Standard benefits packages won’t cut it for Gen Z. Here’s how they’re raising the bar and what you can do to meet it in 3 easy ways.
The generation that won’t settle for more of the same. Gen Z is here and they’re changing the game.
Born between 1997 and 2012, they’ve grown up digital, purpose-driven, and ready to challenge how work works. By the end of 2025, they’ll make up a quarter of the global workforce
And here’s the thing: standard benefits packages aren’t cutting it anymore.
If you want to attract, engage, and retain Gen Z talent, you’ll need a benefits experience that feels as personal, digital, and values led as they are. So being part of the Bristol Creative’s network let’s explore how this generation is raising the bar for benefits and what you can do to meet it.
Firstly, digital Natives Expect Digital-First Benefits! Gen Z grew up with smartphones, social feeds, and instant everything. So, when they join your workforce, they expect the same seamless experience from your benefits. A company’s tech influences whether they want to work there. They expect business tools to be as intuitive as TikTok and as mobile-friendly as their banking apps. If your benefits platform feels clunky or old-school? You’ll lose them before they’ve even logged in.
Secondly, they care deeply about purpose. For Gen Z, work isn’t just a job. It’s a platform for impact. Often, purpose at work matters more than a pay cheque. If your benefits don’t reflect your social and environmental commitments, you’re missing a massive engagement driver.
Then there’s the whole avenue called “flexibility”. Gen Z doesn’t measure success by hours logged. They care about outcomes and flexibility of schedules. In addition, there’s flexibility with regards to personalised benefits which I have mentioned numerous times. Forget biscuit-cutter packages. Gen Z expects choice: mental health support (which is non-negotiable being essential not optional), help their sustainability goals/carbon footprint, help with student loan repayments, help with community impact…all good examples.
Why? Well, it’s not rocket science – lower turnover, higher engagement and it makes you stand out in the crowd as an employer.
Gen Z is raising the bar for what great benefits look like. If you’re still offering one-size-fits-all packages, you’re missing a huge opportunity to engage the workforce of tomorrow.
If nothing else just look at
Because if your benefits aren’t easy to access, easy to understand, and easy to love, they aren’t working hard enough.
A couple of weeks back was Earth Day, and the 2025 theme is Our Power, Our Planet. This year, the Earth Day movement is uniting the globe around renewable energy to help us achieve ‘triple clean energy’ by 2030. Sustainability is at the heart of Bristol Creatives and as a community we should constantly strive to innovate and provide eco-friendly employee benefits.
But where do you start? Well, here’s a few pointers to embed sustainable and eco-friendly employee benefits into your business.
With CSR strategies becoming a must-have, companies are coming forward en masse to share their green credentials, giving birth to the term “Greenwashing”, where organisations talk the talk but don’t walk the walk when it comes to employee wellbeing practices. The same is true with greenwashing, but the scrutiny is even higher. If you make a claim about your environmental commitments, you must have the data to back it up. Without the data, it’s simply talk, and you’re at risk of being seen by your clients, consumers, and partners as greenwashing.
Clients and employees increasingly seek businesses that do good environmentally and socially, but they will also want to see the proof. Being branded a greenwasher will harm your reputation among employees, clients and partners, and you could find yourself in court.
So, how do you get CSR right? What are eco-friendly business practices?
There’s a long list of ways you can embed sustainability into your business through eco-friendly benefits and ways of working. Employees want to work for a business that authentically demonstrates ethical behaviours, and they’re scrutinising your corporate social responsibility policy alongside your Employee Value Proposition (EVP). Conscious quitting is a growing trend among socially conscious employees seeking equally socially conscious employers who contribute to the communities and environment in which they exist. By 2025, Millennials will make up nearly three quarters of the global workforce, and they’re looking for socially responsible employers.
Climate anxiety is real, especially among the younger generations, and these are the people who will make up the future workforce. Research tells us that young people don’t think the government is doing enough to avoid a climate crisis and expect their employers to act responsibly.
How can business’s embrace sustainable business practices through eco-friendly employee benefits. How about helping employee’s retro fit their homes…double bonus of improved financial wellbeing with energy bill savings and improvements in sustainability?
