What types of employee perks improve morale the most?
You don’t build employee morale through gimmicks, one-off treats or benefits that look good on paper. It grows when people feel supported in the moments that shape everyday life: managing money, protecting their health, balancing work and home, and feeling recognised for what they contribute. That matters because morale is more than a cultural measure. It influences engagement, retention, productivity and how employees talk about your organisation. So, instead of asking what perks to offer, employers need to ask a better question: what do our people genuinely value, and how can our benefits help them experience it?
Quick answer: What employee perks improve morale the most?
The employee perks that improve morale the most are those that solve real-life needs. Personalised benefits, everyday savings, health support and financial wellbeing tools tend to deliver the greatest perceived value because employees can see, use and experience them regularly.
In a hurry? Here are our top three takeaways from our blog on the the types of employee perks that improve morale the most.
1. Morale is a business metric, not a nice-to-have: It affects engagement, retention, productivity and how employees experience your organisation day to day.
2. The best perks solve real-life problems: Benefits that help employees save money, protect their health, manage family life, access support or feel recognised will land harder than novelty perks or one-off treats.
3. Investment only creates value when employees can recognise, use and experience support in the moments that matter: If employees cannot find, understand or use a benefit, it will not improve morale. The strongest benefits strategies focus on relevance, accessibility and measurable impact.
Got time to stick around? Let's dive a little deeper.
Top 10 employee perks that improve morale
The top 10 employee perks that improve morale include additional additional annual leave, healthcare support, discounts, cashback, recognition and more.
| Employee Perk | Why Employees Value It | Morale Impact | Business Impact |
| Additional annual leave | More time for family, rest and life outside work | Very High | Retention, wellbeing |
| Healthcare support | Reduces stress and health-related worries | Very High | Retention, absence management |
| Employee discounts | Helps stretch household budgets | Very High | Financial resilience, engagement |
| Cashback programmes | Delivers visible everyday savings | High | Adoption and ongoing engagement |
| Recognition programmes | Helps employees feel valued and appreciated | Very High | Culture, retention |
| Flexible working | Supports work-life balance | High | Attraction and retention |
| Family-focused benefits | Supports major life moments | High | Loyalty and retention |
| Employee Assistance Programmes | Provides support during difficult periods | High | Wellbeing and productivity |
| Gym and fitness benefits | Supports physical health | Medium-High | Health and engagement |
| Salary sacrifice schemes | Makes major purchases more affordable | Medium-High | Financial support and retention |
Notice something?
None of these benefits are exciting because of what they are. They're valuable because of what they enable employees to do.
Why morale matters more than ever
Morale is often mistakenly viewed as a cultural metric, when, in reality, it's a business metric that can drive measurable results.
Research from Gallup repeatedly links employee engagement to stronger organisational outcomes, including profitability, productivity and retention. Employees who receive high-quality recognition are also significantly less likely to be looking for another role.
The CIPD similarly highlights that engaged employees are more likely to drive productivity, innovation and improved organisational performance.
Employee morale by the numbers
| Statistic | Why it matters |
| 94% of University of Salford employees actively used their reward and recognition platform. | Visibility and accessibility matter. |
| 51% of SIG UK employees said the benefits offering had improved. | Better employee experiences drive positive perceptions. |
| Viridor achieved a 94.55% activation rate on its Christmas reward initiative. | Relevant support gets used. |
| Employees receiving high-quality recognition are 45% less likely to leave their organisation. | Recognition directly supports retention. |
The evidence is clear: Morale isn't a "nice to have". It's often a leading indicator of engagement, retention and organisational performance.
The problem with throwaway perks
Throwaway perks are nice in the moment, but often lack long-term impact and real-life value.
For years, many organisations focused on creating workplace perks that looked good on paper.
- Free fruit
- Pizza Fridays
- Office games
- Branded merchandise
Yet many employers discovered something important.
Novelty creates a moment. Value creates a memory.
When employees are worrying about rising living costs, caring responsibilities, health concerns or work-life balance, a one-off perk rarely changes how they feel about their employer.
Support that improves everyday life does.
That's why more organisations are moving away from asking: "What perks should we offer?" and towards asking: "What support helps our people most?"
The employee perks people genuinely value
The employee perks people genuinely value are those that make a lasting difference and measurably improve their lives, including annual leave purchase schemes, money-saving and financial resilience-boosting benefits, ways to improve their health and recognition that feels personal and meaningful.
1. Additional annual leave
One of the strongest morale drivers isn't a product. It's time.
In employee benefits discussions, annual leave purchase schemes are consistently referenced as employee favourites because they help people reclaim something increasingly valuable: time away from work.
Employees use additional leave to:
- Spend time with family
- Manage caring responsibilities
- Travel
- Recharge
- Improve work-life balance
At the University of Salford, 116 employees used the Annual Leave Purchase Scheme in a single year. The initiative supported employee wellbeing while also generating financial savings for the organisation.
The lesson is simple: Sometimes employees don't want more things. They want more life.
