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Top benefits for employees in 2026

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Today’s workplace culture demands more than the basics. Offering private medical cover, a pension plan, and free coffee might have been enough years ago, but not anymore. Employees expect benefits that go beyond tradition, delivering real value and improving their quality of life. 

And in a world where true work-life balance feels increasingly out of reach, this matters more than ever. Despite conversations about flexibility and disconnection, the reality is stark: 48% of employees still respond to work emails while on holiday, and 55% of CEOs check emails outside work hours daily. The lines between work and personal time have blurred, leaving people craving support that helps them manage stress, protect their wellbeing, and feel appreciated. 

Add to that the ongoing cost-of-living crisis, where salaries often struggle to keep pace with rising expenses, and it’s clear why employees want more than the basics. They’re looking for benefits that make a tangible difference, financial wellbeing programs, mental health resources, and lifestyle perks that help them balance work and life. 

The good news? Creating a modern, impactful benefits package doesn’t have to be complicated or expensive. In this blog, we share the top employee benefits for 2025 that are practical, cost-effective, and designed to meet the needs of today’s workforce, including: 

- Flexible Working Options 

- Financial Support Benefits 

- Career Progression Benefits 

- Commuter Benefits 

- Health and Wellbeing Benefits 

 Want to get ready for a great 2026 with a benefits package your team will love? 

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Flexible working: more than just a trend 

The popularity of flexible working arrangements has been building momentum for years, and recent UK legislation has only reinforced its importance. As of April 2024, employees can request flexible working from day one, eliminating the old 26-week waiting period. This shift reflects what many of us already know, flexible work options are here to stay, and they matter now more than ever. 

Whether it’s fully remote work, hybrid setups, or flexible hours that allow for different start and finish times, having the freedom to work where and when it suits them best is a top priority for employees today. The numbers back it up: 

97% of UK hybrid or remote workers say they want to keep their current flexible work setup. 60% of employees with remote-capable jobs prefer a hybrid approach, according to Gallup, while around one-third would opt for fully remote work. 

Why flexible working matters to employees, and employers 

For businesses, flexible working isn’t just about keeping employees happy (though that’s a big part of it). It comes with real, measurable benefits: 

Boosts Engagement and Retention: Employees who have more control over their work environment tend to feel more trusted and valued, leading to higher loyalty and lower turnover. 

Improves Productivity: Giving employees the flexibility to work in ways that fit their lives often means they’re more focused and productive. 

Supports work-Life balance: Flexible working helps employees better manage personal and family commitments, which directly impacts their wellbeing and job satisfaction. 

Flexible working in 2026 

In 2026, offering flexible work options isn’t just a “nice-to-have”, it’s essential. Most employees want a mix of remote and office time, allowing them to find the balance that best suits their lives and responsibilities. 

And let’s face it, life is unpredictable. When employees need last-minute flexibility, whether for family emergencies, personal appointments, or unexpected events, having the freedom to adapt shows that your company genuinely supports its people. 

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Financial support: Helping employees thrive in tough times 

With prices climbing on everything from the weekly shop to the monthly rent, everyone is feeling the pressure, and many are looking to their employers for extra support. 

That’s why in 2026 financial benefits that help ease the pressure of cost of living are going to be more important than ever. 

Salary sacrifice schemes and employee discount schemes are an easy and affordable way for companies to support their staff more as prices continue to rise. They help employees buy things they want and need whilst earning cashback or making savings on taxes and National Insurance - which puts a bit more money back in their pockets without raising the company’s wage bill. 

Salary sacrifice schemes are also the perfect benefit for small businesses as they're so cost-effective and in some cases, even cost-positive! 

Here are some of the most popular salary sacrifice benefits and financial benefits that can help make a real difference to your teams lives: 

Green Car savings 

Opting for an ultra-low-emission vehicle through schemes like Green Car Benefit isn’t just good for the planet, it’s a smart financial move. Employees can access brand-new cars at a significantly reduced cost thanks to tax efficiencies and salary sacrifice arrangements. This means lower monthly payments compared to traditional financing, plus savings on fuel and road tax. Over time, these benefits can add up to thousands of pounds, making sustainable travel both affordable and practical. 

