Employee Benefits
5 mins read

Are Employees Getting the Best Value from Benefits Packages?

How can businesses ensure that employees are making the most of their benefits?

Yugi the Giraffe - March 6, 2025

The world of work has shifted dramatically in recent years, with flexible arrangements, wellbeing initiatives, and personalization now at the forefront of employee expectations. Yet, despite employers investing heavily in benefits, there’s a perception among workers that they lack real value. Recent research by GRiD, the industry body for the group risk sector in the UK, paints a dreary picture: nearly one in five (18%) employers leave employee benefits take-up to workers to initiate, instead of actively encouraging staff to use the benefits available to them. 

“Encouraging the take-up of employee benefits really is a virtuous circle as employees who have a positive experience will also start to communicate the advantages to colleagues,” says Katharine Moxham, spokesperson for GRiD. “While employee-to-employee communication is a vital part of the utilization jigsaw, employers should never become complacent and should always have a strategy in place to encourage take-up.”

So how can employers bridge the gap? And in doing so, how can they ensure that the considerable resources spent on benefits translate into genuine value for staff? 

The growing perception gap

According to a study by Aon Consulting, 96% of employees underestimate their employer's benefit spend, with the majority thinking it amounts to no more than 10% of their salary. In reality, businesses often contribute 20% to 50% of salary in additional benefits. This stark disconnect perfectly highlights why we need to better communicate the true worth of our benefits packages to employees.

Changing priorities

Covid-19 has profoundly altered employee priorities, accelerating many cultural shifts of the 21st century. Over the past two decades there has been an increased focus on flexible working, mental health support, and financial wellness, but the pandemic forced business leaders to take notice. A study by YouGov for Investors in People found that 90% of employees who are offered flexible working consider to be the biggest driver of wellbeing – a sign that traditional benefits, while still important, may need updating.

Employers overestimating their impact

Many employers frequently overestimate how well their benefits are received. One survey found that while two-thirds of employers believe their workers highly value the benefits offered, only 21% of employees feel the same way. This gulf highlights both a serious communication shortfall and a huge missed opportunity for employers to bolster engagement and loyalty.

Further research shows that 34% of employees don't receive regular communications about their benefits, which no doubt serves as a major obstacle to their levels of engagement. If your staff aren’t aware of what’s available or how to use it, they’re far less likely to appreciate or utilize what’s on offer.

Another common problem is that employers don’t always offer the benefits that match their team’s needs. A study of 500 UK HR directors found that 62% believed the benefits they offer either “don’t address what people really need” or “are only useful to some of the workforce”. This misalignment is not only a waste of money but also fails to provide meaningful support where it’s needed most.

Closing the gap: strategies for employers

Despite some of the numbers we highlighted above, you can quickly address these challenges through the following steps:

  • Improve communication: provide regular updates on what benefits are available and how they can be used.
  • Personalization: offer flexible benefits that employees can customize based on their needs and life stages.
  • Regular feedback: use surveys and focus groups to gauge what employees truly value.
  • Education: help your team understand and maximize their benefits through informative sessions or digital resources.
  • Align with modern needs: ensure your benefits package includes options such as mental health support, flexible working, and financial wellness programs.

How YuLife bridges the divide

At YuLife, we help companies follow these best practices by taking an innovative, gamified approach to employee benefits that encourages daily engagement. Rather than assuming employees will only interact with their benefits in times of crisis, YuLife makes wellbeing a regular — even fun — part of everyday life.

“Many benefits are only used reactively,” says Lauren Berkemeyer, YuLife’s Director of Marketing. “At YuLife, we’ve flipped the model. By harnessing gamification, we’re turning employee benefits into a proactive, everyday companion – one that supports better health and encourages your team to regularly engage. As a result, our clients see significantly higher participation rates, making their benefits spending go much further."

Gamification and daily habits

YuLife’s popular employee app employs techniques such as daily challenges, team competitions, and reward-based milestones. This transforms otherwise routine activities — such as walking or meditating — into enticing and rewarding experiences.

And the numbers back it up: YuLife research shows it achieves three times the average engagement rate of traditional group risk schemes. Some 72% of employees download the YuLife app, 43% have used it at least once in the past month, and 17.4% log on up to five times a day. This means employees are more likely to understand and use the Group Insurance Cover – and wellbeing tools available to them, resulting in far greater value perception.

YuLife can help you directly tackle many of the pain points identified in the research above. Employees are not only aware of their benefits, but they engage with them regularly, gaining an appreciation of both the immediate perks (such as earning YuCoin to spend on rewards) and the long-term security (such as life cover or income protection). From an employer’s perspective, this dramatically improves your return on investment.

Share this article

Yugi the Giraffe

Yugi is our YuLife mascot. Like all giraffes they've got a big heart – in fact the biggest heart of all land animals.