My favourite benefit is our Annual Leave Purchase Scheme… I never have enough time… I would rather have time with the people I love and make memories with the people I love than to have, you know, all the money in the world and have no time to spend it. I mean, it sounds like a silly analogy. But actually, if you think about it, you know, if you're working full time, most of your working adult life, it's important to look forward to things, and often those things don't have to be big. They can be small things.
Debbie Evans, Mental Health First Aider on the Pluxee UK podcast
2. Financial benefits that make everyday life easier
Financial pressure doesn't stop when employees log into work. It affects concentration, productivity, wellbeing and morale.
That's why benefits that stretch income often create significant engagement.
These include:
- Employee discounts
- Cashback programmes
- Salary sacrifice schemes
- Cost-saving platforms
- Everyday shopping support
At SIG UK, benefits engagement increased year-on-year following the introduction of solutions focused on helping employees save money on things that matter to them. 51% of employees believed the benefits offering had improved under the partnership.
One employee commented:
I've not felt this valued by a company in a long time.
Value doesn't always come from giving employees more money. Sometimes it comes from helping the money they already earn go further.
3. Healthcare support employees can actually access
Healthcare benefits are becoming increasingly important. However, what employees value isn't just healthcare provision. It's healthcare accessibility.
Employees want support that is easy to access, available when they need it and relevant to their circumstances.
Across employee wellbeing discussions, leaders increasingly reference the importance of making health support available not only to employees but, where possible, to their families as well.
The reason is straightforward. Health concerns create stress. Removing barriers to support creates reassurance.
The University of Salford's Employee Assistance Programme was accessed 278 times in a single year, demonstrating the importance of accessible wellbeing support.
4. Recognition that feels personal
Recognition remains one of the most cost-effective morale boosters available. Yet many organisations still approach recognition incorrectly.
Recognition doesn't improve morale simply because it exists. It improves morale when it feels:
- Timely
- Authentic
- Earned
- Personal
- Meaningful
Research referenced by Pluxee shows recognition can play a significant role in engagement, motivation and retention outcomes.
At the University of Salford, approximately 94% of employees actively used the reward and recognition platform.
One employee described the impact:
I think the positive impact of gratitude is massively underrated, with a small token of appreciation able to completely make somebody's day.
5. Benefits that support different life stages
Not all employees value the same things. A graduate beginning their career often has different priorities to a parent, carer or employee approaching retirement.
That's why the strongest employee benefits strategies move beyond one-size-fits-all approaches.
What employees value changes throughout life
| Life Stage | Employees Often Value | Why It Matters |
| Early Career | Discounts, transport support, savings | Building financial stability |
| Starting a Family | Childcare support, healthcare, flexibility | Managing growing responsibilities |
| Mid-Career | Recognition, annual leave, wellbeing support | Balancing work and home life |
| Caring Responsibilities | Flexibility, EAP support, healthcare | Managing competing priorities |
| Pre-Retirement | Financial guidance, healthcare, additional leave | Planning for the future |
Value means different things to different people. What employees value today may not be what they value tomorrow.
Why "big ticket" benefits have such a lasting impact
Many benefits leaders talk about the importance of "big ticket" benefits. These are benefits employees might only use once or twice, but remember for years.
Examples include:
- Enhanced parental leave
- Healthcare support
- Fertility benefits
- Salary sacrifice car schemes
- Additional annual leave
- Significant recognition awards
These benefits often support employees during major life moments, and those moments are memorable.
Employees rarely remember every benefits communication they receive. They remember how their employer supported them when it mattered most.
That is why these benefits often have a disproportionate impact on morale and retention.
Pause for thought: What could a Green Car Salary Sacrifice Scheme do for your employee value proposition (EVP)?
We know employee value proposition is essential for talent, attraction, and retention, and we know that it improves employee financial wellbeing, and we know that the scheme is very popular among the clients and employees that we provide. It is a big-ticket benefit. So, if you see job adverts on LinkedIn, online, and you see that section where it says. What do you get for working here, you would always like to try and see if there was a green car scheme included.
Nat Parkin, Strategic Marketing & Innovation Lead, on the Pluxee UK podcast
Listen to the podcast with Alison Argall, Business Development & Client Retention Director, Tusker for more.
Accessibility is the hidden morale driver
Accessibility is the hidden morale driver because a benefit sitting untouched in a portal creates no value. Employees can't experience the value from support they can't find, access or understand.
The University of Salford recognised this challenge when some of the employees who needed support most weren't engaging with benefits communications. The organisation introduced dedicated workshops and awareness activities to improve accessibility and participation.
The result was significant growth in engagement and usage.
Perks vs value: why some benefits improve morale, and others don't
Some perks don’t improve morale in the long term for many reasons, including those that aren’t easy to access, don’t solve real-life needs or don’t deliver meaningful value.
It’s time to shift your way of thinking.
| Traditional Perk Thinking | Value-Based Thinking |
| What benefit can we offer? | What problem can we solve? |
| One-size-fits-all package | Different people need different support |
| Launch the benefit | Drive adoption and usage |
| Measure availability | Measure impact |
| Annual communications | Ongoing engagement |
| Benefit access | Benefit experience |
| Employer-defined value | Employee-defined value |
This shift is becoming increasingly important as organisations seek to prove ROI on people investments while also demonstrating visible employee impact.
