Want to make your workplace more supportive and appealing to everyone? Start with an inclusive benefits package.
Here’s a quick summary to get started:
- Why it matters: Employees who feel supported are 18x more likely to stay. Inclusive benefits improve retention, performance, and profitability.
- Legal must-haves: Comply with the Equality Act 2010, offer fair treatment across protected characteristics, and prepare for upcoming changes like neonatal care leave in April 2025.
- Tailored benefits: Use employee surveys, demographic data, and employee resource groups (ERGs) to identify needs and preferences.
- Key components: Offer health and wellbeing support, flexible working, family leave, and religious accommodations.
- Communication: Most employees don’t fully understand their benefits. Use clear, accessible, and repeated communication to bridge the gap.
- Track and improve: Monitor usage, gather feedback, and adapt benefits to stay relevant and effective.
Takeaway: Inclusive benefits aren’t just good for employees - they’re good for business. Start by listening to your workforce, staying legally compliant, and communicating clearly.
Legal Requirements for Diverse Benefits Packages
When creating benefits packages that genuinely reflect diversity, understanding the legal framework is absolutely essential. In the UK, employers must navigate several significant pieces of legislation to ensure their benefits are fair, inclusive, and legally compliant. These laws lay the groundwork for supporting a diverse workforce effectively.
Understanding the Equality Act 2010
The Equality Act 2010 places clear legal obligations on employers to prevent discrimination and ensure fair treatment. It protects individuals based on nine protected characteristics: age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex, and sexual orientation [1]. Employers must ensure their benefits do not disadvantage anyone based on these characteristics.
Discrimination can take many forms - direct, indirect, through harassment, or even victimisation. For example, if an employer offers gym memberships as a benefit, they should also provide alternative wellness options for employees with mobility challenges. The Act also requires employers to make reasonable adjustments for disabled staff. This could mean adapting health insurance coverage, offering additional mental health resources, or providing flexible working arrangements to ensure that all employees can access the benefits on offer.
To minimise risks, employers should regularly conduct equality and diversity training, implement strong non-discrimination policies, and review workplace practices to ensure they promote inclusion.
Beyond equality, other evolving laws - such as those related to family leave and pensions - also play a critical role in shaping inclusive benefits.
Parental Leave and Pension Regulations
Legal compliance not only protects businesses but also helps create environments that attract and retain a diverse range of talent. Recent updates to family leave laws highlight the importance of adapting benefits to meet new obligations.
From 6 April 2025, new neonatal care leave and pay rights will come into effect. These provide up to 12 weeks of leave and pay for parents whose babies require neonatal care [2]. Statutory neonatal care leave (NCL) is available from day one of employment, while neonatal care pay (SNCP) of £187.18 per week will be available to eligible employees with at least 26 weeks' service. This leave must be taken within the first 68 weeks following the birth [2][3][5].
Employers should take proactive steps to prepare for these changes. This includes training HR teams on the new rights, simplifying notice procedures with template forms, and updating payroll systems to handle the revised calculations. Additionally, employers must offer suitable alternative roles to employees on neonatal care leave in cases of redundancy. Providing extra support, such as through an Employee Assistance Programme, can also help families navigate these challenges.
From April 2025, all statutory family-related payments will increase to £187.18 weekly, with the lower earnings limit rising to £125 [5]. Looking ahead to 6 April 2026, pension scheme administrators will need to be UK-based, which could impact international benefits arrangements [4].
Positive Action for Underrepresented Groups
The Equality Act also allows employers to take positive action to address disadvantages faced by underrepresented groups. However, this must be done carefully to remain within legal boundaries, as positive discrimination - favouring someone less qualified purely to improve diversity - remains unlawful in Great Britain. Positive action is a voluntary approach aimed at reducing barriers, meeting specific needs, and increasing participation among groups sharing a protected characteristic [6].