Home & Tech salary sacrifice schemes 

Life happens, and sometimes at the worst possible moment. When an essential appliance breaks or a critical piece of tech fails, replacing it can be a financial headache, especially for employees on modest salaries or without access to credit. That’s where schemes like Home & Tech become a lifeline. They allow employees to spread the cost of big-ticket items, like laptops, smartphones, or household essentials, over manageable monthly payments, completely interest-free. This flexibility provides immediate relief without forcing people to dip into savings or take on expensive credit, making it easier to stay connected and keep life running smoothly when unexpected expenses arise. 

Cyclescheme 

Switching to cycling for daily commute isn’t just good for employees health, it’s a major financial win. Compared to driving, employees can save between £1,500 and £2,500 per year on costs like fuel, insurance, parking, and maintenance. Even public transport isn’t cheap, with annual savings of £1,500 to £2,000 when you choose a bike instead. These are significant reductions in fixed monthly expenses, freeing up money for other priorities. And with Cyclescheme, the savings start even earlier: employees can get a new bike, e-bike, and accessories at up to 47% off the retail price, spreading the cost interest-free over 12 months. It’s a practical, sustainable, and cost-effective way to commute, while also cutting your carbon footprint. 

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Cashback rewards 

Cashback cards aren’t just a nice perk, they can make a real difference to employees’ finances. On average, staff using prepaid cards like bYond can save up to £900 per year simply by earning cashback on everyday purchases like groceries, fuel, and dining out. These savings can quietly accumulate in their account, creating a financial cushion for high-pressure times such as back-to-school season for parents or Christmas shopping for gifts. It’s a simple, stress-free way to put money back in employees’ pockets and help them manage rising living costs without changing their spending habits. 

Discounts on groceries, essentials and more 

Benefits such as discounts, like those available through BHN Extras, include online savings and gift card offers with over 90 high street retailers. These perks help employees save not only on everyday essentials like groceries but also on those occasional treats that bring joy and ease stress: a new pair of Adidas trainers, stylish Ray-Ban sunglasses, or family weekend experiences. Little moments that lift the spirit and make spending feel lighter, contributing to overall well-being. 

Why financial benefits are important  

Financial stress is a very real challenge for staff today. In fact, nearly 25% of workers report that financial worries impact their work performance. By offering benefits that help staff better manage the increasing cost of living, you can play a valuable role in helping your teams manage life’s expenses, while showing genuine support for their wellbeing and that you truly have their backs when times are tough. 

To find out more about salary sacrifice schemes or employee discount schemes,  click here to speak to one of our benefits experts about our free benefits program. 

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Career progression: Keep your talent growing 

Do your employees feel like they have a future with your company? If not, they might be considering other options. 

Research shows that 65% of UK employees say a lack of career development opportunities is one of the top reasons they’d consider leaving. For companies that want to keep their people engaged and motivated, creating clear pathways for career and personal growth can make all the difference. 

Investing in career development isn’t just about retaining employees; it’s about fostering a culture where people feel they’re learning, advancing, and making a real impact. Providing mentorships, targeted training, educational support, and opportunities to earn professional qualifications shows employees that you’re invested in their growth and future. 

Here are a few impactful ways that you can support your teams career development: 

Mentorship programmes 

A strong mentor can make all the difference in someone’s career. Connecting employees with experienced colleagues offers guidance, insight, and inspiration for their own career journey. Even if you're a small business, don't underestimate the power of the owner or director spending some time with the new recruits! 

Training and upskilling 

With the rise of AI and automation, upskilling and reskilling opportunities help keep employees engaged and at the top of their game. You can create your own targeting training sessions and ask your team what they'd like to learn, too. There's lots of online resources you can use and by providing training, you’re building a team that will just keep on getting better. 

Educational assistance 

Covering the cost of courses, workshops, or professional certifications is a great way to show you’re committed to employees’ long-term success and development. You can do this by supporting additional education outside of the business, offering tuition reimbursement or even setting up sessions internally where people can help educate each other on topics they’re passionate about. 

