The employee perks UK employers use to boost staff motivation & wellbeing

What is the Great Perk Search?

*The Great Perk Search is based on a survey of 2315 demographically diverse British adults in part-time and fulltime employment, conducted between March and May 2018.

Perks have gone big. It wasn’t so long ago that employee benefit schemes were thought of as a retention tool for employers. A goodwill gesture to deter staff from jumping to a competitor’s ship. Nowadays, businesses use perks at work as a means of attraction and an expression of character to entrance prospective employees.

Research has proven that good things happen to companies whose employee compensation goes beyond annual leave. Talented job-seekers have a choice, and benefits offered by prospective employers hold a lot of weight in that decision.

Salary is now just one component in the employee value proposition (EVP), and across-the-board pay increments and performance-related bonuses appear to be on their way out. This widespread shift towards employee perks has been catalysed, like every other disrupting force in the commercial world, through innovation.

But here’s the problem: in the midst of all this innovation and media-led excitement, no one is quite sure which of the thousands of staff benefits are actually any use. Is the option to work from home what people really want, or would they rather bring dogs to work? Are napping pods and ping pong tables actually phasing out the stalwarts of yesteryear, like healthcare and cash bonuses? Does it matter that our workplaces are multi-generational, or do we all simply crave meaning and fulfilment?  

The Great Perk Search set out to cut through this noise. From the traditional to the trendy, we compiled a list of 50 employee perks and asked the British working population to separate the gimmicks from the gold dust. Rolling up our sleeves and digging deeper into the data, we aimed to give you an employee benefit benchmark to help transform your strategy by offering the real perks employees want in 2021.

Chapter 1: The perks UK employees really want

Technology has reinvented the employee benefits landscape for good. With such a vast array of benefits now accessible through myriad channels and platforms, it’s little wonder why perks have gathered so much clout in the employee value proposition.

Our research suggests salary is now just the baseline offering, with almost half (45%) of all British workers expecting employers to provide benefits along with money and PTO. This finding will be welcome news for business leaders feeling the pressure to hit ever-increasing year-on-year targets, in spite of the stagnation of real wages and other economic setbacks. (We promised not to mention the B word.)

Not only can the right company perks alleviate some of the pressure of issuing financial rewards to your existing employees, they can also give your recruiters an upper hand. (Just watch them sigh with relief when they notice the compensation section of your job spec goes beyond ‘24 days of annual leave’.)

The Perk Index reveals what the British working public actually think of the most commonly offered employee benefits. As well as shedding light on how your offering is received by your existing staff and prospective employees, it can also provide a benchmark and inspiration.

We asked our respondents to rate the following employee benefits out of one hundred. Here’s how the top 50 ranked – most to least popular.     

10 perks that are hot

Weighing in with a resounding 97.57 out of 100, extracurricular clubs – such as arts and crafts and book clubs – were rated the UK’s most popular perk. Clearly, we’re overwhelmingly keen on group, interactive activities. In a digital age, where many fear technology-induced isolation and the death of real-world interaction, this is surely a cause for relief. In fact, the top five most sought-after perks involved group participation or competitive gaming at some level. 

Other high scorers simply inject a shot of fun into the office environment:

• Pool tables (92.03)
• Ping pong tables (89.38)
• Office sports teams (88.59)
• Video games (87.83)

There are two other notable themes throughout the second half of the top 10 – both perks that save employees money in their personal lives and those that improve their work/life balance featured heavily. Discounts on holidays, flights and hotels (85.55), at supermarkets (85.52) and restaurants and takeaways (83.34) dominate the top 10 to five most popular employee perks. Meanwhile, a day’s annual leave on birthdays weighed in at 85.60 out of 100, ranking as the country’s sixth most popular perk.

10 perks that are not

Despite much media excitement, the flashy perks offered by some of the world’s leading tech brands didn’t go down too well with our respondents. Bring your dog to work policies and napping pods were the least popular workplace perks, scoring a paltry 46.64 and 49.25 out of 100 respectively. Meanwhile the controversial unlimited annual holiday – which can be the cause of untold workplace politics – appears to be a storm in a teacup, ranking 17 out of 50.

