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What should you expect from your employer? Employee benefits explained

Employee expectations have moved far beyond a monthly payslip. Today, people want a company culture of support, flexibility, and real help with everyday costs from their work environment. This is reinforced by the fact that 60% of employees consider benefits and perks to be a significant factor when deciding whether to accept a job offer.

If you’ve ever wondered “what are employee benefits?” and whether you’re getting the most out of them, you’re not alone. Many employees don’t realise just how much extra value they could be getting from their workplace.

This guide breaks it all down and covers what employee benefits are, the types that are most beneficial, and how platforms like BHN Extras can help you make the most of them with your employer.

What are employee benefits?

Employee benefits are the extras your employer offers on top of your salary. They’re designed to support your financial, physical, and mental wellbeing, and they can make the difference between a typical employment package and a competitive one.

These can range from essentials like pension schemes and paid leave, to perks that make everyday life more affordable and manageable such as discounts and cashback, flexible working options, or help spreading the cost of larger purchases.

These are the two main categories of employee benefits:

1. Statutory benefits: the basics

The UK statutory benefits are the legal minimum your employer must provide. These are:

  •  Workplace pension scheme
  •  Paid annual leave
  •  Statutory sick pay
  •  Parental leave (maternity leave and paternity leave)

These are important, but they’re just the base level.

2. Voluntary benefits: the extras that matter

Voluntary or additional benefits are the extra perks employers can choose to offer. These are often the ones that make a real difference to your day-to-day life, such as:

  •  Cashback or discounts on shopping
  •  Remote or hybrid working options
  •  Gym and fitness centre discounts
  •  Salary sacrifice to help with larger purchases
  •  Mental health and wellbeing support programmes

These benefits for employees are all about helping you manage your finances, health, and mind throughout both your working and personal life.

The importance of benefits for employees in the modern workforce

From groceries to energy bills, everyday costs add up fast. In fact, according to 2025 research, nearly half of employees (46%) struggle to keep up with their bills to some extent. That’s why benefits for employees are becoming essential, and why every employee should look deeply into what benefits their employer offers to ease their day-to-day living costs.

Alongside easing financial pressure and helping your salary go further, a strong benefits package can improve your work-life balance and support your overall wellbeing... but not all benefits are equal. Some schemes are complicated, hard to access, too specific, or simply not relevant to many employees. When done right, however, employee benefits like BHN Extras deliver a real, positive impact with zero hassle.

Financial benefits that make a difference

Much of the time, the best benefits for employees are the ones that put money back in your pocket. Not complicated schemes or things you’ll never use. Just simple, everyday savings that ease financial outgoings day after day, week after week, month after month. These kinds of savings-oriented employee benefits to look out for from your employer include:

Cashback on everyday spending

Cashback benefits are there to help you earn money back on your weekly expenses such as food shops, fuel, or online purchases. Some platforms, such as the BHN Extras bYond card, offer up to 15% cashback with a range of trusted and well-known brands, helping employees earn up to £500 cashback a year.

Discounted gift cards

Discounted prices on gift cards are there to help you pay less for the places you already shop at, whether that’s restaurants, retailers, or supermarkets. Better yet, BHN Extras offers discounted gift cards free of charge when your employer signs up.

Salary sacrifice schemes

Spread the cost of bigger purchases (such as bikes or electronics) through salary sacrifice schemes that help you pay monthly rather than laying down the full cost upfront.

Lifestyle and wellbeing benefits to make things easier

The best employers understand that work is only one part of your life, which is why lifestyle, health and wellness benefits are becoming more popular and sought after. Key lifestyle and wellbeing benefits to look out for with your current or future employers are:

Flexible hours and remote options

Flexible working hours, remote working options, and even flexible annual leave are game-changing perks for many employees. They can make a huge difference to your work-life balance if they’re something your employer offers or is open to.

Gym and fitness discounts

With the prices of services constantly rising, any employee benefits package that includes savings on gym memberships and fitness centres is a huge plus for your wellbeing. This includes the BHN Extras MyGymDiscounts, offering up to 25% off on memberships at gyms, leisure centres, health clubs, fitness studios, and bootcamp classes across the UK.

Mental health support and wellbeing days

Whether it’s mental health services or extra wellbeing days, keep an eye out for employee benefits that support your mental wellbeing and give you support (or a little extra breathing space) when you need it.

