Are Employee Benefits the Key to Attracting Top Talent?

If you’re struggling to recruit the right people for your business, you’re not alone. In today’s job market, it’s no longer enough to simply offer a competitive salary and expect top talent to come running. More and more, jobseekers are looking at the whole package — and employee benefits are taking centre stage.

So, are employee benefits the secret weapon in attracting the right people to your team? In short: yes. But like most things in business, it’s not always that straightforward. Let’s break it down.

Why benefits matter more than ever

The way people view work has changed. Flexibility, well-being and purpose now rank just as highly as pay for many candidates. In fact, a recent survey from Matchtech found that 78% of employees would be more likely to apply for a role that offers a strong benefits package — even if the salary is slightly lower than elsewhere.

That’s a big shift from just a few years ago. And for small and medium-sized businesses who may not be able to compete on salary alone, it presents an opportunity to stand out by offering the things that truly matter to people.

What do employees really want?

There’s no shortage of options when it comes to employee benefits — but not all perks are created equal. The benefits that actually make a difference tend to fall into a few key categories.

Flexible working has become one of the most sought-after perks, especially post-pandemic. Whether it’s the option to work from home part of the week, compressed hours or simply a more relaxed approach to start and finish times, flexibility gives people the freedom to balance work and life in a way that suits them.

Wellness support is another big one. Mental health, in particular, is now front and centre for many jobseekers. Access to counselling, mental health days, wellbeing budgets or even just a culture that genuinely supports taking a break when needed can go a long way.

And then there’s professional development. People want to feel like they’re growing. Offering access to training, development budgets or clear career pathways can be incredibly appealing — especially for those who are ambitious but don’t want to be just another cog in a big corporate machine.

Put simply, candidates want to know that their employer sees them as a whole person — not just a job title.

It’s not just about attraction…

Attracting the right people is only half the battle. Once they’re through the door, the challenge becomes keeping them.

A thoughtful benefits package doesn’t just help you hire better — it helps you keep your best people. When employees feel looked after, they’re more likely to be engaged, loyal and motivated. And let’s face it, in a world where recruitment can be time-consuming and costly, holding onto your talent makes a huge difference to your bottom line.

What’s more, the benefits you offer can have a real impact on team morale. Small perks — whether it’s an early finish on Fridays or team lunches — help people feel valued. And when people feel valued, they tend to do their best work.

How to build the right benefits package for your team

Here’s where it gets a bit trickier. Because while there are clear trends in what people want, not every benefit works for every business — or every team.

The key is to listen. If you’re not sure what your employees value most, ask them. A short anonymous survey or a few open conversations can uncover insights you might not expect. You might find that your team would trade in a flashy perk for something much simpler, like more flexible hours or better communication about development opportunities.

It’s also worth thinking about diversity and life stages. A younger team might be more focused on career growth and social events. Parents might be looking for better parental leave or part-time options. What matters is showing your team — and potential new hires — that you understand and care about their needs.

And don’t worry if you can’t offer everything all at once. Start small and build from there. Even modest changes, like adding a wellbeing day each quarter or introducing a training budget, can make a big impact.

Common pitfalls to avoid

In the rush to improve benefits, it’s easy to go off-course. A few things to watch out for:

• Being too vague. If you’re advertising benefits in a job ad, be specific. “Flexible working” can mean all sorts of things — spell out what it actually looks like at your company.
• Offering perks nobody uses. A ping-pong table might look fun, but if your team just wants better holiday entitlement, that money might be better spent elsewhere.
• Not updating your offer. Needs change. What worked two years ago might not cut it today. Reviewing your benefits regularly helps you stay relevant and competitive.

Above all, remember that benefits should feel like a genuine investment in your people — not just a box to tick.

We’re here to help

If designing a benefits package feels overwhelming, you’re not alone. Especially for SMEs, finding the right balance between cost, compliance and employee expectations can be tricky.

That’s where we come in.

At The HR Dept, we work with businesses just like yours to create tailored, sustainable benefits packages that align with your culture, budget and goals. Whether you’re looking to build a full suite of benefits from scratch or simply want to make sure what you’re offering is still fit for purpose, we’re here to guide you.

We’ll also help you stay on the right side of employment law — including avoiding any accidental discrimination or contractual missteps. And because we know every business is different, our advice is always practical, realistic and designed with your team in mind.

Final thoughts

Attracting top talent isn’t about who can offer the flashiest perks or the biggest pay packet. It’s about understanding what people really value, and creating an environment where they can thrive — both personally and professionally.

By offering the right benefits, tailored to your team and delivered with care, you can stand out in a crowded market, boost retention and build a workplace people genuinely want to be part of.

And if you’re not sure where to start? The HR Dept is always just a call away.