Closely following bring your dog to work and napping pods as the least popular workplace perks were:

• Access to a library or further reading (52.97)
• Yoga classes (53.93)
• Access to free financial advice (63.07)
• Charity and volunteering days (63.39)
• Sabbatical opportunities (63.90)
• Team building days (65.93) and the
• The Opportunity to sell and buy holiday days (66.75)

Where are we now?

So that’s what employees really think of perks. But which ones are they being offered? To measure the gap between what’s valued and what's received, we put the question to our respondents.

 

 

Free hot drinks and Christmas parties are the most commonly offered perks to UK employees, with 30% of respondents receiving both. The former may be taken as read for a nation that was built on cups of tea, but the endurance of the infamous Christmas party will come as a surprise to some. (Especially when considering just one in three (34%) employees say they actually enjoy the annual knees-up – but more on that later.)

Almost a third (29%) of the British working population now operate on flexible working hours, which suggests employers are beginning to see the importance of work-life balance. Trailing behind these three are:

• Team building days (12%)
• Charity and volunteering days (11%)
• Discounts on holidays, flights and hotels (10%)
• Discounts at supermarkets (9%)
• Sabbatical opportunities (9%)
• Discounts at restaurants/takeaways (8%)

On the other end of the scale, bring your dog to work (2%), nap pods (2%), extracurricular clubs (3%), yoga classes (4%), exercise classes (4%), duvet days (4%), beer fridges (4%), video games (4%), ping pong tables (4%) and company sports teams (5%) were the perks least likely to be made use of.

The one-hundred-pound gap

Clearly, there’s a huge disconnect between the perks that employees value and the ones being offered. The three that ranked most highly among employees – extracurricular clubs (97.57), pool tables (92.03) and ping pong tables (89.38) – are among the least likely perks to be offered. This is particularly surprising considering they’d cost employers no more than a few hundred quid.

Even though UK employers are doubtless well-meaning in the perks they offer, unwanted benefits don’t just cost companies financially, they also risk relationships – it’s disheartening for managers to see their efforts to engage employees to go to waste. So, according to our data, here are the top five most underrated perks that employees are crying out for.

5 underrated perks your staff are crying out for

Employee benefits can be costly. To play devil’s advocate for a moment, if the average employee assistance programme (EAP) costs £8 per head, an employer of 500 can expect to pay £4k for one year. And that’s just one aspect of your overall wellness strategy. Meanwhile, brands offering technology such as company iPhones could be paying up to a grand per person. That’s £100K for a team of 100.

But, as when launching any people initiative, there are two things you need to consider before starting: your audience and your objectives. Do you aim to make up for tight salaries? To improve your EVP and attract the market’s best talent? To combat employee churn? Your employee benefits offering should resonate with your workforce and act towards achieving those objectives.

It seems the perks most valued are rarely the most expensive; our study unearthed a handful of highly valued employee benefits that come without the hefty price tags.

1. Extracurricular clubs

Is your workplace empty the minute your staff can clock off? That’s probably because there’s nothing for them to do after hours. Hosting group activities outside of official working hours is the best way to strengthen teams without resorting to the ‘bonding’ exercises we all know and loathe. (Incidentally, ‘team building days’ ranked 42 out of 50, putting their image problem in all too bright a light.)

If it was a mathematical equation it would look something like this: Team bonding = engaged employees = good culture = boosted bottom line.  

A word to the wise: let them do all the work. Keep it cheap, let participants deal with the details and don’t dictate the activity. The examples we used in our survey were arts and crafts and book clubs, however, it’s best to drop your team an email or poll and let them decide collectively.

2. Pool and ping pong tables

Only 4% of workplaces have ping pong tables, yet employees ranked them 89.38 out of 100 in terms of value – a similar story went for pool tables. Neither of which cost more than a few hundred quid. Considering the huge demand from employees and relative affordability for employers, it begs the question as to why B2B sports table companies aren’t disrupting the benefits market.  

In the same way, unlimited holiday offerings rarely lead to mass exoduses, staff with free access to pool tables generally tend not to waste hours a day playing them. The only thing left to do is get your office kitted out with one. Or both.

