Balancing essentials with wellbeing: designs that work for today’s workforce

Rising costs, tighter budgets and increased scrutiny on a return on investment are prompting employers to focus on benefits that offer clear, measurable value.

As economic pressures continue to shape workplace priorities, many organisations are reassessing their benefits strategies.

There’s a noticeable shift towards foundational benefits: offerings such as health cash plans and other medical expense insurance, life assurance and income protection. These are seen by some as non-negotiable, especially in uncertain times.

Alongside this, there’s a growing recognition that wellbeing support still matters. The challenge for HR and reward professionals is finding the right balance.

Why the shift is happening

Nearly two-thirds (62%) of organisations are prioritising foundational benefits in their strategy reviews, according to REBA’s Benefits Design Research (2025). These are the benefits that provide financial security and peace of mind, particularly important in a climate where NHS delays and cost-of-living pressures are affecting employees’ access to care.

Income protection is a prime example. Last year, £204 million was paid out in individual income protection claims - a 16% increase on the previous year. With an average payout of £10,000, these policies are proving their worth in helping employees manage the financial impact of illness or injury.

For employers, this reinforces income protection as a core benefit that supports workforce resilience and reduces long-term absence.

Private medical insurance remains a valued benefit, but for many organisations, it’s becoming increasingly expensive to maintain. Some employers are now exploring more cost-effective alternatives that offer meaningful support, such as health cash plans, digital health tools, targeted wellbeing campaigns and early intervention services.

Health cash plans are increasingly see as a flexible and affordable way to help employees manage everyday health costs, such as dental treatment, eye care and therapy services.

Making wellbeing practical and accessible

This is where preventative health services come into their own. Programmes that offer early intervention, such as digital skin cancer screening, virtual physiotherapy, or mental health check-ins, can reduce long-term absence and improve productivity without requiring large-scale investment.

For example:

Digital-first tools like online health tools and virtual consultations reduce barriers to access and help employees engage with support on their own terms.
Targeted campaigns around musculoskeletal health, eye care or oral hygiene can be timed with national awareness days to boost visibility and relevance.
Financial wellbeing workshops and debt support services help employees manage stress and stay focused at work, especially during periods of economic uncertainty.

These initiatives don’t replace foundational benefits; they help employees stay well enough to make use of the core protections in place, and they show that the organisation is thinking beyond the basics.

Designing benefits that reflect real life

Employees don’t experience their health in silos. Mental, physical and financial wellbeing are deeply connected, and benefits strategies need to reflect that. A well-designed programme doesn’t just tick boxes, it supports people through the ups and downs of working life.

For HR and reward leaders, this means:

Reviewing usage data and service insights to understand what employees actually need
Communicating benefits clearly and consistently, especially to remote or hybrid teams
Offering flexibility where possible, so employees can choose the support that suits them

It also means recognising that wellbeing isn’t a luxury. It’s part of the infrastructure that keeps people working, contributing and thriving.

A joined-up approach to value and impact

Balancing essentials with wellbeing doesn’t mean compromising on either. It means designing benefits that are both protective and proactive. Foundational benefits provide security.

Wellbeing programmes provide support. Together, they create a system that helps employees stay healthy, engaged and productive.

For HR and reward professionals, this joined-up approach offers a way to meet business needs while still putting people first. And in today’s workplace, that’s what makes a benefits strategy truly effective.