08 Oct 2025
by Emma Timbrell

Pay vs benefits: With pay constraints continuing, how are benefits balancing total reward?

How a more holistic approach to benefits can support, reward and, ultimately, satisfy your employees.

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The conversation around reward is no longer just about pay, it’s about creating a total package that employees value, even when businesses are under pressure to do more, with less.  

In fact, 96% of employers report being affected by the tight labour market, with 62% focusing on benefits to stand out to talent according to REBA’s Benefits Trends Research (2025).

So how can you enhance employee’s total remuneration when salary growth is off the table? 

This is where technology makes a real difference. Employee benefits platforms allow your business to balance and showcase pay, benefits and recognition in one place, creating a reward strategy that employees see as fair, personal and meaningful. 

Total reward used to be seen in black and white, with salary on a payslip, and a handful of benefits hidden in a handbook - but the picture has changed. With the right tools and approach, reward becomes something much more colourful, engaging and complete. 

For your employees, a joined-up approach reveals the full value of what your business offers as a value proposition. It’s no longer just about the payslip, but about feeling supported, recognised and rewarded as an individual.

For businesses, this shift demands more than just pay; evolving strategies must reflect the rising importance of benefits and recognition to an ever-changing workforce demographic.

A well-designed employee benefits platform brings total reward packages to life by making key elements more visible and accessible. It highlights flexible, tax efficient benefits, supports personal choice through anytime and flexible options, unlocks voluntary benefits, and showcases recognition in a clear, engaging way. 

  • Benefits that give back to employees and businesses: Stretching payroll budgets is a challenge when salary increases are limited. Flexible, tax efficient benefits help by giving employees access to selections like pension contributions, cycle to work schemes and electric vehicle leases that reduce their tax bills. This boosts the value employees get while helping businesses control costs. Including these options in reward strategies allows organisations to get more impact without raising salaries. 
  • Empowering employees to choose: Personalised choice is a powerful way to increase the perceived value of total reward without adding cost. When employees can select benefits and rewards that matter most to their individual needs and lifestyles, they feel more valued and engaged. For example, one employee might prefer extra holiday days to support work-life balance, while another may prioritise access to wellbeing programmes or technology allowances. By offering flexible options rather than a one-size-fits-all package, your business can stretch reward budgets further while making each employee’s experience feel personal. 
  • Unlock choice and control costs with voluntary benefits: Unlocking voluntary benefit options, hosted for selection on a platform, gives employees more control over their rewards without adding cost. These benefits let employees choose benefits that suit their needs, often at discounted rates through corporate deals. By offering choices like extra holiday, gym memberships, or technology purchases, employers provide added value that feels personal and flexible, helping to boost engagement and satisfaction. 
  • A full-colour view of the total package: Total reward statements show the full picture of what employees receive, including the true cost of core benefits that often go unnoticed. Many employees don’t fully appreciate the value of things like pension contributions, group life assurance, or paid time off, yet these benefits play a vital role in their overall compensation and wellbeing. 
  • Attract, engage and retain talent: Being able to show prospective hires the full value of their total reward package really makes a difference. When candidates can see not just their salary but also benefits, recognition, and other perks, it helps them understand the full picture and feel more confident about the offer. This kind of transparency also helps keep current employees engaged and loyal, making it easier to attract and retain the right people. 
  • Education and engagement that add value: The effort your business puts into engagement can make all the difference to how benefits are understood and used. Employee benefits platforms help bring everything together in one place, including solutions that can put more money in employees’ pockets than salary alone, typically linked to financial wellbeing, whether delivered as a benefit or through education. Even when the value isn’t reflected in a total reward statement, the platform reinforces it, showing clearly that these are real, employer-funded initiatives designed to benefit employees.  
  • Recognition that drives culture: Digital tools make it easy to embed both peer-to-peer and top-down recognition, helping to build a culture of appreciation and boost morale without relying on pay increases. When recognition is tied to impactful rewards, like extra holiday, or aligned with company values such as brand values or ESG, it deepens engagement and shows employees their contributions matter, both personally and collectively. 

Technology isn’t just a way to deliver benefits anymore; it’s becoming a key part of smarter reward strategies. Employee benefits platforms give HR teams real-time insights into what employees truly value, which perks are most popular, and how preferences differ across the workforce. 

For People and Reward leaders juggling tight budgets and high expectations, technology is proving to be more than just a delivery tool, it helps with strategic planning. 

The future of reward isn’t one-size-fits-all. It’s a blended approach where salary, flexible benefits, and recognition come together to create something personal and sustainable. 

What used to be a simple black and white payslip, and a basic list of benefits is now a more colourful picture.

For businesses looking to rethink their reward approach, now is the perfect time to explore how tech-enabled solutions can help bring total reward strategies to life.

Supplied by REBA Associate Member, Verlingue

Verlingue – an independent, family-owned Employee Benefits consultant supporting UK and multinational businesses with Retirement, Reward, Healthcare and Protection consultancy and advice.

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