3. Office sports teams

Workplace sports teams ranked fourth out of a possible 50, far outstripping perks such as duvet days and the opportunity to take sabbaticals. Company teams – such as football and netball – are another largely untapped employee benefit, with just 5% of British employers having them up and running.

Office sports teams work for all the same reasons as extracurricular clubs – just with the added elements of camaraderie and physical exertion. Football and volleyball were the examples used in our survey, although, once again, the choice should be theirs. A quick survey will get to the bottom of it.

4. Access to discounts

Discounts and freebies featured heavily in the top 10 most popular perks. Money off holidays, flights and hotels (85.55), supermarkets (85.52), hot drinks (84.63), restaurants and takeaways (83.24) and cinema tickets (81.59), dominated the list of the country’s favourite benefits.  

Discounts will help your staff’s pay cheques go further. As a rule of thumb, it’s best to choose discount benefits that are easily redeemable and genuinely useful.

5. Bring your child to work

Ranking 13th of a total 50, the opportunity to have children cared for in work is a hugely overlooked employee benefit. Childcare is extortionate, and it hits young families the hardest. This will soon be compounded by the government’s planned changes to regulations around state subsidised childcare. (We recently published a blog on the topic – swot up here.).

Childcare benefits will inevitably be more popular among the staff of certain age groups; the score rose to 86.45 among Generation Xers and 87.22 among millennials. However, if you simply don’t have the facilities, it’s worth looking into childcare vouchers as a benefit of their own. But quick: the regulations change 4 October 2018.

Chapter 2: Employee perks & activities for teams

Perhaps the most revealing finding was the widespread demand for sporting and hobby-related activities. The unprecedented leaning towards such perks inspired us to dive deeper into why game-related benefits are so popular, and the types people want in on.  

Most popular hobby perks

Extracurricular clubs – such as hobby-based classes and workshops – were more desired by the British workforce than any other reward or benefit, scoring 97.57 out of 100. But there’s a huge disconnect between supply and demand. Despite their popularity, according to our survey, just 3% of employers offer them. Clearly, organisations are missing a trick.

So what types of extracurricular activities should you be offering? Topping the list were:

• Language classes (29%)
• cooking and baking classes (20%)
• crafts classes (18%)
• dance classes (17%)
• art classes (15%)
• company fitness challenges such as marathons (15%)

These classes and workshops grouped together as ‘hobby-related perks’ appealed to 83% of the UK workforce. But why? Almost half (42%) of our respondents said the driving force behind their reasoning was simply ‘enjoyment’. Meanwhile one in three (32%) were keen as they would not have to fork out for them in their own time.

A practical 40% would like to use these sessions to learn new skills, while just over a quarter (28%) of respondents were interested in extracurricular perks as a way of bettering themselves.

Compared to their male counterparts, women were considerably more likely to look for self-betterment (33% vs 23%) and learning (43% vs 38%) opportunities in extracurricular activities. They were also more attracted to the idea that extracurricular activities lent the opportunity to spend time with colleagues (21% vs 14%). Make of that what you will.

Employee benefits and team performance

We also asked employees what effects extracurricular activities would have on their behaviours and performance at work. One in three (33%) members of the British workforce believe that company hobby or sports-related perks would make them happier at work. Almost as many (31%) of our respondents said that extracurricular activities would make them feel more rewarded, while just over a quarter (27%) said they would assist with team bonding. Some 7% went as far as to say such benefits would make them less likely to fall ill.

Evidently, extracurricular company activities don’t just strengthen teams, but also boost employee morale and even reduce absenteeism.

 

Most popular sport and fitness perks

Other hugely popular types of employee benefits were sports and fitness-related teams and classes, rated 88.59 out of 100, ranking fourth of a total 50. Clearly, there’s a healthy appetite for active perks among the UK workforce, yet just 5% of our respondents said their employers have any in place.

Piqued by the demand, we dug deeper into the types of sports and fitness classes provoking interest. Some 12% of employees would like swimming lessons, while 11% would partake in a company football team. More popular, though, was the prospect of participating in a company-wide fitness challenge such as a marathon or cycling pelton (15%). On the other end of the scale, netball (3%), rugby (3%) and basketball (4%) teams were the least popular among our sample.

