Only 53% of employees make use of workplace benefits

Posted on 23rd March 2026

Only 53% of UK workers fully understand the workplace benefits available to them, meaning millions could be overlooking valuable perks that they are entitled to.

The findings come from Totaljobs, which also found that nearly a quarter (24%) of workers feel dissatisfied with the benefits they receive in their current role. However, insights from HR decision-makers suggest the issue may not be what’s on offer – but rather a knowledge gap between what businesses provide and what employees realise they’re entitled to.

When asked which benefits workers seem least aware of, HR leaders identified the top three key areas:

Wellbeing benefits (mental health support, virtual GP services, discounts on gym memberships etc.)
Lifestyle benefits (discounts, food, travel, social events)
Learning and development (training, skills, career pathways)

This lack of awareness could have consequences. Among workers planning to look for a new job in 2026, more than a quarter (27%) cited career progression opportunities as a key driver, while 18% said they were motivated by the prospect of better learning and training opportunities.

In other words, organisations may already be offering some of the very benefits employees say they want – but failing to communicate them effectively.

For employers, the consequences are already being felt in the hiring process. More than a quarter (28%) say candidates frequently drop out because benefits do not meet expectations, while 36% have seen an increase in candidate drop-outs compared to the previous year.

In response, nearly a quarter (23%) of businesses have expanded or introduced new benefits over the past year in a bid to retain and attract talent. However, communication may be undermining these efforts. Just 39% of businesses feel confident that employees clearly understand the benefits available to them – pointing to a critical disconnect between what’s being offered and what’s being recognised.

All of this comes at a time when financial pressures remain high. Findings from Totaljobs’ Salary and Benefits Report 2026 show that 53% of workers have cut back on leisure spending, while nearly a third (32%) have reduced spending on essentials such as food, heating and household bills. For many, pay growth is failing to keep pace with ongoing cost-of-living pressures – making the full job package, including benefits, more important than ever.

Commenting on the research, Luke Mckend, Managing Director at Stepstone Group said, “Salary will always matter, but in today’s labour market, benefits can often be the deciding factor. With ongoing cost-of-living pressures and candidates thinking more carefully about what they need from an employer, people are looking beyond pay alone and assessing the full package on offer. Whether it’s access to mental health support, cycle-to-work schemes or meaningful learning and development opportunities, these perks can have a real impact on both financial wellbeing and long-term career prospects.

“At a time when businesses are facing skills shortages and increased competition for talent, employers can’t afford to keep their best perks quiet. Clearly communicating the value of their benefits could be what attracts a candidate to apply, or what convinces a valued employee to stay.”

For more inforamtion visit totaljobs.com.