Top 7 Best Employee Benefits in the UK (2025 Edition)

The battle for top talent has fundamentally shifted the benefits conversation. Where once a pension and basic healthcare sufficed, today’s professionals assess the entire employment package when making career decisions.

So, which benefits are actually making an impact in the UK market? Here’s what the data shows:

1. Enhanced Holiday Entitlements and Flexible Leave

Annual leave remains one of the most valued benefits. While the statutory minimum sits at 28 days (including bank holidays), many employers go beyond this. According to our report:

• 37% offer between 26-30 days
• Only 10% offer more than 31 days

Additional perks like birthday leave, buy/sell schemes, and long-service-based increases are becoming more common. These relatively low-cost benefits send a strong message about valuing employee wellbeing and balance. Again, only 23% of employees have access to their birthday off.

2. Comprehensive Health and Wellbeing Support

Healthcare remains a cornerstone benefit. While not universally offered, its value is rising:

• 64% of employees currently receive private medical insurance
• 58% receive enhanced sick pay

Mental health support is gaining traction, too. This is especially important as Gen Z becomes an ever-increasing percentage of the workforce, with their age cohort citing mental health support as a key factor in building a positive workplace.

3. Flexible Working Arrangements

While flexible working isn’t always labelled a “benefit,” it’s become non-negotiable for many candidates, with our 2025 survey showing that 51% of employees have a flexible/hybrid working arrangement. But more notably: happiness appears to split down the lines here:

“Satisfaction is highest among those with flexible models; 94% of employees with flexible schedules, 88% of those who are fully remote, and 87% of those who go into the office just one day a week report being content. In contrast, among those dissatisfied, 39% work full-time in the office.”

Employers not offering flexibility risk alienating top talent. In fact, flexible working is now cited as a top-three priority when candidates evaluate job offers.

4. Professional Development and Training Opportunities

Offering learning and development (L&D) isn’t just good ethics – it’s good business. Our report found:

• 67% of respondents cited a structured career progression framework as the most impactful career-related benefit.
• 65% of employees currently receive paid education or training allowances

Aside from formal qualifications, professional body memberships, mentoring programmes, conference attendance, and cross-functional projects all contribute to professional development.

5. Performance-Related Bonuses and Incentives

Bonuses remain a key motivator – but the structure and accessibility vary widely:

• 46% of employees surveyed have no access to bonus opportunities
• Only 18% have access to performance-based bonuses
• 12% of employees have access to profit-based bonuses

The highest figure is those interested in access to some form of bonus; 68% expressed interest in team and/or individual incentives, making it a clear way for employers to gain and retain top talent.

6. Enhanced Parental and Family Support

Support for families is becoming a stronger differentiator, particularly among mid-career professionals. The 2025 data reveals:

• 66% offer enhanced maternity leave
• 60% offer enhanced paternity leave
• 53% offer enhanced adoption leave
• 37% offer some form of childcare assistance

As talent pools diversify, forward-thinking employers are building benefits packages that reflect the needs of parents and carers.

Making Benefits Work for Your Business

The most effective benefits strategies are targeted, not catch-all. Understanding your employee demographics is key:

• Younger staff may value L&D, flexibility, and tech perks.
• Older professionals may prioritise pension contributions, private healthcare, or critical illness cover.

Regular benefit surveys, benchmarking, and engagement reviews can help you tailor offerings where they’ll have the most impact.

The Bottom Line

Benefits are no longer “nice-to-haves” – they’re integral to your employee value proposition. In a market where quality candidates are selective, offering the right package is a competitive advantage.

Want help benchmarking or reviewing your benefits strategy? Portfolio’s HR & Reward specialists can help assess your current offering and guide enhancements that drive real value for both your business and your people.