The practical employee benefits that could help your business attract and retain top talent

In fact, research from MetLife found that 2 in 5 UK employees would take a willing pay cut for better benefits, including:

• Annual leave allowances (42%)
• Generous pension contributions (35%)
• Mental health support and wellness packages (34%). 

Used well, these employee benefits can support your valued staff, strengthen your recruitment efforts, and help your business build a more loyal team. 

Continue reading to discover five employee benefits that could help you attract and retain top talent.

1. Group life insurance

Group life insurance, often referred to as “death in service” cover, pays a lump sum to an employee’s loved one if they pass away while employed by your business. 

While this might not always be the most exciting benefit to talk about, it can still be incredibly valuable.

For an employee with a partner, child, or mortgage, knowing their family would receive support if the worst should happen can give them some much-needed peace of mind.

For your business, group life cover can also be a practical way to show that you care about your employees outside of work. 

It may be especially valued by employees who have not yet arranged personal protection or would find individual cover more expensive due to their health or age.

A group life scheme may also make your benefits package look more complete when recruiting, particularly for more senior staff or candidates with family responsibilities.

2. Pension salary sacrifice

A workplace pension is potentially already one of the most important benefits you offer, but salary sacrifice could make pension saving even more efficient.

As the name implies, this would involve your employees agreeing to reduce their salary. In return, you would pay the equivalent amount into their pension. 

Pension contributions made through salary sacrifice are typically exempt from both Income Tax and National Insurance (NI).

And, as an employer, you currently benefit from not paying Class 1 secondary National Insurance contributions (NICs) – 15% in 2026/27 – on the amount sacrificed by your employee, resulting in a tax saving. 

Just note that, from April 2029, the government plans to limit the NI efficiency on these contributions. While your employees won’t pay Income Tax on your contributions, any amount sacrificed into a pension above £2,000 a year will attract NI. 

Then, employees will pay Class 1 NICs while you’ll still be liable for the 15% rate. 

Still, pension salary sacrifice could help you recruit and retain staff as it helps them build their long-term financial security.

3. Health and wellbeing support

Health benefits tend to be attractive because they can offer practical help when your employees need it most. This might include:

• Private medical cover
• Dental cover
• Health cash plans
• Mental health support
• An employee assistance programme.

Each option serves a slightly different purpose, so it’s worth reviewing each to decide which might best suit your business.

These benefits can make employees feel supported in their day-to-day lives. And, for your business, they may help reduce absence and improve morale.

Read more: How you can prevent the hidden cost of absence from affecting your business

3. Group income protection

Group income protection can provide your employees with replacement income if they’re unable to work for a prolonged period due to illness or injury.

Many households would struggle if income stopped for several months, especially when employees have a mortgage, children, or other commitments. 

With group income protection, your business can provide a financial safety net if an employee becomes seriously unwell.

You can typically tailor these policies, too. For example, you may be able to choose what percentage of a salary is covered, how long payments continue, and how long the employee must be off work before the payments begin.

If a key member of your team is off work, having access to professional support may help them return safely when they’re ready. 

It can also give managers a clearer process to follow during a difficult situation, rather than trying to handle everything informally.

4. Financial wellbeing support

Money worries can easily affect someone’s concentration and overall wellbeing. So, you may decide to offer financial wellbeing support as part of your benefits package.

This might include: 

• Pension education
• Retirement planning sessions
• Budgeting guidance
• Access to a financial planner.

This could help employees better understand the benefits you already provide. For instance, an employee might already be enrolled in your pension scheme, but they may not realise that they could increase their contributions through salary sacrifice. 

Others might need help understanding the group protection policies you offer.

Ultimately, helping employees make better financial decisions could improve their confidence in the workplace and allow them to feel more in control. 

Get in touch

We can help you think carefully about which employee benefits may support both your team and your business goals.

To find out more, please call us on 01822 617 960, email info@hansfordbell.co.uk, or fill in our online contact form, and we’ll be in touch.

Please note

This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

Workplace pensions are regulated by The Pensions Regulator.

Note that financial protection plans typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.

Cover is subject to terms and conditions and may have exclusions. Definitions of illnesses vary from product provider and will be explained within the policy documentation.

The Financial Conduct Authority does not regulate tax planning.