Employers need to do more to link employee benefits with wider objectives as less than half use schemes as key part of retention efforts
A case in point is flexible working, where 75% of employees rate this benefit ‘highly’, but only 40% of businesses offer it, failing to maximise on benefits which would improve productivity and improve retention levels. The bigger the company the more likely they are to offer flexibility, with 68% offering a mix of compressed working week, job sharing, part-time working, term-time working and home working, revealed latest CIPD survey of employee benefits.
Setting clear objectives and reviewing them regularly could help employers unlock even greater value from their employee benefits packages.
Although many UK employers link their employee benefits to at least one business goal, a significant proportion still lack clear objectives. One in five (22%) have no set goals at all.
Organisations face ongoing pressure to boost productivity, control costs and keep skilled staff, and benefits are a major investment. The latest CIPD Reward survey: Focus on employee benefits 2026 report, supported by Everywhen, shows that clearer goals and more regular reviews could help employers gain more from that spend.
The CIPD survey of more than 1,000 HR and reward decision-makers found that 77% link benefits to at least one objective. The most common goals are retaining staff (44%) and improving engagement (37%).
Even when organisations set goals, few link benefits directly to productivity or business performance. Only 31% say their benefits connect to these outcomes.
This suggests some employers may overlook how benefits affect day-to-day performance. For example, financial wellbeing support can ease money worries.
The findings suggest that clearer links between benefits and business priorities – including performance and productivity – could increase their impact.
Reviewing benefits against goals
The research also shows room to improve how employers review their benefits.
Around 15% of employers with set goals do not review benefits against them. Among those that do review, only a third (33%) say their benefits fully meet their aims.
This highlights a gap between intent and results. Without regular reviews and clear measures of success, employers may struggle to know if benefits deliver value for money or support business priorities.
Flexible working is a good example. It’s seen as the most effective benefit for meeting employer goals. Among organisations that offer personal and family benefits, 75% rate it highly. Yet only 40% of organisations offer it.
This suggests some employers may want to review their benefits mix and focus more on what works best.
Charles Cotton, senior reward and benefits adviser at CIPD, said: ‘Setting clear objectives and reviewing them regularly is essential if employers are to get real value from their investment and genuinely support both business and employee needs.’
Tips on setting clear goals
Here’s CIPD’s four recommendation for employers:
- Set clear goals for benefits, aligned to business priorities;
- Review benefits regularly against clear success measures;
- Use feedback and data, such as turnover and performance metrics, to assess impact;
- Treat benefits as part of the wider reward strategy, not in isolation.
These steps can help employers move from offering a wide range of benefits to building a more focused and effective package.
Useful link
CIPD Reward survey: Focus on employee benefits 2026 report
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