Before introducing positive action measures in benefits provision, employers should gather evidence to confirm that a genuine disadvantage exists. This can involve analysing workforce data and conducting targeted research. Employers should:
- Collect evidence of barriers
- Implement proportionate measures
- Monitor progress with clear timelines [6]
For example, if senior roles in a company are dominated by employees of a certain age group, positive action could be used when choosing between two equally qualified candidates. However, it is essential to avoid favouring a less qualified candidate solely to improve diversity, as this would breach the law [6].
To ensure transparency and fairness, employers should document the reasoning and evidence behind any positive action steps they take. While setting targets to improve participation is acceptable, imposing strict quotas would cross the line into unlawful discrimination [6].
Assessing Workforce Needs for Tailored Benefits
To create benefits that genuinely resonate with your employees, it's crucial to understand their needs. This involves gathering data from a variety of methods, considering both demographics and regional differences. A well-rounded approach ensures that the benefits offered reflect the diverse needs of your workforce.
Running Diversity and Employee Surveys
Anonymous surveys are an effective way to understand what employees value in their benefits. Eman Al-Hillawi, CEO of Entec Si, highlights the importance of offering multiple feedback channels:
"Collating employee feedback on benefits strategies can be done via several methods including surveys, focus groups, one-to-one sessions, workshops, anonymous surveys or exit interviews. This provides staff with an option they feel most comfortable with and ensures all opinions are captured." [8]
Finding the right balance between anonymity and useful data is essential. Sam Lathey, CEO of Bippit, explains:
"Employers must strike a balance between anonymity and usefulness, and share the mechanics of this balance openly with staff. People need to feel safe to answer questions honestly. It is essential to be able to gain insight from the data. If certain teams or cohorts are very small and [the employer] can't guarantee anonymity, this is something [they] need to acknowledge." [8]
Effective surveys include demographic questions (such as age, gender, and working arrangements) and use a mix of question types like ranking or multiple choice to simplify analysis. However, surveys should be concise - too many questions can deter participation, while too few may fail to yield actionable insights. It's also important to avoid asking about issues the organisation isn’t ready to address and to clearly define the benefits being discussed.
Beyond surveys, champion networks - groups of internal influencers - can offer ongoing feedback on employee sentiment, providing a more dynamic understanding of workforce needs. [8]
Analysing Regional and Demographic Trends
External data can complement internal findings, offering broader context for workforce trends. For example, NHS organisations publish detailed statistics on employee demographics across England, Scotland, Wales, and Northern Ireland [13]. These reports often reveal significant variations between regions and sectors.
The Annual Population Survey (APS) provides additional insights into employment, housing, ethnicity, and more across the UK [13]. Regional data can uncover trends like employment patterns: in September 2023, 37,785 nurses were registered in Wales, but around 7,800 of them worked in England [13]. Industry-specific turnover rates also offer valuable context, such as the hospitality sector's high turnover rate of 52% compared to the UK average of 34% [15].
Technology can further enhance this analysis. Emma Bassett, People Solutions Client Leader at Health Solutions Europe, Middle East and Africa, notes:
"Employees' needs are changing constantly as they react to the world in which we live. Leading employers are using data analytics to connect benefit offerings across total rewards and predict the benefit design changes required to meet future needs." [14]
Analysing existing internal data, like absenteeism patterns or opt-out rates from pensions, can also help identify gaps in current benefit offerings. [8]
Working with Employee Resource Groups
Employee Resource Groups (ERGs) can provide valuable, ongoing feedback to refine benefit strategies. These groups are widely used - 90% of Fortune 500 companies have ERGs [7]. Caroline Rainford, Head of ED&I for Pokerstars & Betfair International, emphasises their importance:
"Utilise the resource groups that you've got. If your business does have employee networks, then you utilise their knowledge. They're a free resource that's readily available who are comfortable talking about the issues." [9][10]
ERGs can influence more than just benefits. Employees who feel they belong are more engaged (91%) and report higher wellbeing (78% compared to 28%). Additionally, racially diverse workplaces often achieve higher revenue growth (11.1% versus 8.6%) [9][10]. ERGs can advocate for benefits that address specific generational, personal, or cultural needs [11].
