Employee benefits stats: trends, costs, and opportunities 2025

The world of employee benefits seems to be in a constant state of flux. New technologies, changing demand, increasing expectations…

In this resource, we’ve compiled employee benefits stats from the latest business surveys, staff surveys, and market price points – to offer a neat summary for business owners, benefits managers and other decision-makers.

Hooray Health & Protection is an award-winning employee benefits brokerage providing free price comparisons, unbiased advice and admin support to start-ups and SMEs. Contact our friendly team on hello@hoorayinsurance.co.uk or 01273 222805 to review prices and get started. No hard-selling guaranteed!

Note: All sources are fully referenced at the bottom of the page.

Workplace trends and employee demand

Our round-up of employee benefits stats begins with the broader picture. What is it that UK employees really want from employee benefits and how are current circumstances shifting staff priorities?

Recruitment

Recruitment challenges 2024-5

• 69% of employers say competition for well-qualified talent has increased in the past year – CIPD (16)
• 64% of employers who tried to hire experienced difficulty attracting candidates – CIPD (16)
• 56% found it harder to retain talent, and 41% said new hires resigned within the first 12 weeks – CIPD (16)
• 27% of new hires didn’t show up for work the first day – CIPD (16)
• 54% of UK employees now say they plan to stay with their employer – up from 45% in 2022 – WTW (18)
• Only 9% of workers are open to new offers in 2024, down from 21% in 2022 – WTW (18)
• 44% of employers tried to fix retention issues by raising pay, while 47% improved wellbeing support – CIPD (16)

Recruitment challenges 2022

• Job vacancies at the turn of the year hit 1,247,000 – EdenRed [1]
• Almost a third of UK workers are thinking about moving to a new job this year – Slack [2]
• 77% of UK employers are having difficulty filling jobs – ManPower Group [10]
• 69% of global companies report a talent shortage – ManPower Group [10]

Remote working

Remote and hybrid working trends 2024-5

• 67% of companies allow office staff to work remotely – Thanks Ben [20]
• 38% of UK workers are hybrid, working from home at least once per week to save money – Health Shield (17)
• 42% of employers say hybrid/remote working increases engagement, and 45% say it increases retention – CIPD (16)
• 74% of businesses now advertise at least some roles as open to flexible working – CIPD (16)

Remote and hybrid working trends 2022

• 36% of working adults are now working from home at least once a week – EdenRed [1]
• 73% of organisations expect employees to always be at the workplace – ManPower Group [10]
• 19% of organisations expect employees to adopt a hybrid way of working, and only 6% expect fully remote working – ManPower Group [10]
• The demand for remote working arrangements are nothing new. A 2019 LinkedIn survey found that 82% of workers wanted to work from home at least once a week, while more than half (57%) wanted to work from home at least three days a week – LinkedIn [11].

Financial wellbeing

Financial wellbeing 2024-5

Money worries aren’t just personal but also affect how people work. When pay doesn’t go far enough, the pressure shows up in performance and health. Employers who can offer targeted financial wellbeing support are more likely to see increased engagement and performance.

• 76% of employees have reduced their spending on routine healthcare – Health Shield (17)
• 54% say financial stress is affecting their job performance – Health Shield (17)
• 27% of men worry about money every day, compared to 39% of women – Health Shield (17)
• 44% fear job loss, and 62% worry about when the cost-of-living squeeze will end – Health Shield (17)

Financial wellbeing 2022

Financial wellbeing is considered one of the issues most neglected right now. The current rise in the cost of living is putting more and more pressure on everyone, making it an important point of focus right now.

• 65% of employees now stress the importance of financial wellbeing to help combat the rising cost of living, housing, travel, childcare, and inflation – CiPD [3]
• Almost half (45%) of UK adults lack the confidence to manage their day-to-day finances and 35% feel worried when thinking about their financial situation – MaPs [12]
• Only 11% of companies actively focus on financial wellbeing, compared with 57% which focus on mental wellbeing – CiPD [13]

Staff health & wellbeing

Staff health & wellbeing challenges in the UK 2024-5

Every good employer wants to see their staff happy and healthy. Yes, there are hard-nosed business reasons, but when people spend so much of their time working, it’s only right that an employer gives them the support they need.

