Ask employees what really matters in a benefits package, and the same theme will come up time and time again: long-term financial security.
Our latest research shows that nearly a third (31%) of employees rank increased employer pension contributions as the most important perk for their 2026 reward package.
While automatic enrolment has improved pension participation, employees continue to call on employers to do more. Department for Work & Pensions data shows the average employer currently contributes around 4% of employee’s salary – above the minimum requirement of 3% – yet our research reveals that employees want to see that contribution increase further.
Demand is even higher among those aged 55 and over who are likely making maximising retirement savings their top priority - four in ten (40%) want increased employer pension contributions to boost their pension pots.
The Chancellor’s Autumn statement confirmed that the pension salary sacrifice scheme will be capped at £2,000 from 2029 meaning employees and employers will no longer benefit from tax relief on additional pension contributions above this amount. The clock is ticking on making the most of this tax-efficient savings approach.
Until then, employers have a valuable window to act. Increasing pension contributions now allows organisations to deliver long-term, cost-efficient financial support to employees, before the cap is introduced, and tax advantages are reduced, in 2029.
While pension contributions may top the list, they are not the only area where employees want support. As cost-of-living challenges continue to shape financial priorities, workers are looking to their benefits for meaningful financial support that helps alleviate the pressure.
Findings show that private medical insurance (PMI) was the second most-desired benefits 2026, with three in ten (30%) employees naming this a top priority. Meanwhile, support to help with everyday spending also ranked highly – from high-street shopping discounts (21%) to contributions towards energy bills (18%) – highlighting how much practical, day-to-day financial support matters to today’s workforce.
Flexible working continues to be a defining feature of competitive benefits packages. As expectations around work evolve, flexibility is no longer a ‘nice to have’ – it’s a core driver of attraction and retention.
Unlimited paid time off ranked as the joint most-popular benefit, while hybrid working, remote working weeks and ‘work from anywhere’ policies were all highly sought after. These preferences underscore how much employees value autonomy and trust, alongside the ability to maintain a healthier work-life balance.
Options such as split shifts or work-from-home allowances can be particularly valuable for those managing childcare or other dependants, while policies that support working away from the office enable travel, family time and greater personal freedom – boosting morale without compromising productivity.
The results show a clear pattern: employees want benefits that improve their long-term financial security while giving them greater flexibility over how and where they work.
Offering the right benefits is only part of the challenge for employers. Too often, benefits packages fail to meet employee needs and deliver value for money simply because employees don’t understand what’s available or how to use it.
A flexible benefits platform makes all the difference, bringing a range of benefits and policies into one easy-to-navigate space while providing employers with the tools to engage staff. Data on uptake gives insight into which benefits are most valued, while communication tools allow organisations to easily update their teams and provide a channel for individuals to inform HR leaders what benefits may be missing from reward strategies.
When benefits are visible, relevant and easy to access, they become a genuine driver of attraction, retention and productivity.