Why is sick pay the benefit employees value most?
If you asked employees to name the benefit they value most, would you expect company sick pay to come out on top?
In Ciphr’s latest research, The benefits employees really want (2026), 68% of UK employees said paid sick leave, or company sick pay, was important to them. It ranked ahead of inflation-matching pay rises, flexible working, pension contribution matching and extra holiday.
Sick pay also topped Ciphr’s ranking four years ago. So why does it continue to matter so much?
Can I afford to be ill?
For an employee who becomes unwell, the question is not only whether they are able to work. It may also be whether they can afford not to.
Statutory Sick Pay became more accessible in April 2026, with entitlement starting from the first full day of sickness and the previous lower earnings threshold removed. But for many employees, relying on statutory provision can still mean a significant drop in income.
Enhanced company provision is far from universal too. Ciphr’s research found that 56% of employers surveyed offer paid sick leave to all staff.
That helps explain why company sick pay matters so much. It is not just about being paid when you are off ill; it is about knowing your income will not suddenly drop at the same time as you are dealing with a health problem. For employees with mortgages, rent or childcare costs, that financial reassurance can be hugely valuable.
It matters to employers too. If someone feels they cannot afford to stay at home when they are genuinely unwell, they may come into work anyway. That can mean trying to do a job while feeling awful, taking longer to recover and potentially being less productive while they are there.
So sick pay sits at the intersection of health, financial wellbeing and employee experience.
What does this tell you about the rest of your benefits package?
For reward teams, the finding is also a useful reminder that how often a benefit is used is not the same as how much people value it.
Think about an employee who has never taken a day of sick leave. Their usage data might suggest sick pay has little relevance to them. Ask whether they would be happy to lose it, however, and you may get a very different answer.
The same may apply to life assurance or other benefits designed to protect employees when something unexpected happens.
That matters when budgets are tight. Decisions about what stays, what changes and where to invest should not be based on uptake figures alone.
Ask people what matters – and why
Benefits data can tell HR teams what employees are doing, but talking to employees helps explain why. A short pulse survey could ask which benefits they would be most reluctant to lose, what they value but rarely use, or what they feel is missing. That insight can then sit alongside uptake and engagement data to give HR a much fuller picture.
And there is unlikely to be one answer across the workforce. Ciphr’s research shows priorities changing with age and life stage. A benefits platform such as FlexGenius can help HR and reward teams explore those differences through pulse surveys, targeted communications and engagement data, and use that insight when reviewing the package.
Instead of reaching renewal and asking, “Shall we keep what we had last year?”, there is a more useful question: Are we still spending our benefits budget on the things our people value most?
Sick pay is only part of the story
Would your employees put sick pay first or would they choose something completely different? And, most importantly, do you know why?
Ciphr’s full research explores what employees value most, where expectations and employer provision differ, and how priorities change across the workforce.
Download the full report here: The benefits employees really want.
Supplied by REBA Associate Member, Ciphr Benefits (formerly Avantus)
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