A whopping 81% of employers noted that getting budget approval was a major hurdle in implementing these changes. The study, conducted by insurance firm Howden Employee Benefits and Wellbeing, along with the Reward and Employee Benefits Association (REBA), surveyed 234 UK employers to gather these insights.

What’s interesting is that half of the employers expressed concerns about how cost increases might impact their benefits strategy. Additionally, nearly three-quarters cited competing HR or business priorities as another barrier to making these changes. Almost the same proportion mentioned a lack of resources or capacity to deliver as a challenge.

Kayla Velnoskey, a senior research associate at Gartner HR, emphasized the importance of innovation in benefits to retain talent, especially in the face of high inflation and stiff competition for candidates. She highlighted the need for companies to think creatively in attracting and retaining top talent beyond just compensation.

Ruth Cornish, the founder of HR consultancy Amelore, stressed the significance of aligning benefits decisions with organizational goals when seeking budget approval. She noted that employee benefits had effectively supported HR transformation for over a quarter of employers in 2023, with almost half anticipating their impact over the next two years.

Cornish emphasized the importance of presenting a compelling business case for benefits changes, backed by data and evidence linking investment to employee engagement, productivity, and profit. Velnoskey echoed this sentiment, emphasizing the role of benefits in enhancing the overall employee experience and contributing to improved business outcomes.

This report, based on a survey of 230 employers representing approximately 1.5 million employees, sheds light on the challenges and opportunities in the realm of employee benefits in the current business landscape.