Employee benefits are coming under closer examination as organisations contend with rising costs, ongoing absence levels and renewed pressure to keep people in work. Industry observers argue that these forces are changing how benefits are used and assessed, with greater attention being paid to whether schemes genuinely support attendance, health and productivity.
The focus comes at a time when employers are being encouraged by government to improve workforce participation and reduce long term sickness absence. With budgets under strain and economic uncertainty continuing into 2026, benefits that are seen as discretionary or poorly utilised are increasingly being questioned, while those linked to keeping people in work are attracting greater interest.
Rather than expanding benefit offerings, the emphasis is moving towards extracting clearer value from what already exists. Health-related benefits, income protection and return-to-work support are being viewed less as optional extras and more as tools to manage absence and sustain workforce capacity.
Returns to work and prevention gain prominence
These themes are set out in a new forecast by GRiD, which represents providers and advisers in the group risk and employee protection market. The organisation expects return-to-work support and preventative health measures to play a larger role in how benefits are used over the coming year.
GRiD points to growing emphasis on early intervention, arguing that preventing health issues from escalating into prolonged absence is becoming increasingly important as costs rise. Benefits designed to support physical and mental health before problems worsen are expected to see higher levels of engagement, particularly where they are embedded within existing protection products.
At the same time, GRiD suggests that employers are becoming more selective about which benefits justify ongoing investment. Rather than focusing on the breadth of offerings, attention is turning to depth of support and the extent to which benefits are actually used and understood by staff.
Greater scrutiny of value and outcomes
Alongside prevention and return-to-work support, GRiD argues that benefits spending is being examined more closely for measurable outcomes. The organisation expects benefits to be assessed against their contribution to wellbeing, attendance and productivity, rather than simply forming part of a standard package.
Katharine Moxham, a spokesperson for GRiD, said employers were under growing pressure to keep people in work. “In 2026, every employer, both large and small, will be under greater pressure to keep people healthy, present and productive. Prevention, effective returns to work and demonstrable ROI from benefits will become essential.”
GRiD also argues that these pressures are not limited to large employers. Smaller organisations are expected to apply similar scrutiny to benefits provision, particularly as access to group risk products and wellbeing services becomes more widespread across the market.
The analysis suggests that employee benefits are entering a period of tighter evaluation. As absence levels, costs and workforce participation remain under close watch, benefits that can demonstrate practical support for health and sustained attendance are likely to attract greater attention than those perceived as peripheral.