If one of those is your favourite sports, there’s no need to be offended – introducing company teams will of course depend on the demographics of your organisation. Perhaps unsurprisingly, millennials were most excited by the prospect of company sports teams, with the value rating jumping to a whopping 97.16 among the age group. But that doesn’t mean the perk only resonates with a younger audience – Gen Xers rated them 85.58 out of 100.

Mixed gender teams (16%) were more popular than single-sex, with just one in 10 (12%) finding the separation necessary. Men were the biggest advocates of gender inclusiveness, with 15% preferring mixed sports teams compared to just 9% of women.

Three things are clear: first, introducing a company sports team should be high on your priority list; second, consider signing your team or company up to a group fitness challenge; third, don’t bother separating teams by gender. While some sporting activities ranked higher than others, the results from this study aren’t conclusive enough to recommend a particular sport. The best way to find out what will go down with your staff is to ask them.

 

Chapter 3: Employee benefits by age group

The conventional wisdom around generational differences in the workplace is often misguided. Not least because very few know the age brackets concerned – even demographers disagree on the finer points. Those pesky millennial whippersnappers, for instance, could be celebrating their 37th birthdays this year. (Incidentally, the fact that millennials are those born roughly between 1981 and 1996 is a good one to have up your sleeve – it never fails to surprise.)

But aside from these sprawling parameters, grouping huge swathes of the population according to their dates of birth can be reductive. Especially when it comes to management styles. That said, there’s now a potential age gap of 50 years between our youngest and oldest workers. And with generational progress grinding to a halt economically speaking, it’s inevitable that age played a role in the perks people desire.

To bring some numbers into the conversation and understand these nuances, we dug into the data to look for age-related trends.

Generation Z

Generation Z – those born between the mid-1990s and early 2000s – are the newest additions to the workforce, and they bring a fresh bunch of expectations to boot.

Our research hints at the fact Gen Zers place more importance on workplace perks than any other age group. As such, over a third (36%) of the cohort said employee benefits make a big difference when they’re considering whether or not to accept a job.

Tragically, though, they feel less entitled to perks than their older colleagues: just 38% said they expect any benefits at all. Whether or not this is symptomatic of the economic hardship they’ve had thrust upon them is hard to say. Though it’s little wonder that the people who had education maintenance allowance taken from them with one hand and a £9k university tuition fee bill given to them with the other might expect less from the world than generations before them.

The youngest working cohort were more likely to prefer smaller, more frequent perks (32%) than larger, annual events such as Christmas parties. Despite this, they were still the generation most enthusiastic about the event (22%). Perhaps they’ve simply had fewer opportunities to regret misusing the company bar tab.

As alluded to above, there is one perk that is sure to attract the best of Generation Z as they enter the job market. Bearing in mind their debt leaving university will likely be upward of £45k – and that up to two-thirds of them will never pay it off in full – any assistance in the area of long-term financial assistance will put employers in poll position.

 

Millennials

Like their generational successors, millennials are more generally more inclined towards small and frequent perks – such as pool tables and extracurricular classes – than annual blowouts and payoffs.

Millennials were altogether keener to receive perks that are likely to further their careers, like training and access to learning resources, than any other age group, with almost half (47%) prioritising them. This is indicative of the unique stage of life millennials will typically find themselves in.

While their predecessors, Generation X, are likely already at the apex of their careers, Generation Z are taking their first steps into the job market. For the latter, education should be part and parcel, whereas the former will be less likely to volunteer for upskilling. Neither stage requires training benefits as much as promotion-hungry millennials.

Their lack of disposable income is evident in the fact millennials most desire discounted perks, such as flights, holidays and hotels (86.06), free hot drinks (85.01), and lunches (83.93). As the first generation to be financially worse off than their parents, it appears millennials are refocusing their aspirations. Some 42% said ‘happiness’ is a key consideration when it comes to the perks their employer offers.

 

10 Employee benefits every millennial craves

The hype around millennials is contradictory: it’ll have you tailoring your management strategies to highly educated, easily distracted, ethically pious, heedless consumers.

