You’re working hard to attract candidates, but you’re losing the best talent to other companies. The salary you’re offering is competitive, so what’s the problem? It could be your benefits package.

The right employee benefits package can be a deciding factor for candidates selecting roles, or top employees considering a move to a competitor’s organisation.

In this article, we’ll explore what matters most to employees, and how to build benefits packages to attract and retain top performers.
 

Why a good employee benefits package matters

Employees want to feel supported, protected, and respected by employers – and company benefits packages are a great way to achieve that. According to research from Eden Scott, 77% of candidates research a company's values before accepting a role, and 60% say holiday allowance is a significant factor in job selection.

Benefits packages, when thoughtfully constructed, can:

• Attract talent in a competitive hiring market
• Improve retention by showing long-term commitment to employees
• Boost engagement and productivity by creating a positive work culture
• Reduce burnout and absenteeism by supporting employee wellbeing

Employee benefit examples

A comprehensive benefits package balances practical, personal, and developmental support. Based on employee feedback, the four most important categories are:

Financial employee benefits
Aimed at improving employees’ financial security.

• Enhanced pension contributions or matching schemes
• Income protection and life assurance
• Staff discounts schemes
• Workplace financial advice
• Company shares or stock options

Note: Listing standard offerings - like statutory pension contributions - as a benefit is unlikely to attract candidates. Focus instead on the benefits that go beyond the basics.

Health and wellbeing employee benefits
Supporting employees’ mental, physical and emotional wellbeing.

• Health insurance
• Generous sick pay policies
• Extended parental leave
• Menopause leave
• Extended holiday entitlement and holiday buying schemes
• Gym memberships or wellness budgets
• Mental health support / counselling sessions
• ‘Duvet days’ or mental health days
• Cycle to work scheme

These benefits don’t just promote healthier employees - they foster trust and reduce stress-related absences.

Career development employee benefits

• Investing in employee growth, creating opportunities for progression and building stronger teams.
• Sponsored qualifications or certifications
• Training budgets
• Paid leave for exams or educational courses
• Conference attendance
• Mentorship programmes

Employees increasingly value upskilling opportunities over one-off perks.

Recreational & lifestyle employee benefits
While not deal-clinchers on their own, adding fun perks to your benefits scheme can enhance daily job satisfaction and workplace culture (when layered on top of higher value benefits).

• Company retreats, team-building days
• Early-finish Fridays
• Office drinks or monthly socials
• Free snacks or catered lunches
• Pet-friendly offices (where appropriate)

These shouldn’t be a substitute for serious support - but they’re excellent when part of a building a positive workplace culture.
 

The best employee benefits candidates really want

From extensive candidate research and employer feedback, the best benefits packages have one thing in common: they focus on what people actually need.

Top priorities for UK employees:

• Fair, realistic pay 
• Private health and life assurance for peace of mind
• Generous and fair sick pay
• Support for major life events - fertility, bereavement, menopause, life transitions
• Reasonable working hours (to avoid unpaid overtime culture)
• Extended parental leave
• Additional annual leave or leave-buying schemes
• Remote/hybrid options with autonomy
   

Avoid these common benefits package mistakes:

• Listing statutory benefits (28 days’ annual leave or legally required flexible working) as perks
• Over-emphasising fun extras without offering core support
• Overlooking the unique needs of your workforce (e.g. offering cycle-to-work schemes to remote-only teams)

How to build a strong benefits package

A strong employee benefits package doesn’t need to include everything - just what matters most to your team and target candidates.

Reflect on what your team really values
Start by assessing the benefits your current employees frequently use - and those they don’t. Consider your team’s personal circumstances, including family commitments, commuting needs, and health concerns. Where possible, ask for direct feedback through surveys or informal check-ins.

Consider what matters to candidates
If you're unsure what candidates expect within your industry, speak to a recruitment consultancy like Eden Scott. With expert-led teams across over 20 sectors, we can advise you on what’s standard, what’s desirable and what could give you an edge in attracting top talent.

Less is more
If resources are limited, don’t try to offer everything. Focus on doing a few high-impact things really well - like enhanced sick pay, private healthcare, or extended parental leave - rather than spreading yourself thin with a wide range of so-so perks.

Trial, assess, and refine
Launch new benefits on a trial basis and monitor the results. Are you attracting stronger candidates? Are you converting them into hires more easily? Is staff retention improving?

Use this data to refine your offering over time - a good benefits package should evolve alongside your workforce.

Example employee benefits packages

Here’s what a good benefits package tailored to a focus area could look like:

Wellbeing-focused benefits package

• £40,000 annual salary
• 30 days annual leave (plus bank holidays)
• Private health insurance
• Mental health support (6 counselling sessions/year)
• Hybrid working and extended WFH when required

Development-focused benefits package

• £35,000 annual salary
• 28 days annual leave (+ option to buy 5 more)
• Funding for professional certification
• Attendance at 2 industry events per year
• Paid time off for exam leave

A good benefits scheme doesn’t need to be complicated. The most effective packages focus on what candidates and employees need - fair pay, good health support, work-life balance, and opportunities to grow.

Offering relevant, carefully chosen benefits will help you attract better candidates and retain them as employees.