• Stress, depression or anxiety accounted for 16.4 million days lost due to work-related ill health, and musculoskeletal disorders were responsible for 7.8 million days lost in 2023-24. – ONS [24]
• 6 sick days and 4 mental health days were taken per employee in 2024 – Health Shield (17)
• 41% are skipping meals to cope with rising costs – Health Shield (17)
• 61% of Generation Z employees would consider leaving their current job for better mental health benefits. – SHRM (9)
• 27% of employees prefer team activities, such as walking meetings or book clubs, to boost their mental health, and 27% enjoy stress management breaks. – ADP Research Institute (10)

Staff health & wellbeing trends in the UK 2022

Below we’ve listed some of the health issues affecting employees and businesses in the UK.

• More than 800,000 people experienced work-related stress, anxiety, or depression in 2021 – EdenRed [1]
• 1 in 4 UK employees report having a physical health condition – PHE [14]
• 1 in 3 employees with a long term health condition have not discussed it with their employer – PHE [15]
• 131 million days are lost due to sickness every year. Top 3 causes are: minor illness (34.3m days), musculoskeletal problems (28.2m days), and stress, depression and anxiety (14.3m days) – PHE [15]

Employee benefits demand and satisfaction

Most popular employee benefits 2024-25

Engage Health Group [25] commissioned a survey of gambling industry employees to discover which employee benefits were most important to them. Their priorities were:

• Health insurance 38%
• Life insurance 14%
• Extra holiday 11%
• Remote working: 10%
• Gym discount: 8%
• Dental 7%
• Income protection 6%
• Generous pension scheme 6%

Most popular ‘green’ benefits 2024:

According to a survey by The Electric Car Scheme [26], these are the most popular ‘green’ benefits:

1. Free EV Charging 45.2%
2. Remote Working 38.5%
3. EV Salary Sacrifice Schemes 37.1%
4. Green Office Initiatives (e.g., recycling and composting programs) 27.2%
5. Cycle to Work Scheme 25.6%
6. Public Transport Subsidies 25.0%
7. Sustainable Lunch Options 25.0%
8. Environmental Volunteering Days (e.g., tree planting) 20.5%
9. Discounts at Ethical Retailers 20.3%
10. Ethical Pensions 20.3%

Are staff happy with their benefits? 2024-25

• 72%) state that employee engagement with benefit programmes was either ‘low’ (21%) or ‘average’ (51%) – Ben (18)
• Only 37% of companies communicate benefits once a year, with 49% not offering flexibility, making it harder to engage employees – Ben (18)

Most popular employee benefits 2022:

Last year we asked start-up employees to list their top three most-desired benefits [4]:

• 57% of employees chose Business Health Insurance as their top benefit Protection
• 45% of employees chose Group Life Insurance as their top benefit
• 41% of employees chose Extra Holiday Entitlement as their top benefit
• 35% of employees chose Generous Pension Schemes as their top benefit
• 28% of employees chose Retail & Leisure Discounts as their top benefit
• 24% of employees chose Wellbeing Perks as their top benefit
• 22% of employees chose Free/Discounted Gym Memberships as their top benefit

But what of general life priorities? When it came to this question, Engage Health Group discovered that 9 in 10 employees place ‘health’ as their top life priority (including personal and family health) [5].

But there’s also a growing demand for mental health support. 46% of employees want better mental health and wellbeing support (EdenRed [1]). Meanwhile, 57% of start-up employees said having access to mental health services would most effectively support mental wellbeing, according to our own research.

Are staff happy with their benefits? 2022

• 64% say their employer needs to do more to support a better work/life balance – EdenRed [1]
• Only 18% of employees believe their employer is understanding their needs, suggesting a lack of monitoring from the employer – EdenRed [1]
• 88% of start-up employees felt their benefits are aiding their sense of wellbeing – Hooray [4]
• 77% of start-up employees said they were happy with their employee benefits – Hooray [4]
• 1 in 3 employees feel health and wellbeing is not a business priority and not promoted by management – Engage [5]

These employee benefits stats highlight the wide range of needs that businesses must cater for. Will you be up to the challenge of adapting to their demands?

What benefits are businesses providing?

Knowing what your employees want is the first step toward establishing the best possible benefit scheme. But, have businesses been listening? Below we’ve listed the latest employee benefits stats which reveal what’s being offered and whether the recipients are happy.

What businesses are offering in 2024-25:

To keep pace with a changing workforce, employers are getting more creative, developing people from within, tweaking benefits, and focusing on what really matters to candidates. And shifting employee needs, employers are doubling down on in-house development, sector-specific hiring, and flexible packages.

