PIB Employee Benefits have just published Mind the Gap, the third edition of their annual survey mapping the state of employee benefits and the gaps between provision and employee needs.
The report draws on the experiences of 1000 UK employees to explore provision, satisfaction, and the crucial challenges, and for the first time measures the importance of the key factors in career decision‑making. The data points to practical steps employers and HR leaders can take to improve their benefit offering.
What are the key people trends for 2026?
1. Employee dissatisfaction
The upward trend in dissatisfaction signals that “set and forget” approaches no longer work. Employee dissatisfaction with benefits has increased from 20% in 2023 to 26% in 2025. Employers need to reassess, simplify design, and ensure benefits align to current needs rather than legacy provision.
Flexibility and choice are key, giving people benefits they genuinely value – 55% of employees would switch roles for better benefits. Companies should focus on building a package that spans multiple wellbeing pillars; financial, social, mental, and physical. Use surveys and data to track uptake and outcomes, then optimise the programme so it truly supports your workforce and meets employees’ needs.
2. Engagement
One significant finding from this year’s survey showed that benefits are central to career decisions, with 82% of employees stating benefits were an important factor when evaluating job offers. It’s therefore important for businesses to match this demand with simple, accessible benefits so all employees can engage with what they truly value.
However, a third of employees do not access any information about their benefits; suggesting that investment is not making an impact. Implementing benefits technology is one of the most effective ways companies can distribute employee benefits. With in-built communication, easy access, and actionable insights on employee interaction, a technology platform is a great route for maximising the potential of your benefit offering.
3. Financial wellbeing
Nearly a third of employees say money worries affect their productivity, and confidence in retirement remains low – this issue has remained consistent year on year. Additionally, mental wellbeing continues to be the most widespread support area, with 44% of employees reporting that they receive it. The interconnected nature of finances, wellbeing and work means that employers should put greater emphasis on intervention to bridge this gap.
Financial wellbeing should be a priority, combining education and guidance with practical tools and everyday support. Schemes like Employee Assistance Programmes and Medical Cash Plans can also enable earlier intervention and ease the pressures that personal life may place on work.
4. Flexibility and choice
Historically, employee benefits were limited to pensions, medical and life insurance. However, growing employee expectations, diverse needs, and a challenging socioeconomic environment have predicated an expanding benefits market.
A truly impactful strategy recognises the diversity of its workforce and offers a wide range of benefits that cater to various employee needs. The survey found there is a clear push for flexibility and choice in benefits; in 2025, 71% of employees want more autonomy over their package, up from 2023.
Employers are now able to offer an ever‑growing range of benefits, and online platforms add value by housing voluntary options in one place. With 55% of employees willing to switch jobs for better benefits, their impact on attraction and retention is undeniable.
“Many organisations have had a challenging few years, balancing rising costs with talent expectations. It’s easy to fall into a rhythm of renewing your benefits and not reviewing them. Our research proves that now is a good time to look at optimising your programmes – and maximise on budgets.”
– Clare Dare, Head of Specialist Consulting
These insights signal for a comprehensive benefits package, one that is flexible, easy to understand and genuinely useful for its employees. Track effectiveness regularly by monitoring engagement, take‑up and employee feedback, and use those insights to refine and improve. To win the race for talent, organisations must now lead with a proactive, people‑first benefits strategy.
You can read the full survey for further insights and recommendations.
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