Your Employee Benefits Package: The Ultimate Toolkit to Building an Irresistible Offering

A good salary used to be enough. Not anymore. 

In the battle for the best people, a pay cheque is just the price of admission. Your real competitive advantage, the thing that makes top talent choose you over the competition, is your employee benefits package.

Too many businesses see benefits as a cost centre or an afterthought. That’s a massive mistake. A powerful benefits package isn’t just a list of perks; it’s a statement about your culture, your values and how much you value the people who drive your success. It’s your secret weapon for attracting and keeping exceptional talent.

What is in this toolkit?

This isn’t just a list of generic perks. This is your complete toolkit for designing an employee benefits package that gives you a killer competitive edge. 

Included, you’ll find:

• Employee benefits survey template.
• Benefits package design checklist.
• Communication plan template.
• Email announcement template. 
• Benefits budget planner.

What is a benefits package, really?

Let’s cut the jargon. An employee benefits package is the total reward someone receives beyond their salary. It’s the powerful combination of perks, support and opportunities you offer to attract the best people and keep them engaged, motivated and loyal.

Think of it as the tangible expression of your company culture. It’s your answer to the question: “Why should someone work for you?” It’s your statement about how much you value your team and it’s one of the most powerful tools you have to build a business where people are proud to work.

Why your business can’t afford a weak benefits package

In a competitive job market, a strong salary gets you in the game. A powerful employee benefits package is how you win it. It’s your strategic weapon for standing out, driving loyalty and building a culture where people are motivated to do their best work.

For small and medium-sized businesses, it’s how you punch above your weight and compete with the giants who might have deeper pockets. You might not be able to match their salaries, but you can beat them on culture, flexibility and showing you genuinely care about your team’s wellbeing. Weak or non-existence perks send a clear message: you’re not serious about attracting or retaining top talent.

How to build a benefits package that people actually want

Stop guessing what your employees want and start building a package that truly hits the mark. The best employee benefits packages are built on a solid foundation of essentials and then layered with perks that reflect your unique culture and your team’s needs. This is your guide to the core components of a modern, high-impact offering that will turn heads and win hearts.

The statutory benefits you must provide

First, let’s cover the non-negotiables. These are the legally required benefits that every UK employer must provide. They are the absolute minimum and form the foundation of your entire package.

Pension auto-enrolment	Statutory Sick Pay (SSP)	Paid annual leave
You must automatically enrol eligible employees into a workplace pension scheme and contribute to it.	You must pay SSP to employees who are off work sick for a specified period.	Employees are entitled to a minimum number of paid holiday days per year.

The financial benefits that provide security

Beyond the basics, these benefits are about giving your employees financial peace of mind. In uncertain times, benefits that offer a financial safety net are incredibly valuable and show you are invested in your employees’ long-term security.

Enhanced pension contributions	Performance bonuses	Life assurance (or ‘death in service’ benefit)	Income protection
Contributing more than the legal minimum is a powerful way to show you care about your team’s future.	A clear bonus structure linked to individual and company performance can be a huge motivator.	This provides a lump sum payment to an employee’s family if they pass away while employed by you. It’s a low-cost, high-impact benefit.	This provides a regular income for an employee if they are unable to work due to long-term illness or injury.

The health and wellbeing benefits that show you care

A healthy team is a happy and productive team. Investing in your people’s physical and mental wellbeing is one of the smartest business decisions you can make. It reduces absenteeism and shows your team you see them as people, not just employees.

Private medical insurance	Employee Assistance Programme (EAP)	Subsidised gym memberships	Access to mental health support
This gives employees faster access to healthcare, helping them get back on their feet sooner.	A confidential service that offers employees support with personal or work-related problems, including counselling, legal advice and financial information.	Encourage a healthy lifestyle by contributing to the cost of a gym or fitness classes.	This could include access to therapy apps like Headspace or Spill, or providing mental health first aid training for your managers.

The lifestyle and flexibility benefits that build loyalty

This is where you can truly differentiate your offering and build a package that feels personal and modern. These benefits recognise that your employees have a life outside of work and trust them to manage their time effectively.