Let’s examine who these people are. Demographers aren’t actually agreed on the exact date range, though it’s always between early the 80s and mid-90s. A millennial, therefore, is anyone between the ages of 24 and 37. The chances are they make up the lion’s share of your workforce, which is why we’ve given them a little extra attention.

These are the top 10 perks our millennial respondents most value.

Sports

Okay, maybe some stereotypes are true. The most sought-after perks for millennials are ping pong tables (though interestingly not pool tables), with a whopping 99.15 out of 100 score. But don’t worry if you’re unable to transform your workplace into a sports centre: the second most valued benefit among millennials is office sports teams, which scored two places higher.

Holidays and flexi-hours

It’s interesting to note that ‘birth-o-holidays’ – a day’s annual leave for birthdays – were considered more favourable than the controversial unlimited holiday. Perhaps millennials are wise to the untold drama and office politics uncapped annual leave can cause. Besides, behavioural psychologists believe employees under such schemes are likely to take fewer days leave, suggesting unlimited annual leave is more beneficial for PR than it is HR.

Childcare vouchers

The government is set to change its policy on childcare supplements which will pose problems for many young families. The fact that the opportunity to bring children to work came out fourth of 50 suggests childcare is already a concern for a large portion of the workforce.

Many organisations such as Goldman Sachs, Addison Lee and Yahoo are offering innovative childcare options for their employees. These don’t just relive the hassle and pressure from young parents, but they also encourage women to make swifter returns from maternity leave – a leading factor in the gender pay gap.

A few years ago Goldman Sachs opened the UK’s first on-site creche. Yahoo, meanwhile, ditched its remote working policy in favour of on-site childcare support (perhaps to the behest of a few disgruntled employees). But your businesses needn’t take such drastic action. If you’re not in the position to offer on-site or local childcare facilities, look into introducing childcare vouchers as a company perk. Be quick though, the regulations change 4 October 2018.

Discounts

As the UK’s generational progress continues to grind to a halt, millennials are the first age group to bear the brunt. With stagnating wages and soaring house prices, the age group has considerably less disposable income than at least the previous three. It’s little wonder then that discounts and freebies dominated the top 10 employee benefit list for millennials. Fortunately, it’s a quick fix for businesses.

To learn more about what employee perks millennials are craving, read 10 Workplace Perks Every Millennial Craves.

Generation X

Likely occupying the top rungs of the career ladder, Generation X is the cohort born between the mid-1960s and 1980s. Stereotypes assert Gen Xers to be ‘entrepreneurial spirited and results-driven’. Coming of age in the ‘80s and ‘90s when the concept was popularised, they’re also supposedly more likely to value work-life balance than the other working generations. According to our research, the stereotypes don’t hold much water.

Discounts were deemed an important perk for Generation X similar to the millennials, but with a different focus. Generation X most favoured discounts are:

• Supermarkets (88.84)
• Cinema (83.84)
• Restaurants and takeaways (85.22)

Despite this appetite for discounts, 69% of Generation X take a more sceptical view of employee benefits, believing that in reality, few people use them. Rather than suggesting that the older generation are jaded by the concept of perks, this statistic points towards the fact more could be done to increase the uptake of workplace perks.

Contrary to the individualism characterised by the ‘yuppies’ – a subculture iconic to the cohort – Gen Xers were the most likely place importance on perks that promote teamwork. Way over half (58%) of the age group opted for perks that can also be enjoyed by their colleagues and help them to feel more of a team.

 

Chapter 4: Key takeaways for UK employers

While the research has thrown up a few surprises (who knew knitting clubs were so popular?), it’s also unearthed some clear trends. One of which is the demand for benefit diversity. By and large, today’s employees expect benefits to be regular and varied; in stark contrast to the annual perks of yesteryear.

Another undeniable theme is the widespread demand for team and skill-based perks. Company-wide challenges and competitive sports teams trumped all others, topping the list of 50 benefits. And this is largely good news. Not only are these styles of perks dramatically cheaper than annual bonuses – an expenditure that set Great Britain back a staggering £46.5bn last year alone – but they also promote the employee experience.

This considered, it’s little surprise the country is rethinking its attitudes towards employee benefits, and that HR and business leaders are realising how perks can attract, engage and retain staff. If this strikes a chord with your organisation, the following pages outline the dos and don’ts of employee benefits in 2018.