Real-world examples show their impact. A tech company’s LGBTQ+ ERG successfully advocated for health benefits covering gender affirmation surgeries. Meanwhile, a Berlin startup used its ERG to develop flexible work policies for young parents, improving retention and talent attraction [12].
To ensure ERGs are effective, they need clear goals aligned with the organisation’s DEI strategy, along with adequate support for their leaders. Reverse mentoring programmes - pairing younger employees with senior leaders - can also bring fresh insights into benefits preferences and strengthen cross-generational understanding. [8]
Key Components of Diverse Benefits Packages
Drawing from diversity surveys and regional insights, crafting a benefits package that truly reflects the varied needs of a diverse workforce is essential. Amy McKeown, Consultant at EY, highlights the issue by stating, "Standard health insurance often fails to meet specific employee needs" [16]. A well-thought-out approach involves providing a range of options that cater to different life stages, backgrounds, and personal circumstances. These tailored offerings are the bedrock of an inclusive benefits strategy.
Health and Wellbeing Benefits
With NHS services under growing strain, health benefits have become a key factor in both recruitment and retention. Over 45% of UK workers under 60 live with a long-term health condition [16], making robust health support vital for productivity and job satisfaction.
Private health insurance can complement NHS services, offering quicker access to specialists and diagnostics. Data shows that employees over 40 are responsible for 80% of physical health-related absences, while those under 40 account for 80% of mental health absences [16]. This underscores the importance of age-appropriate health benefits.
Health cash plans are another valuable option, covering everyday healthcare costs like dental, optical, and physiotherapy expenses. These are particularly helpful for employees who don’t need full private medical insurance but could use support with routine medical costs.
Mental health care is another critical area. Employee Assistance Programmes (EAPs) provide access to counselling and mental health resources. Rain Newton-Smith, Director-General of the Confederation of British Industry, advocates for making EAPs tax-free, noting, "A smart intervention that can support employees and strengthen workforce stability" [16].
For employers, offering benefits with measurable clinical outcomes can help reduce sickness absences. Ruth Busby, People and Transformation Director at Great Western Railway, explains, "There's a strong link between feeling well and comfortable at work and wanting to stay. And, as a recruitment tool, it shows that we care as an employer" [16].
Platforms like Perkwise can help HR teams assess and compare health benefit options, from Virtual GP services to health cash plans, ensuring the best fit for their workforce.
Flexible and Family-Friendly Policies
Family-friendly benefits play a significant role in recruitment decisions, with 57% of employees saying they have considered or taken a new job based on better reproductive and family benefits [16]. Policies must reflect the needs of diverse family structures and caregiving responsibilities.
Gender-neutral parental leave policies are one way to ensure fairness. While statutory provisions exist, 65% of employers go beyond these by offering enhanced paid leave [17], showing a commitment to supporting employees during life-changing events.
Childcare support can include on-site nurseries, childcare vouchers, or even emergency backup care services, all of which help working parents manage their responsibilities.
Flexible working arrangements are another proven strategy. With 58% of organisations reporting increased productivity as a result [19], options like compressed workweeks, flexible start and finish times, remote work, and job-sharing arrangements allow employees to balance work with personal commitments. The Caregiver Action Network emphasises, "Supporting caregivers not only enhances their well-being but also improves job satisfaction, productivity, and loyalty" [18].
Support for elder care is also becoming increasingly relevant, with options such as paid leave for caregiving, elder care advice services, and dependent care flexible spending accounts to assist with related expenses.
Religious and Faith-Based Accommodations
Religious inclusion remains an area where workplaces can improve. In the UK, nearly half of workers (47%) feel uncomfortable discussing religious festivals at work, and 32% have faced negative experiences when expressing their religious identity [21]. Providing thoughtful accommodations can foster a more inclusive and respectful workplace.
Paid leave for religious holidays is one way to address this. For example, 31% of Muslims reported having annual leave requests for religious holidays rejected without valid reasons, compared to just 2% of Christians [21].
Offering prayer and meditation spaces, as well as flexible scheduling for practices like Friday prayers or Sabbath observance, can make a significant difference. Additionally, catering that respects religious dietary needs and allowing flexibility in dress codes can help employees feel more comfortable. Alarmingly, 64% of individuals who wear religious dress or symbols report feeling uneasy doing so at work [21].
