Employers are shifting their workforce strategies in 2026 towards stronger employee benefits investment, with 79% planning to either maintain or increase spending on benefits despite ongoing economic pressures, according to a recent Working Advantage employer survey. The findings suggest organisations are moving away from broad cost-cutting and instead prioritising benefits that directly support retention, engagement and employee wellbeing.
The survey comes after a challenging 2025, when many organisations, particularly in the technology sector, implemented large-scale layoffs amid cost pressures. However, the outlook for 2026 indicates a more stable approach to workforce investment, with employers viewing benefits as a strategic tool rather than discretionary spending. Retention, engagement and employee satisfaction emerged as the top workforce priorities for the year ahead.
Rather than introducing new or novelty perks, organisations are focusing on benefits that employees consistently use and value, particularly those that help stretch salaries and support life outside work. Flexible benefits such as employee discount programmes are gaining traction because they allow workers to save on everyday purchases, travel and experiences without significantly increasing employer costs. These programmes also provide employees with greater personalisation and choice in how they use benefits, aligning with broader expectations around flexibility.The workforce demand for such support is rising. According to the survey, 82% of employers reported stable or increased employee interest in work-life benefits, reinforcing the importance of financial well-being and lifestyle support as part of total rewards strategies.
Benefits are also playing a growing role in talent acquisition. In a competitive labour market where workers frequently change jobs seeking better pay, support and culture, benefits packages are increasingly becoming a differentiator for attracting candidates. Employers reported that strong benefits offerings can reduce hiring costs and time-to-fill roles while supporting workforce diversity goals.
Survey respondents consistently ranked retention strategies as their top priority for 2026, followed by engagement and satisfaction, highlighting how benefits are becoming central to workforce stability and employer value propositions in an uncertain economic environment.