Why career development is a must for 2026 

In 2026, career development will no doubt be one of the most valuable employee benefits a company can offer. It’s an affordable and powerful way to show your team you’re invested in them for the long-term and a great way of boosting employee engagement. It’s about creating real excitement for the future, for both your employees and the company! 

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Commuter benefits: make the journey easier 

The daily commute can be costly and time-consuming, especially with rising fuel and transport prices. So it’s not surprising that more and more people are feeling concerned about rising travel costs and are exploring alternative ways of getting to work. 

That's where commuter benefits come in. Whether it’s discounts on bikes, support for low-emission cars, or help with train fares, by offering these benefits, you’re not just helping ease the financial burden, you’re helping make their daily journey smoother, healthier, and easier on the environment. 

Here are the top three benefits for commuters in 2025: 

Cyclescheme 

With over 51% of employees now wanting to cycle to work, biking to work has taken off, and with good reason, it’s affordable, eco-friendly, and great for personal fitness. Through Cyclescheme, employees can save up to 47% on bikes and accessories from thousands of retailers across the UK. Whether it’s a standard bike or an e-bike for a little extra boost, this benefit helps your team save money while embracing a healthier commute. The best bit? It's totally cost-neutral for your business.  

Green Car benefit 

With more employees considering electric or hybrid vehicles, Green Car Benefit offers a smart way to support sustainable travel. Employees can access low-emission vehicles at a reduced cost, thanks to a fixed monthly payment taken before Income Tax and National Insurance deductions. This means they can save on fuel costs, cut down emissions, and enjoy a more affordable and greener journey. 

Public transport subsidies 

For anyone who commutes by bus, train, or tube, subsidised transit passes are a great perk. It not only cuts their travel costs but also supports an eco-friendly way of getting to work, which is a win for everyone. 

Why you should go the extra mile with commuter benefits 

For employees, commuter benefits are a small but valuable support that adds up over time. Whether it’s saving on train tickets, encouraging cycling, or helping employees transition to eco-friendly vehicles, these perks are more than just financial relief, they’re a way to show you care about their daily lives. 

These commuter benefits don’t just ease the financial strain on your employees, they also support your company’s sustainability goals, helping to create a workplace that values both people and the planet. Now that’s a true win-win! 

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Health and wellbeing: support inside and outside the office 

Employee wellbeing has become a top priority in recent years and will continue to be a big focus for businesses in 2026 and beyond. 

Supporting mental and physical health is something employees genuinely expect from their employer. In fact, 80% of job seekers now specifically look for companies that offer mental health support, which shows the importance of taking a holistic approach to wellness. 

Here are a few impactful ways to support your team’s health and wellbeing: 

Mental health resources 

Employee Assistance Programmes (EAPs) provide confidential counselling and support, helping employees manage stress, anxiety, and personal challenges. As well as external support, offering paid mental health days and having trained mental health first aiders in the office can make a big difference by offering immediate support to those who need it. 

Physical activity benefits 

Staying active is one of the best ways to boost mood and relieve stress, so consider including fitness perks in your benefits package. With perks like MyGymDiscounts your team can save up to 25% on gym memberships, encouraging them to prioritise physical health. And with Cyclescheme, employees not only save on their commute but also enjoy the mental health benefits of cycling, with 82% of participants saying it helps reduce stress. 

Looking after staff wellbeing in 2026 

Health and wellbeing benefits are essential for building a workplace where people feel genuinely supported and valued. By focusing on both mental and physical wellness, you can create a culture where employees know their health matters to the company. 

This investment in wellbeing doesn’t just lead to healthier employees; it builds trust, boosts engagement, and creates a resilient, positive work environment where people can, and will, thrive. 

Ready to build a benefits package that works? 

In 2026, offering the right benefits is essential to keeping your team happy and motivated. From flexible working to cost-of-living savings, career development, and wellbeing programs, each benefit adds to a happier, healthier, and more engaged team. 

By providing perks that truly support your employees, both inside and outside the office, you’re creating a workplace where people feel valued, motivated, and ready to grow. 

