Employee benefits give you the upper hand in the fight for talent

In today’s ultra-competitive job market, especially for small and medium-sized enterprises (SMEs) in the UK, attracting and keeping the right talent is tougher than ever. Rising salary expectations, evolving employee priorities, and a shift in work-life values post pandemic have changed the game. But one powerful and often underused tool can set your business apart: a well-thought-out employee benefits package.

For help in navigating the comprehensive range of options and calculating the return on investment (ROI) of any new interventions, speak with your employee benefits consultant or email Mattioli Woods today.

Background:

A recent study shows that 47% of employees consider a good benefits package as the most important thing they look for in employment¹.

Comprehensive benefits such as health cover, flexible working arrangements, wellness programmes, and professional development opportunities are not just incentives, they are essential tools for differentiation and can give you the upper hand in attracting talent.

Top benefits that attract UK talent:

Based on the experience of Mattioli Woods’ Employee Benefits team, below are some of the benefits that matter most to today’s workforce and how you can tailor them, even on a smaller budget.

Health and wellbeing support

Private health insurance is attractive but it’s not the only option. More accessible ideas include:

• health cash plans
• health assessments and guidance
• access to virtual GPs or Employee Assistance Programmes (EAPs)
• mental health support services
• gym discounts or wellness allowances

Financial wellbeing

With the cost-of-living crisis hitting hard, financial support is more important than ever:

• pension contributions above the statutory minimum
• salary exchange schemes (e.g. cycle-to-work, ultra-low emission cars)
• shopping discount portals
• access to financial advice/guidance either through digital pathways or in real life
• budgeting tools

Flexible working

Hybrid working has quickly become a non-negotiable for many employees. SMEs can offer:

• remote working options
• flexible start and end times
• compressed work weeks

Some companies offer a paid day off for your birthday, no requirement to take leave for doctor appointments (both for the employee and for their children), paid sabbaticals for work anniversaries, or even ‘pawternity leave’ for new pet owners, supporting personal milestones and family life.

These options can cost little but significantly enhance employee satisfaction and are key considerations for employees when considering a new employer.

Family-friendly policies

SMEs that show support for employees’ family lives stand out. Think about:

• enhanced parental leave
• childcare support
• flexible return-to-work arrangements

Learning and development

Career growth is a major retention driver. Employers could consider:

• online training platforms (many are affordable or free)
• paid study time
• mentoring or coaching schemes

Focus on the value, rather than the spend:

A thoughtful benefits package not only attracts new employees, but it also builds long-term loyalty. When employees feel supported, valued, and heard, they’re far more likely to stay. Customisation is key: what an 18-year-old apprentice needs may differ from a 50-year-old finance manager. Offering a range of benefits, or even a ‘flexible benefits’ system, can help you cater to diverse needs.

Getting started: simple steps for SMEs

1. Review your current arrangements. Are they relevant and being used?
2. Ask your employees for their views. What do they value most? Conduct a survey to find out.
3. Benchmark competitors. What are other SMEs in your sector offering?
4. Calculate the ROI. This will help establish a budget for any new interventions.
5. Start small. Even a few new low-cost benefits can signal that you care.
6. Communicate clearly. Employees need to understand what’s available – and why it matters.

Final thoughts

In a competitive job market, employee benefits are no longer optional extras; they are a key part of your competitive advantage. For UK SMEs, the good news is that you don’t need massive budgets to make a meaningful impact. With creativity, empathy, and clear communication, you can design a benefits package that not only attracts talent but keeps your best people happy, healthy, and loyal.

For help gaining that upper hand, speak with your employee benefits consultant or email Mattioli Woods today.