Real-life value creates real-life outcomes
The best illustration of morale isn't found in benefit specifications. It's found in employee stories-real-life examples of how benefits can improve your employees' lives at home and work.
At Viridor, a Christmas reward helped employees navigate a challenging cost-of-living period. One employee explained:
Once the £100 was deducted from the card, I just had £14 to pay for a three-course meal and drinks for 15.
The quote captures something many employers overlook:
Employees don't remember benefits. They remember outcomes, family meals, time together, reduced financial pressure, feeling appreciated, supported and valued.
Morale isn't created by more perks. It's created by more value
The organisations with the strongest cultures don't necessarily offer the most benefits. They offer the most relevant benefits that fit real life, are accessible, that evolve as employee needs change, and that employees actually use.
Morale isn't determined by what sits in a benefits brochure. It's determined by what employees experience every day.
The question employers now need to answer: Are we offering benefits, or are we creating value?
FAQs
Do employees value the same benefits?
No. What employees value often changes depending on their life stage, financial situation, family responsibilities, health priorities and personal preferences. A graduate entering the workforce may prioritise discounts and savings, while a parent may place greater value on childcare support, flexibility or healthcare benefits. That's why many organisations are moving away from one-size-fits-all benefits strategies and focusing on delivering value that reflects the diverse needs of their workforce.
What matters more: having more benefits or having the right benefits?
For most employees, having the right benefits matters more than having the most benefits. A smaller number of relevant, accessible and well-used benefits is often more valuable than a large benefits package that employees rarely engage with. The organisations seeing the strongest outcomes increasingly focus on creating value employees can experience rather than simply expanding the number of benefits available.
What employee benefits improve morale the most?
The employee benefits that typically have the greatest impact on morale are those that support employees in everyday life. Additional annual leave, employee discounts, healthcare support, recognition programmes, flexible working arrangements and family-focused benefits are consistently among the most valued. The key factor isn't the benefit itself, but whether employees find it relevant and useful.
Why are employee perks important for morale?
Employee perks can help employees feel valued, supported and recognised. When benefits address real-life challenges such as rising living costs, work-life balance or access to healthcare, they can improve employee engagement, job satisfaction and loyalty. Research also links employee engagement with stronger business outcomes, including productivity and retention.
What is the difference between employee perks and employee benefits?
Employee perks are often informal rewards or workplace extras, such as free food, social events or office amenities. Employee benefits are typically structured programmes designed to support employees' financial, physical or mental wellbeing. While both can contribute to morale, benefits that solve real-life problems often create longer-lasting value.
Do expensive employee benefits improve morale more than low-cost benefits?
Not necessarily. Employees often value benefits based on relevance rather than cost. For example, an Annual Leave Purchase Scheme, employee discounts or meaningful recognition can have a significant impact on morale despite requiring relatively modest investment compared to other benefits.
How does employee recognition improve morale?
Recognition helps employees feel appreciated, valued and connected to their organisation. Research referenced by Pluxee highlights that employees who receive high-quality recognition are less likely to leave and more likely to feel motivated at work. The most effective recognition is timely, personal and meaningful rather than generic or infrequent.
What benefits do employees value most in the current economic climate?
Many employees currently place high value on benefits that help stretch household budgets, improve work-life balance or provide access to health and wellbeing support. Employee discounts, cashback programmes, annual leave purchase schemes and healthcare benefits are often viewed as practical forms of support that employees can use in everyday life.
Why do some employee benefits have low uptake?
Low uptake is often caused by poor awareness, limited accessibility or benefits that do not align with employee needs. Employees cannot value support they don't know exists or find difficult to access. Many organisations are now focusing on improving benefits communication, accessibility and user experience to increase engagement.
How can employers find out which benefits employees value most?
The best way to understand what employees value is to ask them. Employee surveys, focus groups, engagement data and benefits usage reports can all provide valuable insights. It's also important to recognise that employee priorities change over time and vary between life stages, personal circumstances and workforce demographics.
Which employee benefits help improve retention?
Benefits that support employees during important life moments often have the greatest influence on retention. Examples include healthcare support, family-friendly policies, additional annual leave, meaningful recognition and financial wellbeing benefits. Employees are more likely to stay with organisations that provide support they genuinely value and use.
Can employee benefits improve company culture?
Yes. Benefits can reinforce company culture by demonstrating that an organisation cares about employee wellbeing, financial resilience, recognition and work-life balance. However, benefits are most effective when they are relevant, accessible and actively used by employees rather than simply being available.
Sources:
How Maslow's Hierarchy of Needs can transform your employee engagement strategy | Pluxee UK
Viridor Case Study | Pluxee UK
Employee recognition: The ultimate guide for employers | Pluxee UK
What higher education employers can learn from the University of Salford | Pluxee UK
this article on social media
Related articles
