One in five employers say they have no clear objectives for their employee benefits

Roughly one in five UK employers (22%) have no set objectives for the employee benefits they offer, limiting their ability to assess whether they support key outcomes such as performance, engagement and retention at work. 

The CIPD’s Reward survey: Focus on employee benefits 2026 report, supported by Everywhen, finds that while the majority of employers (77%) do link their benefits to at least one objective - with these most commonly aimed at retaining employees (44%) and supporting engagement (37%) - one in five (22%) employers are offering benefits without a defined objective, which will make it difficult for them to measure their impact.  

Even among those with objectives, fewer than a third (31%) link their benefits to productivity or business performance. The findings suggest that employers could be missing an opportunity to use benefits to drive performance at a time when improving UK productivity remains a national priority. 

Benefits can drive performance through, for example, supporting employees’ financial wellbeing, as previous CIPD research* shows that money worries can negatively affect employees’ ability to perform at work. Meanwhile, health benefits could support employees to remain in work while managing any health conditions they have, avoiding unnecessary time off or long-term absences, which have an impact on individuals and employer wage bills. 

Despite this, many employers continue to offer a broad range of benefits, with the most common including flexible working, pay at or above the voluntary living wage, work social events and drinks and snacks. 

The report recommends that employers set clear objectives for employee benefits and review them regularly. This will enable them to assess whether their investment is delivering value for money and supporting business priorities as well as employee needs.

Charles Cotton, senior reward and benefits adviser at the CIPD, the professional body for HR and people development, said:

“Organisations invest significant time, money, and energy into employee benefits to boost performance, wellbeing, and engagement. So, it’s worrying that one in five don’t actually know what they want their benefits to achieve. That means a sizeable chunk of spend risks lacking clear direction or measurable impact.

“What turns benefits from a cost into a genuine strategic asset is having clear objectives that are regularly reviewed. Employers should be acting on employee feedback, or using data such as turnover and team performance, and tracking progress against defined success measures. Without this discipline, employers are fumbling in the dark when it comes to knowing if their benefits are truly delivering for both the business and its people.”

Iain Laws, CEO – Health & Benefits, Everywhen, said:

“Employee benefits are no longer peripheral to the employment deal - they are a central lever for shaping culture, strengthening resilience and enabling people to thrive in an environment where expectations are evolving rapidly. 

“Organisations with a coherent wellbeing strategy consistently deliver more meaningful benefits, and that adds real value to both their employees and their company. A workforce that is well looked after is likely to be more engaged and more productive. 

“At Everywhen, we see daily how a thoughtful, human‑centred and data‑driven benefits approach can transform organisational outcomes and individual lives.”

The research from CIPD and Everywhen also reveals some weaknesses in how benefits are currently reviewed and evaluated: 

• Around one in seven (15%) employers with objectives don’t review their benefits against them to see if they are delivering 
• Among employers that do carry out reviews, only a third (33%) said their benefits fully meet their objectives 
• Flexible working is seen as the most effective benefit for meeting employer objectives (75% of organisations that provide personal and family benefits). Despite it being among the most common benefits provided, only 40% of organisations currently offer it - highlighting a clear gap between what works and what employers offer.

*Source: CIPD Good Work Index 2025 and Financial wellbeing: an evidence review 

Read the report