• Businesses facing recruitment issues are improving pay and benefits to attract and retain staff – CIPD (16)
• Only 24% of companies focus on eco-friendly benefits. Businesses who make this a priority will stand out amongst Gen Z employees, who will make up 27% of the global workforce in 2025. – Thanks Ben [20]
• Foundational benefits increased in 2024, with life insurance up 115% and medical insurance up 105%. – Thanks Ben [20]
• Businesses should provide flexible care support that addresses both eldercare and childcare needs. This will accommodate the four generations in the workforce, including the 1.4 million workers aged 65+. – Thanks Ben [20]
• More businesses in 2025 are offering salary sacrifice schemes, where employees give up part of their pay in exchange for benefits like healthcare, pensions, or education support. This saves money for both employers and employees. – Thanks Ben [20]

The good news for businesses 2024-25:

• 74% of organisations say flexible and hybrid working has helped improve engagement and retention – CIPD (16)
• 76% of employees with choice in benefits would recommend their employer as a good place to work – WTW (18)
• 56% of organisations developed more talent in-house in the past year to meet skills needs – CIPD (16)
• 24% of gambling industry employees were happy with their employee benefits offering, while more than half (53%) were satisfied – Engage Health Group [20]

The bad news for businesses 2024-25:

• 37% of businesses only talk about benefits once a year, so many employees don’t know what’s available. – Thanks Ben (7)
• Even though most companies say it’s a priority, 72% rate their engagement as just ‘low’ or ‘average’. – Thanks Ben (7)
• 70% don’t use a single platform to manage benefits, making things harder for both HR and employees. – Thanks Ben (7)
• Only 17% of companies have a global benefits plan. – Thanks Ben (7)
• 49% of employers don’t offer flexible or personalised options, which can leave employees feeling unmotivated. – Thanks Ben (7)

What businesses offered in 2022:

• 93% of start-up employees (surprisingly!) said they were receiving employee benefits – showing how new businesses are recognising the importance of employee benefits to the – Hooray [4]
• 45% of employees said they were offered enhanced pension contributions – Engage [5]
• 45% of employees also said they were offered flexible working options – Engage [5]
• 78% of employees reported they were being consulted about their employee benefits -Hooray [4]
• 88% of employees said their benefits aided their sense of wellbeing – Hooray [4]

The bad news in 2022

• Only 18% of employers have a financial wellbeing policy in place (though 78% say they offer Employee Assistance Programmes, and 41% are offering free financial education, guidance, or advice) – CiPD [3]
• 1 in 3 employees said their employer was not interested in their mental and physical wellbeing – up to 44% when discussing financial wellbeing – Engage [5]
• 1 in 3 employees are saying they haven’t been provided with sufficient support for their mental, physical, and financial wellbeing – Engage [5]

The rising awareness of the cost-of-living crisis and how employers are reacting 2022:

According to EdenRed [1]:

• Over 50% of employers said challenging this crisis is either their first or second priority
• Just over 55% of employers say they are going to review pay/salaries
• 42% of employers say they will reassess their current employee benefits offerings
• 12% of employers will be introducing new policies/support targeting financial wellbeing

What impact do employee benefits have on business?

Everyone knows the theory: employee benefits can boost retention and recruitment efforts, reduce absenteeism levels, improve productivity and boost all-round team spirit.

But what’s happening in reality?

Business impact in 2024-25

• 44% of employees say they’re staying with their current employer because of the benefits package – WTW (18)
• 39% would leave their current employer for better benefits elsewhere, even with no pay increase – WTW (18)
• 61% of Gen Z say they’d seriously consider leaving their job for better mental health benefits – SHRM (9)
• 37% chose their current employers specifically for their benefits package – WTF (5)

Business impact in 2022

• 8 in 10 employees agreed that the right employee benefits offerings were a very important factor when deciding on joining a new company – Engage [5]
• Only 2% of start-up employees said having a comprehensive employee benefits scheme wasn’t an important aspect of making a business attractive – Hooray [4]
• 88% of start-up employees feel their employee benefits are aiding their wellbeing due to the wide range of options on offer – Hooray [4]
• 8 in 10 employees said being able to work flexibly would significantly boost their work/life balance – Hooray [4]
• 55% would consider moving elsewhere for a more competitive benefits package. Nine out of 10 employees take the benefits package into account when considering a new job and more than a third (37%) would move roles to access specific benefits not offered by their current employer  – Boundless [7]

Need help piecing together your employee benefits scheme? Contact the award-winning brokers at Hooray Health & Protection. Simply call us on 01273 222805 or use the chatbox for FREE quotes and advice.

