In 2025, employees will prioritize long-term financial stability. Increased employer pension contributions are the most desired benefits.
According to a survey by Zest, a provider of employee benefits technology, 30 percent of employees favor higher pension contributions. This figure rises to 41 percent for those aged over 55.
Employers must contribute at least 3 per cent of their employee’s salary to the pension fund. This makes up a minimum combined contribution of 8 per cent when paired with employee contributions. This percentage could be increased to allow employees to pay for their current living costs without having to compromise their retirement savings.
Health Benefits are a Priority
The second most popular benefit is private medical insurance. 29 percent of employees are interested in including it as part of their benefits package. The demand for private medical insurance is especially strong among employees aged over 55. 39 percent of them consider it a priority.
Private medical insurance sponsored by employers is becoming more popular due to the NHS waiting list of nearly 8 million people and the rising costs of private healthcare. The top benefit last year is still a key factor when employees are evaluating their options.
Cost of Living Support and Well-Being
Employee priorities are still influenced by economic pressures. 23 percent of employees want employers to pay for energy costs at home. This is especially relevant in light of the recent 1.2 percent rise in the cap on energy prices. A similar proportion of workers favour discount vouchers at high-street shops and brands to reflect the impact of rising prices on household budgets.
Another area of interest is flexible wellbeing allowances. 19 percent of employees are interested in vouchers for wellness activities. Paid mental illness leave is also becoming more popular, with 16 per cent of employees saying that it would be a welcome addition to their benefit package.
Employee Expectations
Matt Russell, the CEO of Zest said that economic challenges are continuing to play a part in this landscape. Employees look for financial support on a long-term basis from their employers.
Russell stated that increasing pension contributions was one of the best ways to reward and attract employees. In a time when many people are forced to use their savings to pay for everyday expenses, employers can help their employees build their retirement pots by increasing pension contributions.
Employers must listen to what benefits their employees value most. This is crucial to boost morale, productivity and give organisations a competitive advantage.
