5 must-know benefits trends for the year ahead
Benefits have become a defining part of the employee experience – and a critical lever of organisational performance, according to Benifex’s Big Benefits Report 2025/26.
Below, we explore five trends shaping HR and reward strategies for 2026, based on insights from 3,450+ employees and HR leaders across seven regions and 12 industries, and what they mean for employers trying to stay ahead.
1. Benefits are now make or break
Employees aren’t simply comparing salaries anymore; they’re assessing how well an employer can support their financial security, protect their health and wellbeing, and help them balance the demands of life and work. It’s why 81% say benefits matter when choosing a new employer, rising to 85% when deciding whether to stay. For many, benefits have become the deal-maker – or deal-breaker – in career decisions.
The shift is global. In Southeast Asia, India and the U.S., the number of employees who say benefits matter more now than two years ago reaches between 80% and 85%, signalling a sustained rise in expectations across diverse labour markets. And in highly competitive sectors such as technology, benefits have become a defining differentiator in attracting and retaining talent.
2. Benefits are fuelling productivity and growth
One of the most striking trends in this year’s research is how clearly HR and reward leaders now link benefits to business performance.
Nearly three-quarters (74%) of global leaders, and 84% in the UK, say benefits provision is driving productivity and growth. That’s a radical shift from just a few years ago, when benefits were more often viewed as a cost centre than a growth lever.
Improvements are showing up across the people agenda. In the last 12 months, organisations report measurable impact on employee wellbeing, engagement, motivation, retention and recruitment. But productivity is the standout metric – rising as employees feel more secure, more supported and more able to focus on the work that matters.
This change has been accelerated by better technology and sharper data. Employers can now more accurately see which benefits are being used, where investment is generating value, and where adjustments need to be made. The result is a more strategic, evidence-led approach to benefits: one that ties directly into business outcomes.
3. Benefits are changing lives
Beyond the productivity story lies something equally important: benefits are genuinely transforming people’s daily lives.
More than two-thirds (69%) of employees say their benefits are having a positive impact, whether that’s improved wellbeing, greater financial stability or simply feeling more protected and reassured.
That impact shows up in different ways around the world. In India, employees say their families feel significantly more protected thanks to expanding cover options. In Southeast Asia, generous wellbeing and leisure allowances mean many feel financially better off. In the UK&I, employees point to higher productivity as the biggest outcome of benefits. And in the U.S., peace of mind tops the list.
4. Employees are willing to spend their own money on benefits – to a point
One of the most nuanced findings in this year’s report is that 47% of employees globally say they’re willing to put more of their own salary towards better benefits. This willingness is often tied to financial security, protecting their families, or enhancing their health and wellbeing.
But attitudes vary sharply by region. In India, willingness rises to 80%, reflecting a strong desire for extended protections. In the UK&I and U.S., around half of employees say they would top up their benefits. In contrast, just 30% in the Nordics would do the same – a reflection of robust state provisions already in place.
Despite economic pressures, people continue to prioritise protection. Selections of will writing, critical illness and life insurance have all increased year on year. Employers who support this trend through flex funds or allowances see the highest engagement – iPSL’s introduction of a £300 flex fund, for example, helped drive engagement up to 92%.
At its heart, this trend highlights a truth many organisations are only beginning to act on: employees are willing to invest in benefits – but only if they are well designed, well communicated, and feel genuinely valuable.
5. Employees think benefits are good – but could be better
Despite rising investment and improved experiences, many employees still don’t feel they are making the most of their benefits. Across regions, they’re not confident they fully understand or maximise what’s available. There’s a clear gap between employer intention and employee perception – a “value void” – where organisations believe their benefits are performing better than employees feel.
The biggest challenge? Communication and clarity. Employees want more support in understanding their total reward, guidance on how to choose the benefits that suit them, and simpler, more intuitive technology that makes navigation straightforward.
They increasingly expect benefits to feel personalised to their life stage, needs and preferences – not a one-size-fits-all package.
This is where opportunity lies for HR and reward teams in 2026. Employers who close the perception gap (through year-round communication, smart global platforms, AI-enabled guidance and transparent total reward statements) will unlock far more value from their benefits investment.
Get your copy of The Big Benefits Report
To explore these trends in more depth – including regional insights, sector-by-sector comparisons, and the real stories behind the statistics – download Benifex’s Big Benefits Report. It’s packed with data and practical guidance to help HR and reward teams build benefits strategies that genuinely move the needle in 2026 and beyond.
Supplied by REBA Associate Member, Benifex
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