Finding one: People want to save money

Almost half (48%) of the British workforce want perks that can save them money in their personal lives. With the stagnation of wages and rising cost of living, it’s clear that employees are realising the potential of perks in promoting their financial wellness.

Action one: Help them stretch their salaries

Think about how your staff live outside of working hours. Is their daily commute likely hitting their wallets hard? Perhaps a sizable chunk of their salary is going straight into gym memberships, or on phone contracts, or meals out.

They’ll definitely be spending in supermarkets and retail outlets. With this information, you can begin to map out the steps to easing financial strains.  For instance, providing discounts to the most popular brand providers of the above products and services is the best place to start.

Finding two: Bonuses are dead

If one thing was made clear by our study it’s that annual perks are antiquated. Christmas parties have fallen out of favour with a huge 34% of employees, and a quarter says they would prefer to receive smaller perks that can be enjoyed all year round.

Action two: Provide a variety of perks

So here’s what you need to do about it: provide a diverse selection of perks. This ‘mixed bag’ approach should, of course, be based on what your staff actually want. Consider the demographics of your organisation and the kind of perks that will resonate. Remember benefits should support your staff’s financial, emotional and physical wellbeing.

So while it’s important to provide the discounts and freebies that keep your people in the black, you also need to cater for their emotional wellbeing. So, if you haven’t already got an employee assistance programme (EAP) in place, now’s the time. The bottom line is relevance and effectiveness. Time and resources shouldn't be invested in employee benefits that won’t have a measurable and demonstrable impact.  

Finding three: Benefits are going to waste

More than one in three (34%) British workers believe businesses offer perks that might sound good but no one actually uses them.  

Action three: Help them engage with your offering

There are a few ways to tackle this problem. The first is to have all of your perks and benefits available in one centralised platform, one that’s easily accessible to all. The second is to let them know that it’s there – on a regular basis through multi-channel technology. This is important not just to let them know when it’s updated, but also to catch everyone on the device they use – be it email, mobile, or desktop.

Thirdly, make sure your perks are easily redeemable. People don’t like having to jump through hoops to enjoy what they’re entitled to. Instantly redeemable vouchers are far preferable to physical cards, for example. And online vouchers are typically more popular than in store – though  the option to use both is most advantageous.

Chapter 5: Use employee benefits software you can count on

At Perkbox, we get employee benefits.

Sign up to our employee benefits platform and get benefits that work for you and your staff.

The average Perkbox user saves £1,585.00 every year. How? Free perks alone save users £633 per year! From daily treats like free coffee to rewarding initiatives like a cycle-to-work scheme, there's savings for everyone.

 

 

*These are just a selection of some of the great brands we have on the platform
*Refer to Perkbox savings document (available on request) for full savings breakdown

Your staff want perks that they’ll actually use. So, we give them variety! 

We’ve carefully selected hundreds of discounts and freebies from the UK’s leading brands to be double sure there’s something for everyone. Access perks from categories including:

At Perkbox, we understand employee benefits

Employee benefits are a waste of time if people don’t use them.

Our specialist engagement team is devoted to helping your staff get the most out of the platform. They use:

• Smart engagement technology to track employee behaviour and personalise communications with hand-selected perks.
• Competitions and giveaways to surprise and delight your team.
• ‘Flash Perks’ – limited-time offer freebies – to encourage your team to keep coming back.
• Multi-channel technology to communicate with your staff across all popular devices.

As a result, 250,000 perks are redeemed each month to the value of £2.5m+.

Your dedicated account manager will:

• Onboard your staff to the platform, ensuring you a hassle-free experience.
• Apply their experience and expert industry knowledge to maximise employee engagement in your organisation.
• Pay your platform administrators an office visit to deliver hands-on training.
• Show you how to use your real-time reporting dashboard that displays employee usage, engagement, and total savings.

At Perkbox, we believe that happy and engaged employees perform better and stick around for longer. To that end, we’ve created an employee perks platform that offers teams financial, emotional and physical wellness benefits to help build happier, more productive company cultures. Request a demo to find out how Perkbox can help your business.