Benefits to help with savings on larger purchases

Sometimes, the biggest impact comes from help with larger expenses that would otherwise be difficult to afford. These often come in the form of salary sacrifice options, helping you pay for more costly items monthly rather than all in one go, such as:

Bikes and cycling equipment

Many employers offer Cyclescheme, which is a BHN Extras cycle to work scheme that helps employees save up to 47% on a new bike and cycling equipment.

Home appliances or furniture

Salary sacrifices such as the BHN Extras Home & Tech scheme help you save up to 8% on thousands of home and tech products at IKEA and Currys while spreading the cost interest-free.

Electric vehicles

Looking to reduce your carbon footprint and save money in the process? Benefits like the Green Car Benefit help employees afford ultra low emission vehicles, providing savings whilst supporting sustainability.

Are you getting the most from your benefits?

The reality of benefits for employees is that they’re often underutilised. This is because many employees either don’t know what benefits their employer offers, or they simply don’t make the most of them. That’s why it’s important to take a little initiative and actually reach out to your employer, find out what perks they offer, and make the most of any financial or wellbeing benefits that are available to your current workforce.

Better yet, if you find gaps in your employee benefits package, you can always make recommendations to your employer. For example, BHN Extras offers a range of benefits that don’t just help employees save money, but also help employers save too through National Insurance contributions. That’s a win-win for everyone.

Ready to make the most of an employee benefits package that will make a real difference in your daily expenses, wellbeing, and mental health? Join BHN Extras for free today, or chat to us by calling +442074198294 or emailing enquiries@workplaceextras.com.

Benefits for employees FAQs

How do employee benefits support employee wellbeing? +

Strong benefits packages are designed to improve employee wellbeing, not just financially but mentally and physically too. Access to counselling, fitness discounts, private health insurance, flexible annual leave, and wellness packages can help to reduce stress and support a healthier lifestyle. When benefits are easy to use, they become a natural part of everyday life.

Are employee benefits taxed in the UK? +

Some employee benefits are taxed, while others are tax-efficient or even tax-free. For example, certain salary sacrifice schemes can reduce your taxable income, meaning you pay less tax overall. However, benefits like bonuses or some allowances may be taxed as additional income. It’s always worth checking how your specific workplace’s benefits for employees are structured so you can understand the real value you’re getting.

How do employee benefits impact long-term financial security? +

Beyond your monthly pay, the right benefits can help build financial stability over time. Employee and employer contributions to pensions, access to life insurance, and savings schemes all support your future, including your retirement plans. Having life insurance through your employer can also provide peace of mind, knowing your loved ones are protected financially if the unexpected happens.

Can small businesses offer the same employee benefits as large companies? +

Yes, and they increasingly do. Modern platforms such as BHN Extras make it easy for smaller employers to provide competitive benefits for employees without big budgets or admin. This levels the playing field, giving employees access to savings, perks, wellness packages, and support that were once only available at larger organisations.

What role does a hybrid working policy play in employee benefits? +

A hybrid working policy is now considered a key part of a modern benefits package. It offers flexibility between home and office working, helping employees save on commuting costs and improve their work-life balance. For many, this flexibility is just as valuable as financial perks.

What’s the difference between health insurance and private medical insurance? +

Health insurance is a broad term that can cover a range of healthcare support, from everyday treatments to specialist services. Private medical insurance is a type of health insurance that typically gives faster access to private healthcare, reducing waiting times for consultations and procedures. Both can play a big role in supporting your overall wellbeing.

What should I know about statutory sick pay? +

Statutory sick pay is the minimum amount your employer must pay if you’re off work due to an illness. However, some employers go further by offering enhanced sick pay or additional support through health insurance, helping you recover without worrying about lost income.

Do employee benefits cover family-related support? +

Yes, many benefits extend beyond the individual. Alongside maternity leave, some employers offer enhanced parental support, childcare assistance, or flexible working options. These benefits make it easier to balance work and family life without added financial pressure.

Are dental and preventative healthcare benefits common? +

Increasingly, yes. Benefits like dental care plans are becoming more popular as employers recognise the importance of preventative health. These are often included as part of wider health insurance packages, helping employees stay on top of their health before issues become more serious.

How can I tell if my benefits package is competitive? +

A competitive package goes beyond the basics. Look for a mix of financial perks, flexibility, and protection such as life insurance, wellbeing support, and access to health insurance. The best benefits for employees are easy to use, relevant to your lifestyle, and deliver real, everyday value while supporting long-term employee wellbeing.