Desk-based organisations offering medical health insurance experience a 14% improvement in employee retention, a 12% increase in talent attraction and a 9% boost in employee wellbeing scores, according to the results of a new study.
Reward Gateway | Edenred, a global employee engagement platform supporting over 4,500 companies and 8 million users, conducted an Economic Value Study to quantify the impact of employee engagement on business performance.
The research found that organisations offering private medical insurance saw significant improvements in retention, talent attraction and overall employee wellbeing.
The Business Case for Employee Benefits
The study also highlighted other benefits that contribute to employee engagement and business performance:
- Personal Accident Insurance: Frontline organisations offering this benefit saw a 26% improvement in retention and a 19% increase in talent attraction.
- Profit Share Bonuses: Implementing profit-sharing schemes resulted in a 7% better alignment between employee and company values, an 11% improvement in talent attraction and a 7% increase in growth levels.
- Spot Bonuses: These contributed to an 8% higher employee Net Promoter Score (eNPS), a 5% improvement in retention and a 3% boost in employee wellbeing.
Nebel Crowhurst, chief appreciation officer at Reward Gateway, said the benefit for companies offering a range of options to staff was clear.
“This research provides compelling, quantifiable evidence showing the direct impact employee engagement has on business success. We’ve found that companies with more engaged workforces are significantly more likely to see better business outcomes,” he said.
Crowhurst gave an example of “simple benefits like food provisions [that] can boost retention by over 10%” and that it could soar into double digits by providing private medical insurance to office workers, as well as attracting fresh talent.
“Furthermore, the power of reward mechanisms such as profit sharing in driving growth and alignment is clear.,” said Crowhurst. “These findings underscore that investing in employee engagement, through well-considered benefits and recognition, is not just a cost but a tangible driver of improved business performance and long-term sustainability.”
Employee Benefit Trends in 2025
In 2025, employee preferences for benefits have evolved, with a focus on long-term financial security and wellbeing. Research by Zest, an employee benefits technology provider, found that 30% of employees prioritise higher employer pension contributions, rising to 41% among those over 55. Private medical insurance remains a close second, desired by 29% of employees, increasing to 39% among the over-55s.
Other sought-after benefits include employer contributions to at-home energy costs and discounts or vouchers for high street shops, each desired by 23% of respondents. Wellbeing allowances, paid mental health leave and workplace savings schemes are also gaining popularity.
The Importance of Tailored Benefits
Employers are recognising the need to offer benefits that address the diverse needs of their workforce. Flexible working arrangements, such as hybrid models, have been shown to improve employee wellbeing and productivity. A study found that 75% of UK workers felt less stressed and more productive when working part of the week from home.
Childcare benefits are also proving valuable. A study by Moms First and Boston Consulting Group found that company-sponsored childcare benefits significantly boost employee productivity and retention, providing up to a 425% return on investment.
The findings from Reward Gateway | Edenred’s Economic Value Study demonstrate, say experts, the importance of strategic employee engagement initiatives. By offering targeted benefits and developing a culture of appreciation, organisations can enhance retention, attract top talent and improve overall business performance, they say.