In today’s highly competitive labour market, a well-designed benefits package is no longer a “nice to have”; it’s a strategic imperative. Businesses that want to attract and retain top talent must offer more than just a competitive salary. Employees are evaluating total reward packages, including everything from pensions and flexible working to wellness perks and professional development support.
A strong benefits package balances legal obligations, like pension auto-enrolment and statutory leave, with additional perks that reflect organisational values, culture, and priorities. Done right, it improves morale, enhances employer branding, and delivers a measurable return on investment.
Kingfisher Professional Services partners with employers across the UK to design cost-effective, compliant, and people-centric benefits packages that meet evolving expectations while safeguarding legal and financial responsibilities.
Building the Foundation: Core Employer Benefits
A competitive benefits package begins with legal compliance, but that’s only the start. UK law mandates that all employers provide certain core benefits: a workplace pension scheme with auto-enrolment, statutory annual leave of at least 5.6 weeks, and statutory sick pay. Additionally, businesses must offer maternity, paternity, and shared parental leave as outlined by employment legislation. These requirements form the foundation of employer obligations.
However, in a competitive market, simply meeting the minimum legal standard is not enough to differentiate your organisation or retain top talent. Forward-thinking employers go beyond compliance by offering enhanced core benefits that demonstrate long-term commitment to employee wellbeing and financial security.
For instance, many businesses increase their pension contributions above the mandatory 3%, with some offering matched contributions or tiered schemes that reward longevity and seniority. Private medical insurance is another common enhancement, particularly attractive in sectors where stress or physical health challenges are prevalent. Employers may also offer life insurance, critical illness cover, or health cash plans that reimburse employees for everyday healthcare costs, such as dental work, eye tests, or physiotherapy.
These enhancements not only support individual employees but also reflect positively on your company culture. They reduce absenteeism, support better health outcomes, and increase employee loyalty, resulting in higher productivity and reduced turnover over time.
Expanding with Flexible Perks & Wellbeing
Beyond core benefits, modern benefits packages are increasingly shaped by flexibility and wellbeing. Employees today value autonomy, mental and physical health, and the ability to align work with personal life.
Hybrid working has become the norm for many industries. In 2025, nearly 9 in 10 UK employers offer some form of hybrid arrangement. But flexibility goes further than location. Some organisations now offer compressed work weeks, additional leave types (like ‘duvet days’ or mental health days), or reduced hours during summer months. These policies recognise the value of rest and autonomy, two factors closely linked to engagement and performance.
Well-being is another major theme. Businesses that prioritise health are increasingly investing in Employee Assistance Programmes (EAPs), employer-paid counselling, on-site or virtual physiotherapy, flu vaccinations, and even wellness stipends that employees can spend as they choose on gym memberships, apps, or healthy food. Preventative health strategies such as annual health screenings or ergonomic assessments are also on the rise, particularly for remote workers.
Development benefits reflect another key area of investment. Many companies now offer professional learning stipends, conference attendance budgets, or support for certifications and training. These opportunities signal investment in long-term career growth, which can increase employee loyalty and align personal aspirations with business needs.
Lifestyle perks, including cycle-to-work schemes, EV leasing, or tech purchasing plans via salary sacrifice, remain popular because they offer genuine financial value at low cost to the employer. They also appeal to younger workers, prioritising sustainability and digital connectivity.
Ultimately, flexible perks demonstrate an understanding of employees as people, not just workers. When thoughtfully selected, they strengthen your employee value proposition and foster a more inclusive, engaged workforce.
Benchmarking Benefits: Why & How
Designing the right benefits package means knowing how your offer compares. Benchmarking is the process of evaluating your organisation’s benefits against those of similar companies, sector standards, and evolving employee expectations.
Without benchmarking, businesses risk either over-investing in benefits that offer little return or under-investing in areas that matter most to employees. Data from CIPD, YouGov, and industry-specific rewards reports can help HR teams understand what competitors are offering and identify new trends in benefits strategy.
