New research from the Chartered Institute of Personnel and Development (CIPD) reveals a striking gap between what UK employers invest in benefits and how effectively they manage them, and the findings are worth careful consideration for HR and Rewards managers.
The Strategic Gap
According to the CIPD's Reward Survey: Focus on Employee Benefits 2026, one in five UK employers (22%) have no clear objectives for the benefits they offer. Of those who do set goals, retention (44%) and engagement (37%) top the list and only 31% connect benefits to productivity or business performance, the metrics that matter most to the bottom line.
Perhaps most concerning: only 33% of employers who review their benefits say those benefits fully meet their objectives. And 15% do not review their employee benefits against objectives at all. Given that employees form one of the highest value assets to a business, a thorough, regular review of the Employee Benefits is highly recommended to ensure the benefits are working for their business and evolving at a pace that matches the development and growth of the business.
The Flexible Working Blind Spot
Among personal and family benefits, flexible working is rated the single most effective benefit for meeting employer objectives. Yet despite its proven impact, only 40% of employers currently offer flexible working, a missed opportunity, however this should be balanced with the needs of the business and will depend on the sector, type of business, and needs of the customer.
Katie Mearns is Head of Employee Benefits at AC Wealth
From Cost to Strategic Asset
The message from industry leaders is clear. Without defined goals, regular reviews, and data-driven decision-making, whether that is tracking turnover, engagement scores, or team performance, businesses are spending and investing on benefits without knowing if they deliver real value.
A well-designed benefits strategy isn't simply good for employees. It's a genuine driver of culture, resilience, and performance.
Ask the experts
For many businesses in the UK, they often don’t have the luxury, or the need for an internal benefits expert to keep up with legislation, review which benefits are essential, or which are an optional extra. This can be challenging to navigate when reviewing the costs of a business, retention and rewards strategies, aligned with changing legislation. Recent legislative changes such as the increase in the cost of National Insurance contributions, add to the changing priorities of running a business and supporting your employees. An independent opinion can help you set the priorities, within budget to ensure your business has what it needs in place and to select the best added value. If it’s time for a review to make sure your benefits are cost effective, and adding value, the Employee Benefits team at AC Wealth can help. A free initial audit will outline clear objectives, benchmark your offering and communicate your benefits in ways your employees truly value.
Katie Mearns is Head of Employee Benefits at AC Wealth, based in Aberdeen providing companies across Scotland with effective and innovative employee benefits consultancy. www.acwealth.co.uk