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Beyond salary: why employee benefits will define hiring

10 minutes read

What will drive hiring success this year? While salary benchmarking often takes center stage when looking to hire new talent, the growing importance of comprehensive benefits packages can often be overlooked. 44% of employees would actually consider accepting a lower salary if the role offered attractive workplace benefits, highlighting the crucial role of comprehensive benefits in creating a desirable workplace.

Here’s why employee benefits will be a key factor in hiring in 2025 and beyond:

Evolving priorities

Employee priorities have shifted significantly towards comprehensive and flexible benefits packages. In fact, our recent survey into employee benefits found that 76% of professionals consider benefits very important when evaluating job offers. This shift means it’s vital for employers to consider more than just the current salary benchmarks. Benefits such as health and wellness programmes, flexible work arrangements and professional development opportunities are now key factors in job satisfaction and loyalty.

Annual bonuses, pension contributions and flexi-work policies – to name a few – are seen as essential elements alongside base pay. Employers’ failure to communicate or offer attractive benefits could have serious repercussions on both attraction and retention levels, as well as their employees’ overall engagement and productivity levels.

                    Chris Eldridge, CEO – UKI & North America, Robert Walters

Financial wellness

With inflation rates driving up the cost of living around the world, financial benefits have become important to combat rising costs. Pension plans, annual bonuses, stock/equity options and financial wellness programmes are crucial for long-term employee satisfaction, with 42% of professionals reporting that these benefits increase their loyalty to their company. 

Health and wellbeing

Mental health support, wellness programmes and comprehensive healthcare benefits are becoming increasingly important to employees. 59% of professionals agree that these types of benefits positively impact their work-life balance. Employers who invest in robust health and wellness programmes not only enhance employee wellbeing but also boost productivity and engagement.

Mental health support has become a top priority, especially post-pandemic. Employers are dedicating resources to mental health, with standard employee assistance programmes (EAPs) and psychotherapy in paramedical coverage.

                    Tim Pal, Insurance Advisor, Rampart Benefits Inc.

 

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