How much do employee benefits cost?

These employee benefits stats reveal the cost of various employee benefits, including Company Health Insurance, Business Life Insurance and other health and protection policies.

The cost of Business Health Insurance 2024:

Business Health Insurance premiums vary hugely depending on a range of factors. AXA estimates premium costs for a team of six employees with ages ranging between 25 and 60 living in Guildford [27]:

• An average of £9.72 per employee, per month for a basic cover plan covering diagnostics, therapies and an Employee Assistance Programme
• An average of £35.17 per employee, per month for added outpatient support, including more serious procedures and surgeries
• An average of £55.30 per employee, per month for all of the above plus mental health support, help with chronic conditions and more choice over when and where you’re treated

The average cost of employee benefits 2022:

According to research by Boundless [7]:

• Just over a quarter (26%) of UK organisations have a monthly benefits budget of between £101-£150 per employee
• A further quarter allocate £151-£200
• Just under a quarter (23%) allocate more than £201 per employee.

Group protection insurance costs 2021

Our 2021 survey revealed average costs for new-to-market businesses according to insurance providers Canada Life:

• Group life insurance premium – £1,316

(39% offered a payout of 4x the employee’s salary)

• Group critical illness premium – £2,020

(58% offered a payout of 75% of an employee’s salary)

• Group income protection premium – £3,042

(45% opted to pay a flat amount rather than a multiple of an employee’s salary)

Health insurance costs 2022

According to data gather NimbleFins [6], the typical cost of small business health insurance on a per-employee basis is around £45 a month or £540/year. Remember, this price varies wildly depending on age group, medical history and number of people included in the scheme, among other factors,

Employee Assistance Programmes (EAPS) & benefits platforms costs 2022

The EAPA [8] has revealed that the price of an Employee Assistance Programme can vary from:

• £3.50 per employee, each year for a company of 2000 staff, to
• £8 per employee, each year for a company with 500 employees

According to data collected by TechRound [9], an employee benefits platform can start from around £4/month per employee.

Need one-to-one assistance?

While it’s great to learn about general trends and price points, there’s nothing quite like personalised assistance. At Hooray Health & Protection, we offer FREE one-to-one advice and quotes for small businesses looking to introduce or review an employee benefits scheme. Give us a call on 01273 222805 or email hello@hoorayinsurance.co.uk

References:

1. EdenRed survey – ‘Five key challenges HR will face in the year ahead’ – 2022
2. Slack survey – ‘Great resignation continues’ – 2022
3. CIPD – ‘Reward management survey’ – 2022
4. Hooray Health & Protection – ‘What Workers Want: Employee Benefits Survey Start-up Edition’ – 2021
5. Engage Health Group ‘Work, Health and Wellbeing: The employee perspective’ – 2022
6. NimbleFins – Average cost of small business health insurance – 2022
7. Boundless – Global Employee Benefits Guide – 2022
8. EAPA – Employee assistance in the UK
9. TechRound – Top 10 Employee Benefits Schemes and Discounts – 2022
10. ManPower Group – Employment Outlook Survey – 2022
11. LinkedIn/Finances Online – LinkedIn Survey – 2019
12. Money and Pensions Service – 24 million UK adults don’t feel confident managing their money – 2021
13. CIPD – Financial Wellbeing: An Evidence Review – 2021
14. Public Health England (PHE) – Health of UK Employees – 2014
15. Public Health England (PHE) – Guidance: Health Matters – 2019
16. CiPD – Resourcing and talent planning report – 2024
17. Health Shield – Britain at Work Report 2025 – 2025
18. WTW – Global Benefits Attitudes Survey 2024 – 2024
19. Ben – Benefits Benchmarking Report – 2024
20. Ben – Global State of Benefits Report 2024 – 2024
21. SHRM – SHRM research – 2023
22. ADP Research Institute – People At Work 2023 – 2023
23. Ben – Salary Sacrifice Guide 
24. ONS – Labour Force Survey – 2023/24
25. Engage Health Group – Gambling Industry Employees Reveal All 2024 – 2024
26. The Electric Car Scheme – Electric Car Scheme UK employee survey – 2024
27. AXA Health – How much does health insurance cost? – 2024