Employers overestimate employee appreciation of benefits, GRiD research shows

Employers are significantly overestimating how much staff value their benefits, according to new research from GRiD.

Related topics:  Employee Benefits,  GRiD
Amy Loddington | Communications Director, Barcadia Media
22nd October 2025
Workplace
"Employers need to get better tuned in"
- Katharine Moxham, GRiD

The study highlights a stark perception gap: 92% of employers believe their employees either ‘very much’ (49%) or ‘somewhat’ (43%) appreciate the benefits they provide, while in reality just 52% of staff say they value their benefits - a difference of 40 percentage points.

“Employers need to get better tuned in,” said Katharine Moxham, spokesperson for GRiD. “There is a disconnect between how staff feel about their employee benefits and whether employers have an accurate understanding of employee appreciation. Benefits only deliver value if employees truly recognise and value them.”

GRiD’s research also found that only 57% of employers actively measure how staff perceive their benefits, meaning a significant proportion operate without clear insight into whether their benefits budget is being effectively directed. Among those who do measure staff appreciation, informal methods are most common. Feedback is often collected through managers, HR representatives, or wellbeing champions, while some organisations rely on suggestion boxes, either physical or digital. Others track engagement with benefits content via online platforms, such as measuring clickthrough rates on company intranet pages.

Moxham cautioned that these informal methods may provide an incomplete picture. “We’d encourage employers to use a mix of informal and formal measurements to get an accurate understanding of staff sentiment,” she said.

The research also underscores the importance of offering the right benefits for staff. Group risk benefits, for example, remain particularly popular: more than 11.4 million employees in the UK have group life assurance, often complemented by mental and physical health support services. Moxham added that employers who do not measure appreciation, or rely solely on informal feedback, risk misallocating their benefits budget. “The effectiveness of a benefits package is measured not just by what is offered, but by how well it resonates with staff,” she said.

Saumya Barber, Head of Proposition Development at Unum, described the persistent “wellbeing perception gap” between employer assumptions and employee experience. She emphasised that integrating benefits into digital platforms or intranet systems, combined with anonymised insights from wellbeing tools, can help employers understand what truly resonates and shape benefits that are more personal and valued.

Chris Morgan, Head of Propositions & Product Strategy at Canada Life, which provides group protection to over 2.8 million UK employees, described the findings as a “wake-up call” for HR and employers. He said understanding which benefits employees value ensures investment in relevant and timely offerings. A targeted “less is more” approach may be more effective than offering an extensive list of benefits that employees do not fully understand. Regular reminders, flexible benefits, and accessible digital healthcare services can increase engagement and demonstrate the tangible value of the support provided.

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