Employee Benefits as a Competitive Tool for Companies: What are the Trends in 2025?

Why are employee benefits important?

According to several surveys and studies, employees who are satisfied with their benefits are less likely to leave for a competitor. When benefits are well-designed, they can greatly contribute to building a positive employee experience, better engagement, and increased attractiveness of the company in the labor market. Companies that invest in these areas clearly show that they care about their people.

How can these benefits help your company?

1. Employee retention and attracting top talent

Quality employees are key to the success of any company. Companies that offer attractive benefits have a greater chance of attracting and retaining the most talented. From experience, we know that well-designed employee benefits can often be a deciding factor when choosing an employer.

2. Increased productivity and greater engagement

Employees satisfied with their benefits are more productive and engaged. Companies that care about the health and well-being of their employees can expect better performance and efficiency from their workforce.

3. Building a positive company culture

Benefits show that the company cares about its employees. This contributes to a positive company culture and builds trust between employees and management. This helps foster greater cohesion within the company.

4. Gaining a competitive advantage

Companies that offer value-added benefits stand out from the competition and become more attractive to potential employees.

Which benefits are among the most sought-after?

Some benefits, like meal vouchers, phones, and laptops for personal use, or sick days, are now more of a standard than a unique perk.

The most sought-after financial and non-financial benefits currently include: 

• Bonuses
• 13th or 14th salary
• Annual salary adjustments for inflation
• Christmas bonuses (other than performance-related)
• Contribution to pension or life insurance
• Flexible working hours
• 5 or more weeks of vacation
• Fully paid sick leave
• Company car (also for private use)
• Home office
• Sick / wellness days
• Discounts on company products or services

[TIP: If you already provide your employees with the 3rd pillar, offer them the European Pension (PEPP) as an additional option without increasing your costs. This will allow them to prepare for retirement through a third-pillar pension scheme more efficiently.]

I want PEPP in my company

What are the trends in employee benefits in 2025?

1. Health and well-being

In 2025, health and well-being will be at the top of employee benefit trends. Physical health is most often supported through health check-ups, cards for sports and health discounts, gym memberships, and in-company exercise or massage sessions. For improving overall well-being and reducing stress, various therapeutic services, coaches, and workshops to support mental health are becoming popular.

Our Financial Wellness program, which we introduced over the past year, has proven particularly effective. Through a series of educational lectures, we focus on financial literacy and personal finances, which have a close connection to mental and physical health. Financial stress impacts our well-being not only at home but also significantly affects our performance at work, which can negatively influence employers as well. We designed our financial education to be a development activity, not a sales platform. We don’t sell products in these lectures. We educate.

2. Flexibility in the work environment and schedule

Flexibility has become an integral part of the post-pandemic work environment. Employees are increasingly seeking the option to work from home, flexible working hours, or compressed working weeks. These benefits not only improve the work-life balance but also enhance employee engagement and productivity.

3. Workcation – combining work and vacation

A new trend is the concept of workcation, which allows employees to combine work with vacation. This model offers flexibility for remote work, where employees can enjoy new environments away from the office while still performing their job tasks.

4. Quality retirement security

Employees are paying more attention to their financial future, leading to an increased demand for quality pension and retirement plans. The demographic crisis across Europe is a reality, and it’s important to let employees know you are keeping their future in mind. In 2025, the European 3rd pillar (PEPP) is gaining on popularity. It works similarly to traditional 3rd pillar schemes, but it can be more efficient due to better performance and lower fees, allowing employees to secure a higher pension with the same contributions. PEPP may cost employers nothing extra compared to the local 3rd pillar. You can simply add it to the existing options you already offer.

5. Paid leave policies

With a growing focus on protecting mental and physical health, companies are increasingly focusing on improving conditions for rest and regeneration. Benefits such as additional vacation days, sabbatical leave, and even unlimited time off are becoming popular and contribute to maintaining productivity while promoting employee satisfaction and well-being.

6. Professional development

In 2025, opportunities for personal and professional growth will become even more important. Courses, training, and certifications are becoming an integral part of benefits that increase employee motivation and engagement with the company. Many companies today also offer financial support for tuition, allowing employees to further develop personally and professionally.

7. Employee Assistance Programs (EAP)

Employee Assistance Programs (EAP), offering counseling in areas such as work, finances, or family matters, are becoming increasingly important. EAPs can also offer counseling for family caregiving, which is particularly needed in multigenerational households.

[TIP: Join companies which are educating their employees on the important topic of personal finance – without anyone selling anything to them!]

I want Financial Wellness in my company 

Conclusion: Investing in employees pays off

Today, employees expect benefits that are tailored to their individual needs and support work-life balance. For employers, it is important to create a benefit package that aligns with the company's values while supporting employee satisfaction and their professional and personal growth. Strategically designed benefit programs can help companies attract and retain quality employees in a competitive environment.

Work doesn’t have to be only a place for performance, but also an environment for achieving satisfaction and prosperity. The right benefits can certainly help with that.

If you’re interested in our benefits, the European Pension (PEPP) and Financial Wellness, contact us at business@finax.eu.