Virtue may be its own reward, but it doesn’t put bread on the table. Changing employee expectations and demands in relation to workplace benefits have been well documented, but after a period of sustained high inflation and increased job insecurity, are people really willing to swap purpose and other amorphous benefits for pay? Where does the employee benefits sweet spot lie?
“Employees are increasingly prioritising financial security and wellbeing over trendy office perks which had become mainstream over the past 10 years,” says Morganne Murnin, senior manager and head of reward services with Deloitte Tax & Legal. “Employers are recognising the need to adapt and there is a growing opportunity for employers to align their benefits offering with employee priorities, potentially enhancing both satisfaction and retention.”
Murnin says many companies mention attraction and retention as one of the biggest challenges they face this year.
“However, balancing these priorities with rising costs remains a challenge and companies are focusing on what the return on investment of their benefits offering is, and how it is contributing to the overall employee experience,” she says.
Bairbre Berry, chief people and culture officer with insurance giant CACI emphasises the need to balance pay and non-pay benefits.
“At CACI we have found that the real employee benefit sweet spot lies in combining fair, competitive financial compensation with meaningful, flexible and inclusive support. From the ability to work from abroad for up to eight weeks per year to hybrid working arrangements that respect personal lives, our approach centres on trust and flexibility, while also focusing on employee engagement.
“We know and recognise that people don’t just bring their skills to work, they bring their whole lives. That is why we have introduced these progressive policies, including most recently our paid leave for fertility treatment for both parents, and our menopause policy, ensuring our benefits support, educate and genuinely respect and reflect the diverse needs of our workforce.”
Beyond flexibility, the organisation invests in its people’s long-term growth, professional development and wellbeing, Berry adds.
“Our annual learning and development plan identifies current and future skills needs, with tailored development programmes for managers leaders and emerging talent,” she says. “We also developed our CACI Cares wellbeing programme and culture and values team a number of years ago. These programmes and our employees who volunteer as part of these teams ensure that we focus on the mental and physical health of our people as well as on culture, diversity equity and inclusion – we are passionate about this because we believe that healthy employees and a healthy culture means engaged employees.”
Organisations such as AIB are focused on offering a holistic employee value proposition (EVP) that provides a comprehensive suite of benefits aligned to its people’s needs as they move through different career and life stages, says Keith Gore, head of pensions, employee relations and HR Direct with the bank.
“For AIB it includes our employee benefits; reward and recognition; our role in supporting our communities; our people-led culture; along with our wellbeing, inclusion and engagement initiatives,” he adds.
The most popular non-salary benefits with AIB employees are variable pay, healthcare, pension and leave supports.
“Sports club membership may be appealing for an employer with one central location – otherwise it’s more difficult to provide consistently,” says Gore. “Vouchers for membership of a private sports club would be taxable, making it less attractive than more flexible benefits such as variable remuneration. Other benefits that staff value are development opportunities.”
Age matters in this regard. “Younger employees often value more immediate benefits such as cash through a variable bonus scheme, whereas others with this benefit may choose to engage with a tax-efficient share scheme investment,” says Gore.
“Healthcare is very popular. In AIB over 70 per cent of our staff have signed up to our healthcare scheme. Pension is a longer-term benefit and traditionally has been more valued by more established employees, but AIB, through continuous communication programmes, has achieved high rates of contribution across all age groups.”
Employers should offer a choice of benefits but be careful about making it too wide, Murnin advises: “Offering a wide range of benefits can empower employees by giving them flexibility to choose what best suits their lifestyle, especially in a multigenerational workforce with diverse needs. However, too much choice can lead to confusion and the diminishing of the perceived value. Administratively, managing a broad benefits portfolio can be complex and time-consuming, which is why effective technology solutions are essential for delivery and communication.”
Choice doesn’t need to be all-encompassing, she adds. “It can be introduced in simple, meaningful ways, such as selecting from different health insurance plans. However, employers in Ireland and across the EU, must be cautious about potential pay disparities choice may cause, especially in light of the EU Pay Transparency Directive which is effective from June 2026. Organisations must ensure their flexible benefits structures are not inadvertently creating pay inequalities.”
Gore agrees: “It is important to get the right choice and balance of benefits rather than an endless list of options that may not be valued by employees. Creating a defined EVP ensures that all people know what is available to them.”
