In a recent survey conducted by MetLife UK, it was revealed that 40 percent of UK employees would willingly accept a lower salary in exchange for better employee benefits, such as income protection, death in service benefits, and hybrid working options.
The findings come amidst a growing demand for improved workplace perks and financial security among the workforce.
Financial protection emerged as a top priority for a significant portion of respondents, with 33 percent emphasising the importance of income protection in their job considerations.
Also, 35 percent expressed a desire for generous pension contributions, underlining the increasing significance of long-term financial planning for employees.
Flexible working is prioritised
When evaluating non-financial benefits, the survey highlighted a strong preference for flexibility and well-being support. Nearly half of the respondents (47%) prioritised hybrid and flexible working arrangements, reflecting the shifting dynamics of the modern workplace. Furthermore, 42 percent emphasised the importance of annual leave allowances, while 34 percent sought mental health support and wellness packages.
MetLife UK’s research coincides with the relaunch of its limited term Group Income Protection offering, aimed at providing businesses with cost-effective solutions to support employee well-being. The revamped service not only provides financial assistance during extended absences but also includes additional support services such as virtual GP consultations, early intervention programs, rehabilitation services, and employee assistance programs.
Adrian Matthews, Head of Employee Benefits at MetLife UK, emphasised the evolving role of benefits in attracting and retaining talent. He stated, “Competitive salaries are important, but businesses need to realise that it’s not the only thing candidates think about when assessing job opportunities. Employers need to look beyond paychecks and assess options for wider support and protection to attract and retain the best people.”
The study also underscored the economic implications of employee absence, with UK businesses bearing significant costs associated with absenteeism. On average, organisations with 1,000 employees incur approximately £1.75 million annually due to temporary staff expenses, administrative overheads, lost productivity, recruitment, and training.
Affordable benefits packages
Matthews highlighted the significance of providing affordable yet comprehensive benefits packages in the current employment landscape. “Having the choice of a shorter duration of cover can reduce costs by over 50 percent, protecting employees for ‘the now’, whilst also safeguarding overheads,” he explained.
As employee mobility continues to rise, with nearly one in four respondents planning to leave their current roles within the next 12 months, Matthews emphasised the role of enhanced benefits in attracting top talent. “Employers offering better benefits could mean attracting the best talent,” he concluded, highlighting the importance of adapting to the changing needs and expectations of the workforce.
With the landscape of employment evolving rapidly, the findings of MetLife UK’s research serve as a call to action for businesses to revaluate their employee benefits strategies, prioritising financial security, flexibility, and well-being support to remain competitive in the talent market.
Amelia Brand is the Editor for HRreview, and host of the HR in Review podcast series. With a Master’s degree in Legal and Political Theory, her particular interests within HR include employment law, DE&I, and wellbeing within the workplace. Prior to working with HRreview, Amelia was Sub-Editor of a magazine, and Editor of the Environmental Justice Project at University College London, writing and overseeing articles into UCL’s weekly newsletter. Her previous academic work has focused on philosophy, politics and law, with a special focus on how artificial intelligence will feature in the future.
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