporting employees’ work-life balance improves attraction and retention rates, and makes staff happier, more productive and less likely to take time off sick.
- Reward has flexed to suit this trend, with employee choice key whether it is selecting wellbeing benefits, working hours or time off.
- Mandated returns to the workplace are a challenge but involving employees in any decisions and giving them a reason to return can help.
Everything from reward strategy to the office environment is evolving as organisations look to meet employee expectations around work-life balance. And, while there are plenty of positives for all parties, organisations must manage the risks too.
As employees seek a better work-life balance, employers are adopting a much more fluid approach to work. Jeanette Cook, principal wellbeing and strategic consultant at Aon, says: “Whether it’s nipping out at 3pm to do the school run or taking time out to check on a parent, employers are recognising there’s life beyond the nine to five. Supporting employees’ work-life balance is much healthier.”
The research supports this. The Chartered Institute of Personnel and Development’s (CIPD) Health and wellbeing at work 2025 report, published in September 2025, found that working from home can lower absence and boost productivity. Just over a third (36%) of organisations saw sickness absence rates reduce, while 33% say productivity has increased as a result of homeworking.
Hybrid employees are happier too. Health Shield’s Britain at work report , published in September 2025, found that 74% of those working a mix of home and on-site say they have a good work-life balance.
Changing expectations
Adopting new working patterns has been a seismic shift for employers. Holly Coe, senior reward consultant at Innecto, says: “The pandemic changed everything. People were working from home before the pandemic but lockdown really opened up the possibilities for employees and employers.”
Being able to balance work and life can support a wide range of employee needs. These include parenting, and grandparenting, responsibilities; caring for an older relative; and household admin such as a boiler service, car MOT or supermarket delivery. Employees are also valuing a blend of professional ambition and personal fulfilment, says Gethin Nadin, chief innovation officer at Benifex. “This is likely driven by a desire for better mental health and pursuing life interests,” he says.
And, with younger workers seeing flexibility as the norm, it is a shift that cannot be ignored. Nadin points to a report by HireBasis, Gen Z in remote work, statistics and trends, published in June 2025, which found that 74% of Gen Z had left, or considered leaving, a job because the remote work policy was not flexible enough. “They see this flexibility as a baseline expectation, not a perk,” he adds.
Shifting reward strategies
Reward strategies have evolved to suit these new expectations. “To attract and retain the best talent, employers must move beyond traditional reward and offer benefits that genuinely support work-life balance,” says Nadin. “They need to empower people to live a richer life, both in and out of the office.”
This is seen most notably in the working hours employees are being offered. Hybrid working, compressed hours and four-day weeks are all gaining traction, says Coe. “Flexible working, but also transparency about what’s available, must be offered as standard,” she says. “If someone prefers to work in the evening after the kids have gone to bed, or at weekends, why not, if they’re achieving the goals?”
Policies around leave are changing too. Sabbaticals and paid time off for study can help balance work and life, while some employers are also relaxing rules around where work can take place to enable employees to extend time away.
Some shifts have been for more practical reasons. With employees no longer in the workplace five days a week, benefits such as onsite gyms and GPs have been traded for gym memberships and digital GP services.
This has fostered a less prescriptive approach on other benefits too. “Organisations are offering more choice through flex platforms but also benefits such as wellbeing wallets where employees choose how they spend their allowance,” says Cook. ”This flexibility helps to ensure that everyone feels valued.”
Work-life benefit support
The changes to working patterns make some benefits more relevant too. Dr Duncan Brown, principal associate at the Institute for Employment Studies, explains: “If an organisation wants to support the needs of all employees, it must have appropriate policies in place around areas such as maternity, paternity and diversity,. This helps to show employees what’s possible.”
These policies can be further highlighted through appropriate benefits and reward. Benefits such as childcare, time off for fertility treatment and menopause support send out strong signals that the employer cares.
Health and wellbeing benefits, especially around mental health, are another key part of the support mechanism. While flexible and hybrid working enable many employees to prioritise life events, some will see it as a means to hide away.
There is also a risk of burnout where employees do not feel appreciated and work longer hours to gain recognition. “Employers must invest in mental health and wellbeing so people feel rested,” says Coe. “Where employees aren’t bumping into each other around the coffee machine, there’s a real danger that everyone becomes just a faceless name.”
Difficult balancing act
More employees may be demanding greater flexibility to help them balance work and life but it is not necessarily the right approach for everyone, including employers. Ian Nicholas, global managing director at Reed, is seeing an increasing number of organisations trying to bring people back to the office. “It’s tricky,” he says. “While some organisations will be using mandated returns to reduce headcount, offering too little flexibility will make it harder to attract and retain people. Candidates usually have valid reasons why they need flexibility.”
There are also plenty of reasons why employers want staff back in the workplace. While there is little evidence of organisations going back to a full week in the office, many employers are trying to rebalance working arrangements with a 50/50 split common, says Brown. “Coming back to the office encourages more teamworking but it’s also good for young people,” he explains. “It’s how they learn.”
But after enjoying homeworking, convincing employees that a return to the office is for their benefit is not easy. Employers, and especially HR, need to be brave and involve employees in any changes, says Brown. “Organisations should explore the different options with employees, piloting different working arrangements to see how they work,” he adds. ”By setting some metrics, such as turnover, employee mental health and sickness absence, an employer can determine what works.”
Organisations also need to rethink the workplace. “The office needs to be more than just a place to do work,” says Nadin. “It should be a hub for connection, collaboration and culture.”
As well as a redesign of the space, employers are offering reasons for employees to be there. Events such as learning workshops, presentations and anchor days are encouraging employees back.
It is also essential that employees are involved in any decisions. “Employers need to do a lot of listening to ensure they create an environment where people want to be,” Nicholas says. “It’s also good to let teams decide which days they want to come into the office and work together. Employers need to give them a reason to be there.”
The days of organisations dictating when and where their employees put in the hours are long gone. Today, giving staff the flexibility they need to balance work and life, is key to building an engaged workforce.