The key to successfully accommodating religious needs is to respect the principles of the belief system and make a genuine effort to integrate these within the organisation's operational framework [20].
Rolling Out and Communicating Diverse Benefits
Once inclusive benefits have been designed, the next big step is making sure employees know about them and, more importantly, understand them. The reality? Nearly half of employees don’t fully grasp their benefits, and 74% feel they’re missing out on crucial company information. This communication gap directly affects satisfaction - 76% of employees who understand their benefits report being happier at work [23][26].
Despite the effort put into creating benefits packages, only about 40% of benefits are actually used on average [28]. Clear communication can change that. In fact, 82% of employees say understanding their benefits makes them feel more secure, and 50% believe it increases their loyalty to their employer [23].
"Maximising engagement with your employee benefits is an integral step to helping your people understand and value the solutions you provide."
– Lee Fitzgerald, Employee Benefits Consultant [22]
Clear Communication Methods
To bridge the gap, benefits communication needs to be clear, accessible, and tailored to different learning styles. Research shows people need to hear a message seven times for it to stick [27]. That’s why repeating key information across multiple channels is crucial.
Start with simple, jargon-free language. Instead of saying something like "enhanced parental leave provisions exceeding statutory minimums", just say, "we offer 12 weeks’ paid parental leave, which is more than the government requires." Straightforward explanations help everyone understand.
Accessibility is another must. Around 18% of people in the UK live with a disability [27], so it’s essential to make sure materials are inclusive. Conduct WCAG AA accessibility audits, add subtitles to videos, use alt text for images, and avoid embedding text in graphics.
Reaching employees through multiple channels is also key. Face-to-face events, for example, can boost engagement by over 60% [27]. Pair these with written materials, videos, and digital resources to ensure your message gets through.
Personalisation makes communication more effective. Tailor messages based on factors like age, department, or family status. Managers play a big role too - they’re often the most trusted source of workplace information. Equip them with demo videos, how-to guides, and talking points for team meetings. Adding discussions about wellbeing benefits to one-to-one meetings can also keep the conversation alive.
Technology can simplify things. Platforms like Perkwise offer comparison tools to help employees navigate their options, making complex decisions easier. Just make sure any platform you use is intuitive and works across various devices.
Finally, don’t forget to gather feedback. Regular pulse surveys can highlight gaps in communication, and employee input is invaluable for improving how benefits information is shared. Considering that only 51% of employees feel HR communication is open [28], there’s plenty of room to make things better.
These strategies lay the groundwork for addressing regional differences across the UK.
Regional Considerations in the UK
The UK’s diverse regions call for thoughtful adjustments to benefits communication. England, Scotland, Wales, and Northern Ireland all have unique needs, and tailoring your approach can make a big difference.
Language is one area to consider. In Wales, for instance, offering benefits information in Welsh can be especially helpful, particularly for public sector organisations. Similarly, in areas with significant ethnic minority populations, providing materials in community languages shows genuine effort to be inclusive.
Communication styles also vary. What works in London might not resonate in rural Scotland or Northern Ireland. UK-wide announcements should include regional angles that highlight local impact [25]. Tailoring messages for Wales, Scotland, and Northern Ireland helps acknowledge differences in media preferences and regional priorities [25].
Local partnerships can add credibility. Collaborating with regional healthcare providers, local councils, or community organisations can make benefits feel more accessible. For example, working with a local mental health charity or childcare provider can make your offerings more relatable.
Timing matters too. School holidays differ across the UK, which can affect when family-focused benefits communications are most effective. Local events, festivals, or economic conditions may also influence how and when messages are received.
Accessibility needs can vary by region as well. In areas with an older workforce, larger print materials or in-person sessions might be more effective. On the other hand, younger, tech-savvy employees may prefer digital-first strategies.
"Central to promoting inclusive communication is acknowledging that people have different communication preferences and needs – all of which should be respected."
