Employee Benefit programmes are such a well-established part of our working landscape that it is hard to remember that they are a relatively new concept.
For generations, the work contract between employer and employee was a simple financial transaction. Employers paid workers for their time or by the number of items they produced, and neither party expected much more.
Society and working life have changed, and now employers who want to recruit and retain great staff use employee benefits to provide an attractive package beyond the financial transaction.
The development of mandatory employee benefits in the UK
In the UK, a small state pension was introduced in 2011, and the requirement for employers to offer paid holidays started in 1938.
In 1945, the British Labour government introduced the Welfare State. The welfare system continued to evolve during the twentieth century, offering benefits like unemployment insurance, sick pay, more generous state pensions, and paid parental leave.
Although the money for these benefits was mainly provided through National Insurance payments, employers were also expected to contribute and to honour benefits like sickness absence and maternity leave without disadvantaging workers.
The development of optional benefits
As agricultural work and factory-based production transitioned to knowledge-based industries during the late twentieth century, many employers invested heavily in training and developing their workforce. Recruiting and training new employees became extremely costly, making staff retention more important.
Employee expectations in affluent societies also changed. While a good salary is always important, many now focus on the whole benefit package offered by the employer. Some benefits are non-negotiable, and others are features that persuade a worker to choose one employer over another.
Popular optional benefits
The music streaming service Spotify offers female employees egg-freezing to keep their expertise in the workforce longer before they start a family, but most employee benefits are not quite so ambitious.
The most popular benefits in the UK reflect employees’ desires for a good work-life balance and to develop mental and physical fitness. Businesses that embrace this holistic approach to their employees have a happier and more productive workforce.
Top benefits include:
Private Health Insurance
The NHS offers an excellent service, but waiting lists can be a problem, leaving people in pain and unable to carry on with their daily lives easily.
Employees love the reassurance of a speedy diagnosis and treatment, and employers benefit from reduced absenteeism.
Gym membership
Working out at the gym is a great way to stay fit and healthy, but gym fees can be prohibitive.
Employee benefits like the Enjoy Benefits Salary Sacrifice Gym Membership help employees spread the cost with minimal cost to the employer.
Flexible working
The tyranny of the nine-to-five may finally be over, with more and more employers offering flexible working.
Employees love to flex their day to accommodate child or elder care or to allow them to fit in other activities during their day.
Hybrid working
The COVID lockdowns of 2020 proved that working from home can be successfully implemented in many industries.
The hybrid model, working from home for part of the week, is now commonplace. According to ONS data, more than a quarter of British adults had a hybrid working pattern in the Autumn of 2024. Working from home can save an expensive and stressful commute and, like flexible working, can reduce the strain of combining family life with a demanding job.
Health and Wellness
A much higher premium is now placed upon mental health and wellness in the workplace as society has realised that a happy worker is more motivated and productive.
Many employers find staff enthusiastic about benefits like our Health and Wellbeing Programme.
Benefits that address risk
Workplace pensions, life assurance, private medical care, critical illness cover, and income protection all address our concerns about protecting our income and providing for our families if things go wrong.
Enjoy Benefits
Our benefits programmes can improve your employees’ lives and help you attract and retain the best workers.
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