A wave of new research has revealed just how much employee expectations have shifted – and how HR leaders are scrambling to keep up.

New research by Howden Employee Benefits revealed that a whopping 77% of UK small and medium-sized enterprises (SMEs) have plans to revamp their employee benefits.

WorkBuzz’s recent state of employee engagement report found that employee wellbeing is now the top priority for UK HR professionals.

And Zest’s Employee Benefits Report revealed that 71% of employers have seen increased employee demand for wellbeing benefits over the past year.

The evidence speaks for itself: if employers hope to attract and retain talent, address workforce challenges, and tackle economic pressures, they’ve got to show that they understand what employees want – and how to deliver it.

But what does all this research reveal about employee expectations – and what actually works when it comes to workplace wellbeing? Let’s break it down.

Purpose-Driven Benefits: The Surest Way to Boost Employee Wellbeing

Traditional benefits packages focused on financial security – pensions, private medical insurance, and bonuses. These benefits are still important, but today’s employees increasingly expect benefits that reflect their personal and societal values.

For instance, Howden’s research found that 46% of SMEs are expanding mental health support, and 47% are prioritising flexible benefits. More and more employers are providing wellbeing benefits packages, with 14% introducing mindfulness programs in the last 12 months alone (Zest).

But while employers are making an effort to care for their people’s wellbeing, some studies suggest that the vast majority of workplace wellbeing initiatives simply don’t work. An Oxford University study set out to test if employees involved in mental wellbeing interventions at work actually have higher wellbeing. They tested 90 different individual-level mental wellbeing interventions, including mindfulness, resilience and stress management training, time management, and wellbeing apps.

The study found that none of them improved outcomes for employees in the workplace at a collective level – except volunteering.

Paid volunteering is a prime example. Companies that enable employees to give back to causes they care about see higher engagement and retention. Providing time off for volunteering not only enhances wellbeing but also builds a sense of purpose, fostering stronger connections between employees and their employers.

Attraction: Standing Out in a Competitive Market

Talent attraction remains a top-three priority for HR professionals, according to WorkBuzz. With job seekers placing increasing emphasis on employer values, organisations that integrate purpose-driven benefits into their offerings have a competitive edge.

According to Zest’s latest research:

● About two-thirds (63%) of employee respondents agreed that benefits have become more important to them when deciding where to work

● This number rises to 72% among those aged 18-34

● Plus, over half (56%) of employees would leave their current job if another organisation offered them a better benefits package

A strong employee value proposition (EVP) that includes volunteering days, sustainability initiatives, and social impact opportunities signals to potential hires that a company is about more than just profits. This is particularly crucial for attracting Gen Z and millennial employees, who are more likely to choose employers based on shared values.

Retention: Building Loyalty Through Impact

Attracting top talent is just one part of the equation – keeping them engaged and motivated is equally vital. According to WorkBuzz, 42% of employees feel their engagement has stagnated or declined. To combat this, HR leaders are focusing on personalised and meaningful employee experiences.

Paid volunteering and purpose-driven benefits can play a key role here. Employees who feel their organisation actively supports causes they care about are more likely to remain loyal. In fact, research by Benevity shows that employees who participate in corporate giving and volunteering programs are 57% less likely to leave their jobs.

Beyond retention, these programs contribute to a positive workplace culture. Employees who engage in volunteering through work often report feeling more connected to their colleagues, improving teamwork and overall morale.

A Win-Win for Employers and Employees

Purpose-driven initiatives don’t just benefit employees – they can also drive real business impact. Companies with strong ESG (Environmental, Social, and Governance) initiatives and social value strategies tend to see higher employee satisfaction, increased brand reputation, and improved overall performance.

OnHand, for example, helps businesses integrate paid volunteering into their benefits package, making it easy for employees to engage in high-impact missions. By embedding social impact into the employee experience, organisations can create a workforce that is more engaged, fulfilled, and committed for the long haul.

Final Thoughts

The future of work isn’t just about higher salaries or fancier perks – it’s about purpose. As businesses navigate evolving employee expectations, integrating flexible, purpose-driven benefits can be a game-changer.

Help your employees boost their wellbeing and find purpose at work – book a call with OnHand today to get started. 


 

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