Employee benefits: An introduction
Learn how to implement various employee benefits as part of a wider reward strategy
Setting clear objectives and reviewing them regularly could help employers unlock even greater value from their employee benefits packages.
Although many UK employers link their employee benefits to at least one business goal, a significant proportion still lack clear objectives. Roughly one in five (22%) have no set goals at all.
Organisations face ongoing pressure to boost productivity, control costs and keep skilled staff. Benefits are a major investment. The CIPD’s Reward survey: Focus on employee benefits 2026 report, supported by Everywhen, shows that clearer goals and more regular reviews could help employers gain more from that spend.
We surveyed more than 1,000 HR and reward decision-makers. We found that 77% link benefits to at least one objective. The most common goals are retaining staff (44%) and improving engagement (37%).
Even when organisations set goals, few link benefits directly to productivity or business performance. Only 31% say their benefits connect to these outcomes.
This suggests some employers may overlook how benefits affect day-to-day performance. For example, financial wellbeing support can ease money worries. Our Good Work Index 2025 shows that financial stress can harm performance at work. Health benefits can help people stay in work while managing health conditions. This can reduce avoidable absence.
The findings suggest that clearer links between benefits and business priorities – including performance and productivity – could increase their impact.
The research also shows room to improve how employers review their benefits.
Around 15% of employers with set goals do not review benefits against them. Among those that do review, only a third (33%) say their benefits fully meet their aims.
This highlights a gap between intent and results. Without regular reviews and clear measures of success, employers may struggle to know if benefits deliver value for money or support business priorities.
Flexible working is a good example. It’s seen as the most effective benefit for meeting employer goals. Among organisations that offer personal and family benefits, 75% rate it highly. Yet only 40% of organisations offer it.
This suggests some employers may want to review their benefits mix and focus more on what works best.
“Setting clear objectives and reviewing them regularly is essential if employers are to get real value from their investment and genuinely support both business and employee needs.”
The report recommends that employers:
These steps can help employers move from offering a wide range of benefits to building a more focused and effective package.
“Organisations with a coherent wellbeing strategy consistently deliver more meaningful benefits, and that adds real value to both their employees and their company.”
Many employers are already aligning benefits with business goals. However, there’s still room to strengthen the link between investment and results.
By setting clear goals, reviewing progress and using data to guide decisions, employers can better understand what works. This will ensure benefits support the needs of both the business and the people who work there.
The full Reward survey: Focus on employee benefits 2026 report, supported by Everywhen, explores the findings in more detail and outlines practical steps to strengthen your benefits strategy.
Learn how to implement various employee benefits as part of a wider reward strategy
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