– Charlotte Leeming, Broadcaster and Journalist [24]
Don’t forget neurodiversity. With about one in seven people estimated to be neurodivergent [24], breaking information into smaller, digestible pieces, using clear headings, and avoiding information overload can help ensure everyone can engage with the content.
Ultimately, successful communication across the UK depends on understanding the diverse makeup of your workforce and avoiding a one-size-fits-all approach. Tailoring your methods to fit regional and individual needs ensures your message reaches everyone effectively.
Tracking and Improving Benefits Over Time
To ensure that employee benefits remain relevant and effective, it’s crucial to continuously monitor and refine them. Designing a benefits programme is just the beginning; without regular tracking, even the most well-intentioned offerings can become outdated or underused.
Recent research shows that 42% of employees are not fully aware of their benefits, and 58% of HR leaders report low engagement with wellbeing initiatives [31]. This gap between what’s provided and what’s actually utilised highlights the importance of ongoing evaluation and improvement.
Measuring Benefits Uptake and Impact
The first step in understanding whether your benefits are hitting the mark is to track their usage. Low uptake might signal a mismatch between employee preferences and the benefits provided, or it could point to a lack of awareness [29].
Start by comparing the benefits offered with their actual usage rates. Breaking this data down by demographic groups can help identify specific gaps or under-served employee segments. For example, younger employees might prioritise flexible working options, while others may value health-related benefits more.
Engaging directly with employees through surveys or focus groups can reveal whether their needs are being met and highlight barriers to accessing certain benefits. These conversations can provide deeper insights into usage patterns and help refine your offerings.
Key metrics to monitor include absenteeism, retention rates, productivity, and employee health improvements [32]. For instance, absenteeism costs American employers over US$226 billion annually in lost productivity, and UK employers face similar challenges [32]. Tracking these figures can help determine the return on investment of your benefits programme.
Take Netflix as an example: after introducing a flexible benefits programme in 2018, the company saw a 40% reduction in employee turnover within two years [34]. Benchmarking your benefits against industry standards can also help identify areas for improvement, ensuring your offerings stay competitive.
To keep your data current, avoid relying solely on annual reviews. Instead, collect feedback through quarterly surveys and monthly reports. This approach allows you to respond more quickly to shifts in employee needs or external factors.
Staying Current with Legal and Social Changes
Benefits strategies must evolve alongside changes in legislation and employee expectations. Regular updates are essential to remain compliant and relevant in a rapidly changing environment.
For example, upcoming changes in 2025, such as the Employment Rights Bill and updates to paternity leave policies, will directly impact benefits packages. These include adjustments to statutory sick pay, the National Minimum Wage, and National Insurance contributions, among others [30]. Staying ahead of these legal changes helps avoid compliance risks while ensuring benefits remain valuable.
Beyond legal updates, broader trends also shape employee priorities. For instance, in 2021, there was a surge in demand for health-related benefits due to the pandemic. By 2022, rising energy costs and inflation shifted the focus to financial support [31]. Monitoring these trends ensures your benefits align with what employees value most at any given time.
Regular reviews of contracts and policies can also help identify necessary budget adjustments for payroll or fraud prevention measures. With 63% of employees prioritising additional benefits over a pay rise when job hunting [33], and 60% valuing perks as much as their salary [34], it’s clear that benefits play a significant role in attracting and retaining talent.
Emerging trends, such as enhanced mental health support, financial wellness programmes, and flexible working arrangements, are becoming increasingly important. Platforms like Perkwise can help track these developments, making it easier to evaluate new options and compare them with existing offerings.
Conducting quarterly usage reviews and annual assessments ensures your benefits remain dynamic and responsive. The most successful organisations treat their benefits as evolving programmes, recognising that what worked two years ago may no longer meet today’s needs. This proactive approach not only ensures compliance but also demonstrates a commitment to supporting a diverse workforce.
Building a Supportive Workplace Culture
As we've seen, tailoring benefits to meet the diverse needs of employees isn't just a nice-to-have - it delivers measurable business results. Crafting inclusive benefits packages goes beyond ticking boxes; it's about creating a workplace where every individual feels valued and supported. The impact is clear: companies with the smallest gaps in experiences between white employees and people of colour achieved 11.1% revenue growth, compared to 8.6% for those with the largest gaps [37].
