Research: Benefits strategies need to evolve to support the realities of modern working life 

Private medical insurance has emerged as the UK’s most sought-after employee benefit, as a new study suggests employees are looking for more personalised support that reflects both their health and financial needs. 

Research from employee benefits platform Zest found that 32 per cent of UK employees would prioritise private medical insurance above any other workplace benefit. It was followed by increased pension contributions (28 per cent), salary sacrifice schemes (17 per cent), flexible wellbeing allowances (17 per cent) and employer support with rising household energy costs (17 per cent). 

The findings, based on a survey of 2,000 UK workers, point to a growing expectation that employers should play a broader role in supporting employees’ long-term financial security, health and overall quality of working life. 

Almost two-thirds (66 per cent) of employees said they want their employer to invest more in workplace benefits, yet engagement with existing benefits remains relatively low. 

Just 59 per cent said they know exactly what benefits their employer offers, while only 38 per cent currently use the full range of benefits available to them. Nearly half (48 per cent) believe their current benefits package is inadequate and fewer than half (47 per cent) feel they receive good value from it. 

Joy Waugh, Employee Benefits Consultant at Zest, said rising living costs are reshaping employee expectations. 

“As living costs rise, demand for financial support has spiked,” she said. “Employees are calling for greater investment in benefits packages, especially support for private medical insurance and boosting retirement savings. 

“Employers must ensure that they’re offering the support employees need otherwise they risk impacting morale, curbing productivity and ultimately losing key talent. In order to boost engagement, employers have to improve communication to understand the needs of their workforce and deliver personalised support that boosts value for money for both employee and employer.” 

The prominence of private medical insurance reflects wider concerns about access to healthcare, with many employers increasingly looking to reduce waiting times for treatment, support earlier intervention and help employees remain healthy and productive. 

Meanwhile, demand for increased pension contributions and employer support with household costs highlights the continued impact of financial pressures on workforce wellbeing. 

However, the research suggests that simply expanding benefits may not be enough. The gap between the benefits employers provide and employees actually understand or use indicates organisations may need to rethink how support is communicated and delivered throughout the employee lifecycle. 

For employers, the findings reflect a broader shift in workforce expectations. Rather than viewing health, financial wellbeing and employee benefits as separate initiatives, organisations are increasingly being challenged to create integrated support that enables people to thrive throughout their working lives.