A fifth (22%) of UK employers have no set objectives for the employee benefits they offer, according to research by the Chartered Institute of Personnel and Development (CIPD).
Its Reward survey: focus on employee benefits 2026 report, supported by Everywhen, which surveyed 1,059 reward or HR decision-makers, also found that 77% of respondents link their benefits to at least one objective, with these most commonly aimed at retaining employees (44%) and supporting engagement (37%).
Among those with objectives, just 31% link their benefits to productivity or business performance, and 15% do not review their benefits against objectives to see if they are delivering.
Among employers that carry out reviews, only 33% said their benefits fully meet their objectives.
Of the 75% that provide personal and family benefits, flexible working is seen as the most effective benefit for meeting employer objectives. Despite being among the most common benefits provided, however, just 40% currently offer this.
Charles Cotton, senior reward and benefits adviser at the CIPD, said: “Organisations invest significant time, money, and energy into employee benefits to boost performance, wellbeing, and engagement. What turns benefits from a cost into a genuine strategic asset is having clear objectives that are regularly reviewed. Employers should be acting on employee feedback, or using data such as turnover and team performance, and tracking progress against defined success measures. Without this discipline, employers are fumbling in the dark when it comes to knowing if their benefits are truly delivering for both the business and its people.”
Iain Laws, chief executive officer – health and benefits at Everywhen, added: “Employee benefits are no longer peripheral to the employment deal, they are a central lever for shaping culture, strengthening resilience and enabling people to thrive in an environment where expectations are evolving rapidly. Organisations with a coherent wellbeing strategy consistently deliver more meaningful benefits, and that adds real value to both their employees and their organisation. A workforce that is well looked after is likely to be more engaged and more productive.”