If you’re ready to boost your benefits strategy ready for 2026, we’re here to help; click here to speak to one of our benefits experts about our free benefits program.  

Employee Benefits FAQs

Why is offering a comprehensive employee benefits package so important in 2025? +

A well-rounded employee benefits package is essential for attracting and retaining top talent. In today’s competitive job market, employees expect valuable benefits that support financial security, wellness, and career development. Offering competitive benefits can help position your company as an employer of choice, driving employee loyalty and increasing retention rates.

How can flexible working options, like hybrid work, impact my business? +

Hybrid work options provide flexibility, which can boost team morale and reduce employee turnover. Many office workers appreciate the control hybrid work offers over their schedules, leading to more productive employees who feel valued and supported. Flexible work arrangements have been shown to contribute to a positive work environment and employee loyalty.

What types of commuter benefits are most effective in 2025? +

Commuter benefits like the Cyclescheme and green car options help employees save on commuting costs while promoting sustainable practices. These are common employee benefits that ease financial strain, support team morale, and contribute to an office environment focused on eco-conscious values.

How can I help my employees manage rising living costs and maintain financial security? +

Offering employee discount schemes, cashback programs, and salary sacrifice options can help employees better manage their daily expenses and improve their financial security. These benefits add significant value without extra cost to your business and enhance employee loyalty by showing that you care about their financial well-being.

What are some effective ways to support employee mental health? +

Wellness benefits like Employee Assistance Programmes (EAPs), mental health days, and access to resources like syd, an AI-powered wellness app, support employees’ mental health both inside and outside of the office environment. These benefits show genuine care for employees' wellbeing, contributing to a positive work environment and higher employee retention.

How can a professional development programme benefit my business? +

Offering a professional development programme, which includes mentorship, training, and internal promotions, demonstrates a commitment to employee growth. Employees who feel supported in their career paths are more likely to stay with the company, resulting in reduced turnover and higher retention rates. Development programmes are a key component of any valuable employee benefits package.

What is salary sacrifice, and how can it benefit my employees and business? +

Salary sacrifice allows employees to set aside part of their salary pre-tax for specific benefits, such as transportation or wellness. This boosts financial security for employees without adding extra cost for your business. By including salary sacrifice options, you’re able to offer valuable benefits that enhance financial wellbeing while maintaining a competitive edge.

How can I create a benefits package that appeals to a multi-generational workforce? +

Building a diverse benefits package with options like hybrid work, wellness benefits, and a robust employee discount scheme can engage employees of all ages. For example, younger employees may prioritise professional development, while others may value financial security or wellness programmes. A well-balanced benefits package contributes to a positive work environment, meeting the diverse needs of your team.

How do I measure the effectiveness of our benefits package on employee morale and retention? +

Regular employee feedback, engagement surveys, and tracking employee retention rates can give you insights into how well your benefits package is working. Additionally, monitoring participation in programmes such as wellness benefits or employee discount schemes helps you understand which benefits are most valuable to your team, contributing to overall employee satisfaction.

What’s the best way to communicate our employee benefits package to improve morale and engagement? +

Effective communication is essential to ensure employees understand and utilise their benefits. Consider ongoing updates via email, dedicated benefits workshops, or an easily accessible online portal. Clear communication about benefits, especially during onboarding, can improve employee morale, drive engagement, and enhance your reputation as an employer of choice.

How does career development training benefit my current workforce and support employee recruitment? +

Career development training and personal development programmes are valuable tools for nurturing talent within your current workforce. Offering these as an additional benefit not only supports employees’ growth but also makes your company more appealing to new recruits. Development training is an attractive benefit that fosters loyalty, helping retain skilled workers while positioning your company as a top choice for prospective employees.

What are some cost-effective ways to support employee wellbeing and engagement? +

Incorporating wellness initiatives, such as mindfulness sessions, into your employee benefits package is a cost-effective way to boost morale and engagement. These sessions, along with personal development training and other benefits for workers, show that you’re committed to their overall wellbeing. These types of additional benefits help foster a supportive and positive work environment, which in turn enhances employee satisfaction and productivity.