The key to success lies in aligning benefits with both organisational values and the genuine needs of employees. As one expert insightfully notes:
"Benefits may not be the first thing that comes to mind when considering companies' missions and values. But the best benefits turn something abstract but important into something tangible that supports employees" [36].
This alignment fosters authenticity, which is critical when only 18% of employees feel their organisation's stated values truly match its culture [35]. When benefits reflect an organisation's true values, they encourage broader team involvement and foster a more cohesive workplace.
Taking a collaborative approach builds trust and gives employees a sense of ownership. When employees see their feedback leading to real policy changes, it sends a clear message: their voices matter. This is especially important given that employees who trust their colleagues and perceive fair treatment are nearly 10 times more likely to feel satisfied in their jobs [37].
The financial case for flexible benefits is equally compelling. They contribute to a 25% increase in retention rates and 21% higher profitability [39]. For underrepresented groups, the impact is even more pronounced, with 74% stating that flexible benefits played a significant role in their decision to stay with their employer [39].
Creating a supportive workplace culture through inclusive benefits requires commitment from all levels of the organisation. As Michael McCarthy from Harvard DCE Professional & Executive Development explains:
"A positive culture begins with leadership. The c-suite needs to see the value in having a positive workplace culture and embody the behaviours that support the culture. When people throughout the organisation see senior leadership living the values, they will follow suit" [38].
Inclusive benefits aren't a one-time initiative - they demand ongoing evaluation and employee engagement to stay relevant. When done effectively, these efforts foster an environment where diversity is celebrated and valued. The results speak for themselves: companies with inclusive practices see 19% more growth than their competitors [39].
Tools like Perkwise can help organisations maintain a framework for continuous improvement, allowing benefits to evolve alongside the workforce's changing needs. The aim isn't immediate perfection but rather building a system that adapts and improves over time, ensuring every employee has the opportunity to thrive.
FAQs
How can employers gather and use employee feedback to create inclusive benefits packages?
To create benefits packages that truly address the needs of a diverse workforce, employers should prioritise gathering input directly from their employees. This can be achieved through methods like anonymous surveys, focus groups, or one-to-one conversations, ensuring everyone has a chance to share their perspective.
Once this feedback is collected, analysing it carefully can reveal patterns and preferences that reflect what employees value most. This insight allows employers to tailor benefits that appeal to a broad range of individuals. Additionally, using platforms that offer reviews and insights on employee benefits can support more informed decision-making.
It's also important to keep benefits up to date. By regularly revisiting and adjusting them based on ongoing employee input, employers can ensure these packages stay relevant and meaningful.
How can companies prepare for new benefits regulations, such as neonatal care leave?
To get ready for the upcoming regulations surrounding neonatal care leave, businesses should consider the following actions:
- Revise policies: Update your employee benefits policies to include the statutory neonatal care leave, which allows eligible parents up to 12 weeks of leave for babies born on or after 6 April 2025.
- Upgrade payroll systems: Make sure your payroll systems are equipped to handle the statutory pay entitlements associated with neonatal care leave.
- Equip HR teams: Train your HR staff to fully understand the new regulations and ensure they can communicate these changes effectively within the organisation.
Taking these steps early will not only help your company stay compliant but also show genuine support for employees during significant life moments.
How can organisations ensure employees understand and make the most of their benefits packages?
Organisations can make benefits packages easier to understand and more engaging by focusing on clear and consistent communication. Start with a well-thought-out communication plan that delivers updates regularly through different channels like emails, intranet posts, and team meetings. This way, employees can access information in a format that works best for them.
Stick to plain, straightforward language when explaining benefits, avoiding unnecessary jargon to ensure everyone can follow along. Create opportunities for employees to provide feedback - whether through Q&A sessions or anonymous surveys - so they can raise questions or voice concerns. This not only helps HR teams identify areas where clarity is needed but also reassures employees that their input is valued, making it easier for them to make the most of their benefits.