Employee satisfaction with benefits is falling despite workers feeling better informed, signalling a widening gap between communication and perceived value.
WTW’s latest EX Intelligence report shows 84 per cent of employees now feel well informed about their benefits, up from 77 per cent last year, yet satisfaction has slipped to 61 per cent, down from 66 per cent.
The report also shows that forward-thinking employers are responding by rebalancing their reward strategies. Confidence in pay for performance remains weak, with only 41 per cent believing their pay reflects performance, but satisfaction with non-monetary benefits has risen to 66 per cent up from 61 per cent in 2024, indicating growing appreciation for broader non-financial elements of reward.
WTW head of employee experience, Europe Gaby Joyner says: “Employees may better understand their benefits, but that doesn’t mean those benefits are truly serving them. Forward-thinking Total Rewards leaders aren’t just tracking usage, they’re listening.
“They’re uncovering which benefits drive satisfaction and retention, often without increasing spend. Employers need to rethink their investments by using the same budget with a smarter impact.
“Finding the balance between financial and non-financial rewards positions companies to outperform peers on engagement, retention and results.”