Paid sick leave remains the most important workplace benefit for UK employees, according to new research that highlights the growing importance of job security and financial protection alongside flexible working and pay.
A survey of 2,000 UK workers by HR and payroll software provider Ciphr found that 68 per cent of respondents rank company sick pay as the single most valuable employee benefit, placing it ahead of annual pay rises, pensions and flexible working arrangements.
The finding is broadly unchanged from a similar study carried out four years ago, suggesting that attitudes towards core employment protections have remained stable despite significant shifts in the labour market and cost-of-living pressures.
After paid sick leave, the most sought-after benefits include pay increases that keep pace with or exceed inflation, selected by 60 per cent of respondents, and flexible working hours, chosen by 58 per cent.
Pension contribution matching and additional holiday entitlement also remain highly valued, cited by 54 per cent and 50 per cent of employees respectively.
The research suggests a broadly balanced mix of financial and non-financial priorities among workers, with wellbeing, flexibility and long-term financial security all featuring prominently alongside immediate pay considerations.
Other benefits in the top 10 include upskilling opportunities (48 per cent), employee discount schemes (46 per cent), paid overtime (42 per cent), hybrid working (41 per cent) and personalised development opportunities (37 per cent).
Ciphr said the results underline the extent to which employees increasingly value benefits that support health, wellbeing and work-life balance, as well as those that contribute to long-term financial stability.
The survey also highlighted differences in priorities across age groups. Workers under 45 were more likely to prioritise flexible working and training opportunities, while those over 45 placed greater emphasis on pension contributions and retirement savings.
Flexible working hours emerged as a particularly strong preference among employees aged 35 to 44, a group often balancing career progression with caring responsibilities.
However, the findings also suggest that expectations around retirement planning become more pronounced with age, with older workers placing increased importance on employer pension support.
Ciphr’s research also compared employee expectations with employer offerings, revealing both alignment and gaps between the two.
More than half of employers report offering many of the most desired benefits, including flexible working, hybrid arrangements, sick pay, pension contributions and training opportunities.
However, discrepancies remain. While 60 per cent of employees say inflation-linked pay rises are important, just 38 per cent of employers provide them. Gaps also exist around sick pay and additional holiday allowance, where employee demand exceeds provision.
The findings come as employers continue to use benefits packages as a key tool in recruitment and retention, amid ongoing competition for skilled workers and pressure to manage wage costs alongside broader economic uncertainty.
While salary remains a central factor in employment decisions, the research suggests that benefits such as sick pay and flexibility have become increasingly important in shaping how workers assess job quality and long-term career choices.
Karen Lough, director of people at Ciphr, says: “With employer National Insurance (NI) contributions rising and wage bills under sustained pressure, it’s understandable that companies are scrutinising every line of their reward and benefits spend. But this research highlights a real risk in employers cutting back or standing still. It also shows that employees have clear priorities – paid sick leave, pay rises that keep pace with inflation, pension matching, and flexible working – and in several areas there are significant gaps between what they expect and what employers tell us they currently provide.
“Take paid sick leave for example – the top-ranking benefit chosen by employees. Only half (56%) of employers offer company or contractual sick pay. This creates a situation where many employees may force themselves to work when they may not be well enough to do so, because they can’t afford to live on SSP (Statutory Sick Pay). While the latest SSP reforms are welcome and will make sick pay more accessible to lower earners and part-time earners, the changes won’t fully bridge the gap for employees without company sick pay. That has consequences for productivity and long-term absence that employers often underestimate.
“A strong, clearly communicated benefits package builds trust, helps reduce absenteeism, burnout and attrition, and strengthens your employer brand. Getting it wrong, or simply doing nothing, carries its own cost, one that tends to show up quickly in increased recruitment spend and lower engagement and performance scores.”
Lough recommends employers take a data-led approach and spend time listening to their employees to understand their needs and priorities, and what benefits they want and value.
“Giving your people greater autonomy to choose the benefits they genuinely want helps make them feel valued and more motivated. But it’s important to be led by the data – use feedback from existing employees, and recent leavers, to understand what you’re doing right and what needs to improve. Interrogate your benefits uptake data – are your employees aware of what benefits they may already have access to? And benchmark to identify where to focus your investment for maximum impact.
“It won’t always be possible or financially viable to deliver on every specific benefits request. But organisations that can act on employee feedback, wherever possible, and provide agile and flexible benefits schemes are more likely to have a more resilient and high-performing workforce.”
Phil Curtis, MD of flexible employee benefits platform FlexGenius (part of the Ciphr Group), adds: “It is becoming ever-more important for employers to respond to the changing needs of employees as they progress through their working lives. A workforce that spans different generations, life stages and working patterns no longer responds to a single, fixed benefits package.
“What supports a graduate in their first job is rarely what supports a parent on phased return, or a senior leader thinking about long-term financial protection.
“A personalised employee benefits platform, like FlexGenius, is what makes flexible benefits work in practice.
“They give HR and reward teams the structure to design a thoughtful package, the tools to communicate it so people actually use what’s on offer, and employees genuine choice across their health, financial and lifestyle priorities. That is where we see significant improvement in the physical, mental and financial wellbeing of employees, and it shows up in retention, attraction and engagement.
“Employees want to feel fairly rewarded for the value they bring to an organisation, and offering relevant, personalised benefits is an essential part of that.”
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