Company Sick Pay Tops List Of Most Important Employee Benefits, Reskilling or Retraining… Is Just Above Subsidised Snacks

Paid sick leave continues to top the list of benefits and incentives that are most important to employees, according to new research by HR software and eLearning content provider Ciphr.

A poll of 2,000 UK employees found that over two-thirds (68%) think company sick pay is the most important employee benefit to have – ranking it above all other benefits, incentives and rewards. 

This is an almost identical result to a similar survey Ciphr ran four years ago, when 67% of 1,000 employees said sick pay was the benefit they valued most.  

After paid sick leave, the other most in-demand work incentives in 2026 include annual pay rises that match or exceed inflation – perhaps unsurprising after years of higher living costs – and flexible working hours (selected by 60% and 58% of surveyed employees respectively). 

Pension contribution matching and having extra holiday allowance, on top of statutory minimum holiday entitlement and bank holidays, are also seen as valuable rewards by around half of employees (54% and 50% respectively). 

Many of the benefits and incentives that employees prize most highly are those that support their health, wellbeing and work-life balance, and invest in their skills and future career development – highlighting that while being paid (as a salary or into a pension, for example) is a key motivator to why people work, it’s not all-important. 

Of course, the top 10 for an employee at the beginning of their career is likely to differ from the top 10 of someone with decades of working experience. Different personal circumstances will also affect the priority or importance that people give to certain benefits and incentives. 

Workers looking to build their professional qualifications may value paid study leave (34%), while those looking to work remotely (at home or abroad) may value the option to ‘work from anywhere’ (26%). And others may want private health insurance (37%), a salary sacrifice pension scheme (31%), a four-day work week (28%), discounted gym membership (26%), paid carer’s leave (17%), or pet-related benefits (12%). 

For workers over 45 years old, for example, getting their pension contributions matched (to help them build a bigger pension pot faster) is comparatively more important (according to Ciphr’s findings) than being able to work flexible hours or take extra holiday (58% vs 52% and 48%). 

In comparison, employees further from retirement (people under 45) are more likely to value having flexibility over the hours they work (64%) or upskilling (57%) than pension contribution matching (50%).   

Many organisations see benefits as a core part of their recruitment, retention, and recognition strategies. So much so, that HR leaders named “providing a good range of employee benefits” one of their biggest HR priorities of 2026.

Karen Lough, director of people at Ciphr, says: “A strong, clearly communicated benefits package builds trust, helps reduce absenteeism and attrition, and drives operational resilience.”

She recommends employers take a data-led approach and spend time listening to their employees to understand their needs and priorities, and what benefits and training they want and value. 

“Giving your people greater autonomy to choose the benefits they genuinely want helps make them feel valued and more motivated. But it’s important to be led by the data – use feedback from existing employees, and recent leavers, to understand what you’re doing right and what needs to improve. Interrogate your benefits uptake data – are your employees aware of what benefits they may already have access to? And benchmark to identify where to focus your investment for maximum impact.

“It won’t always be possible or financially viable to deliver on every specific request. But organisations that can act on employee feedback, wherever possible, and provide agile and flexible benefits schemes are more likely to have a more resilient and high-performing workforce.”

Phil Curtis, MD of flexible employee benefits platform FlexGenius (part of the Ciphr Group), adds: “It is becoming ever-more important for employers to respond to the changing needs and health, financial and lifestyle priorities of employees as they progress through their working lives. A workforce that spans different generations, life stages and working patterns no longer responds to a single, fixed benefits package. 

“What supports a graduate in their first job is rarely what supports a parent on phased return, or a senior leader thinking about long-term financial protection. 

“Employees want to feel fairly rewarded for the value they bring to an organisation, and offering relevant, personalised benefits is an essential part of that.” 

Ciphr’s new employee benefits research is available at https://www.ciphr.com/infographics/survey-infographic-the-benefits-incentives-employees-value-most.