However, benchmarking should go beyond a simple checklist. It should involve assessing the perceived value of each benefit, measuring how well current perks are used, and understanding the correlation between benefits and HR metrics like retention, engagement, or absenteeism.
For example, if you invest heavily in private medical insurance but few employees take it up, there may be a communication issue or a misalignment with needs. Alternatively, if employees are consistently using a wellbeing allowance or L&D stipend, it may be worth expanding those perks further.
By combining external benchmarks with internal insights, you can develop a benefits strategy that is competitive, meaningful, and aligned with both budget and culture.
Communications Strategy & Launch Framework
Even the most valuable benefits package fails without clear communication. Employees must know what’s available, how to access it, and why it matters.
Effective communication begins with clarity. Avoid jargon and explain benefits in plain, relatable language. Use multiple channels, such as email, intranet, manager briefings, and short videos, to ensure accessibility for all staff. Create user-friendly documents, FAQs, and one-page summaries that make it easy to understand what’s included and how to opt in.
Education is critical to uptake. Hosting benefits overview sessions, lunch-and-learn webinars, or onboarding walkthroughs can help demystify more complex options like salary sacrifice schemes or pension matching. Consider training managers to act as benefit ambassadors, answering questions and helping team members navigate choices.
Perhaps most importantly, link benefits messaging to your company’s purpose and values. If well-being is a pillar of your culture, highlight how your benefits support mental, physical, and emotional health. If development is a core value, focus on training, progression pathways, and upskilling support.
A structured rollout framework ensures consistency and momentum. Set clear timelines, communicate in phases, and gather feedback along the way. Post-launch, keep the conversation going – seasonal reminders, employee stories, and updates help maintain visibility and engagement.
Employer Checklist: Designing a Balanced Package
A successful benefits strategy is built on clear goals, legal compliance, and ongoing review. Before launching or refreshing your offering, employers should audit their statutory commitments, ensuring full compliance with current legislation on pensions, leave, sick pay, and workplace protections.
Next, define your strategic priorities. Are you looking to attract younger talent? Reduce sick days? Improve engagement? Your benefits should reflect these goals. Build around what matters most to your people – gather insights through surveys, exit interviews, or informal conversations.
Avoid offering every possible perk. Instead, select high-impact benefits that align with your business identity and budget. Layer in benchmarking to ensure your offer remains competitive and cost-effective.
Finally, plan for continuous improvement. Establish a benefits review cycle (e.g., annually or biannually), and measure success based on take-up rates, feedback, and HR metrics. Benefits are most effective when they evolve in response to business shifts and employee feedback.
How Kingfisher Supports You
Kingfisher Professional Services helps employers build legally compliant, cost-effective, and people-first benefits packages tailored to business needs:
- Legal Compliance Consultancy: Ensure your benefits comply with UK employment law, including pension auto-enrolment, tax-efficient benefit schemes, and relevant health and safety obligations.
- Benefits Selection & Benchmarking Guidance: Kingfisher’s advisors help you choose perks that align with business goals and employee expectations, supported by benchmarking frameworks to compare offerings within your industry.
- Policy Drafting & Communications Support: From benefits policies to internal launch emails, Kingfisher assists with documentation and messaging to ensure clarity and engagement.
- Manager Training & Usage Tracking: Help your teams understand and promote available benefits, and build systems to measure usage, uptake, and employee feedback.
With Kingfisher’s guidance, your benefits package becomes a strategic asset – attracting talent, improving morale, and supporting a culture where employees feel genuinely valued.
Conclusion
In a world where talent attraction and retention are top priorities, a thoughtful and competitive benefits package offers a vital advantage. It communicates care, reflects culture, and delivers real value for both employers and employees.
Kingfisher helps UK businesses strike the right balance between compliance, cost, and culture, ensuring your benefits strategy works for your workforce and your bottom line.
If you’re ready to review or redesign your employer benefits package, contact Kingfisher today for expert-led insights, legal support, and strategic planning.