Close to half (47 percent) of UK employees say a good benefits package is the most important thing when looking for a job.
This was a key finding from research by benefits technology provider Zest as it also reported that its customers’ monthly spend on employee benefits packages had increased by 22 percent in 2024.
Rises in employer spend have been caused by a number of factors, including employee demand. Research from Zest showed that 56 percent of employees would leave their job if another company offered them a better benefits package.
Nearly a fifth (19 percent) of employers said they are unable to raise employee salaries in line with inflation as business costs are due to rise substantially in April following the Autumn budget. In response to this, Zest said employers have enhanced benefits packages to reward people and attract and retain talent. Almost half (49 percent) of businesses report that they have increased investment in their benefits package in the past year.
National insurance savings
The provider said that last year, employers saved £6.8 million in national insurance contributions each month by using its benefits platform, which was an increase from NI savings of £5.37 million each month in 2023. Zest explained that these NI savings were possible because employers had increased their investment in taxable benefits, which reduces employer NI contributions while delivering value to employees.
Matt Russell, CEO at Zest, said: “Employers are increasingly turning to benefits packages as a cost-effective way to reward employees when pay raises and bonuses may not be possible – this is an excellent approach to reward employees and attract new talent.”
“With employees demanding more personalised benefits, employers need access to platforms that allow them to easily administer packages and effective communication channels to drive engagement. Without this, organisations risk putting themselves at a competitive disadvantage.”
The provider’s return on investment calculator is available to employers to find out more about potential savings on employer NI contributions.