Enhanced parental leave	Flexible working hours	Hybrid/ remote work options	A day off for their birthday
Offering more than the statutory minimum for maternity, paternity, or adoption leave is a huge differentiator for attracting and retaining talent.	Allowing employees to adjust their start and finish times to fit around their lives.	Giving employees the choice of where they work is now a key expectation for many office-based roles.	A simple, low-cost perk that makes employees feel celebrated and valued.

The employee benefits trends you can’t ignore

In a rapidly evolving world of work, expectations are shifting. Traditional employee benefits packages no longer stand out, instead the modern workforce wants support that feels personal, purposeful and genuinely impactful. 

As competition for top talent intensifies, staying ahead of the latest trends in perks isn’t just a nice-to-have,  it’s essential for building a thriving, future-focused workplace.

The rise of hyper-personalisation

The days of a single employee benefits package for everyone are over. Today’s diverse workforce wants choice. This has led to the rise of flexible perks or ‘flex pots’. This gives your team a set budget to spend on the perks that matter most to them, whether that’s a wellness stipend for their yoga classes, a professional development budget for a new course, or extra pension contributions. It’s the ultimate way to show you trust your team and respect their individual needs.

A non-negotiable focus on mental health

Mental health support has shifted from a ‘nice-to-have’ to an absolute essential. A basic Employee Assistance Programme (EAP) is no longer enough. 

Leading employers are offering comprehensive support that includes direct access to therapy sessions, training managers to become mental health first-aiders and actively building a culture where it’s okay to not be okay. This focus is critical not just for employee wellbeing, but for business performance.

Benefits that reflect company values

Employees, particularly younger generations, want to work for companies that stand for something more than just profit. Your benefits package is a powerful way to bring your company values to life.

• If sustainability is a core value, offer a cycle-to-work scheme.
• If community is important, provide paid volunteering days.
• If you value social responsibility, offer to match employee donations to charity.
  These benefits show you are putting your money where your mouth is and help you attract people who share your purpose.

How to create your benefits package: a step-by-step guide

Ready to build a package that makes a real impact? This simple, four-step process will help you design an offering that is strategic, affordable and valued by your team.

Step 1: Survey your team

Stop guessing. The single most effective way to build an employee benefits package  people want is to ask them. Use a simple, anonymous survey to find out which benefits they currently value and what they’d like to see in the future.

Step 2: Benchmark against competitors

You need to know what you’re up against. Research what other companies in your industry and location are offering. This will help you understand market expectations and identify opportunities to differentiate yourself. Effective talent sourcing strategies depend on a competitive offer.

Step 3: Set a realistic budget

Be clear on what you can afford to spend. A common approach is to budget your benefits as a percentage of your total payroll costs. Remember, a small budget spent on highly valued perks is better than a large budget wasted on benefits no one uses. If you need support, our managed payroll services can help provide clarity.

Step 4: Build and communicate your package

Choose a mix of perks that covers the four key areas: 

• Statutory
• Financial
• Wellbeing
• Lifestyle

Once you’ve finalised your package, communicate it clearly and enthusiastically to your team.

How to communicate your benefits package for maximum impact

A great benefits package is only as valuable as how well it’s understood. Even the strongest offering can go unnoticed if it isn’t clearly and consistently promoted. To ensure your benefits have real impact, weave communication into every stage of the employee experience:

• Highlight benefits during recruitment: Make your perks part of your employer brand story. When hiring employees, show what sets you apart and how your benefits reflect your culture and values.
• Integrate benefits into onboarding: Give new hires a clear overview of what’s available and how to access it. Early education boosts engagement from day one.
• Promote benefits throughout the employee lifecycle: Use regular reminders, internal campaigns, and manager-led conversations to keep your offering visible and top of mind.
• Make information easy to find: Centralise resources, guides, and FAQs so employees can quickly access what they need without digging.
• Use your benefits as a retention tool: When employees understand the full value of what they’re offered, it reinforces your investment in their wellbeing — increasing satisfaction, loyalty, and long-term engagement.

Don’t let a great employee benefits package sit in the shadows. Consistent communication ensures your investment genuinely lands with the people it’s designed for.

Download the toolkit and start building your winning package

It’s time to stop thinking of benefits as a cost and start seeing them as a strategic investment in your most valuable asset: your people. This is your chance to build a package that not only attracts the best but makes them want to stay and do their best work.