Does Your Benefits Package Matter More than Salaries?

If you’ve been focused purely on headline salaries to attract top talent, it’s time to rethink your approach. A recent UK survey of 300 HR decision-makers found that 46% now say offering a good range of benefits is the top priority when supporting staff, and that’s ahead of paying a good wage (42%). Clearly, for many of your future candidates and current team, it’s not just the number on the payslip that counts.

Benefits as strategic differentiator

When you’re competing for skilled people in finance, marketing, customer service or any office-based role, your total reward proposition becomes a differentiator. Benefits such as flexible working, wellbeing programmes or bespoke choices signal you understand people’s lives and not just their output. As the survey concludes: “Benefits often provide more flexibility than salaries and allow employers to remain responsive to employee needs while controlling costs.” For HR professionals and business leaders, that means benefits are not just a nice-to-have, but part of your strategic HR toolkit.

Personalisation matters

One key insight worth noting is that it isn’t enough to plaster on a long list of perks. The organisations that stand out are the ones giving employees autonomy and choice. For example, in the study, employers who “embrace flexible benefits – giving people greater autonomy to choose the benefits they genuinely want – have seen staff retention rates improve.” That means allowing your workforce to pick what works for them, rather than assuming one size fits all. Lots of benefits partners are now offering this pick n’ mix approach.

How to Get Leadership Buy-In for Better Benefits

From a strategic vantage point, the benefits package supports three core levers: attraction, retention and cost control.

• Attraction: If candidates assess your offer beyond salary, your benefits package becomes a compelling draw. Indeed, it’s not uncommon for lower salary jobs to attract the best candidates because of the benefits package.
• Retention: Employees who feel their employer cares about their broader life are less likely to look elsewhere. Recruitment is expensive, so holding onto good staff makes sense.
• Cost control: While salary hikes might force budget strain, benefits can be creative and scalable with smarter structuring. You can get clever with benefits when budgets are tight.

Practical steps you can take

Here are a few actionable ideas you can bring into your next talent strategy meeting:

• Review your current benefits offering and ask, “Which items are valued, and which just sit dormant?” Awareness of existing benefits matters. And then educate yourself on what’s out there.
• Survey your workforce (or target candidate profiles) to understand what they truly value. Listen to what’s wanted.
• Frame your benefits offer clearly in your employer-brand messaging, making it align with your employer values.
• Align benefits with your budget. You can differentiate, cost-effectively, with ideas such as volunteer days or additional leave.
• Look at turnover in key roles, offer acceptance rates and how your benefits compare with market peer sets. Working with us can really help there.

It’s time to treat benefits as a strategic tool – not just part of what you have to do. Your investment in meaningful, personalised benefits can offer a stronger return on investment than chasing salary increases alone.

Work with us to find leading talent and shape reward strategies that support future-focused organisations.