You can’t discuss eco-friendly employee benefits without stepping into the world of green car and cycle to work schemes. Both encourage greener ways of commuting to work, whether by an electric vehicle or bike and bring tax and NIC savings to employers and employees. Greener commuting and money back in your pocket! The more employees who take up a salary sacrifice scheme within your business, the more you’ll save on National Insurance Contributions. Cycling promotes physical wellbeing, and healthy people have less sickness absence = another saving to your outgoings. Your employees’ finances also benefit from a reduction in the taxable element of their payslips.
Cycling may not be feasible for those travelling long distances, but with your support, they can still make their commute greener. Offer your employees a salary sacrifice car scheme to create tax savings and make low-emission travel more affordable.
How about considering CSR Partnerships? Embedding paid volunteering opportunities into your strategy boosts morale, social value, and engagement. There are clear benefits to the business, such as being more attractive to potential partners and customers, but it isn’t without cost. Whenever you pay for a person to be out of the business, you’re funding time that’s essentially non-productive from a business output perspective.
Still, most employees think their employers should incorporate paid volunteering days as an employee benefit, claiming it allows them to learn new skills they can bring back to the business. There are employee benefit providers that allow employee to access even more volunteering opportunities within their local communities and is proving incredibly popular – a definite morale booster!
Post COVID flexibility in contracts is becoming the norm, which is excellent because they’re in demand. There are also measurable business benefits, such as a high increase in productivity. Offering flexible, hybrid, and remote contracts helps talent acquisition and retention, with two thirds of job seekers claiming they’d reject a role that didn’t offer flexibility. The more flexible you are as an employer, the more you support your employees in finding a healthy work-life balance, which will increase employee engagement levels.
From a sustainable business practices perspective, there are additional benefits to having a hybrid workforce including lower fuel and energy usage within the office and fewer employees driving to the office means lower emissions that you can chart against your climate or social value pledge.
Wellbeing matters and is THE core key feature within any employee benefits package.
Wellbeing (noun) Definition: A good or satisfactory condition of existence; a state characterised by health, happiness, and prosperity.
We know that employee happiness and wellbeing are directly linked to the benefits they receive. Employees who feel valued and happy at work are more productive and effective in their roles. Additionally, organisations that provide appropriate benefits to support employee wellbeing are more likely to foster engaged and high-performing teams.
In today’s fast-paced, competitive corporate world, prioritising employee wellbeing is no longer a perk, but a necessity.
But why does employee wellbeing matter?
Employee wellbeing goes beyond physical health, it also includes mental, emotional, and financial wellness. Employers who invest in the wellbeing of their workforce not only meet their Duty of Care obligations but also create a positive workplace culture. This results in higher retention levels and enhanced productivity.
According to latest research, 82% businesses have seen their employees demanding more wellbeing benefits, with 56% of employees saying that they would leave their job if another company offered them a better benefits package. In addition, it’s widely recognised the need for benefits packages to address unprecedented employee stress levels causing burnout, decreased engagement, and higher absenteeism, highlighting how great wellbeing and benefits are not just good for employees; they are good for business.
Tangible benefits, especially those with high (perceived) value, can significantly boost employee morale and fulfilment. There is a lot of noise now for electric vehicles supplied as an employee benefit. A brand-new car, for example, is more than just a mode of transport, it’s a symbol of appreciation, recognition and support from an employer. Car benefit schemes not only signify support and recognition to employees, elevating job satisfaction and motivation but they also host several other perks that boost workplace wellbeing and engagement levels. One benefit of the scheme to employee wellbeing is financial peace of mind. Employees don’t need to worry about car loans, credit checks or deposits. A fixed monthly reduction from their salary covers it all- insurance, tyres, VED, servicing, and even breakdown cover.
Sustainable benefits have become vital to the wellbeing of a large proportion of employees in recent years, particularly Gen Z and Millennials. Offering environmentally conscious benefits, like EV schemes, helps promote a sustainable culture that aligns with employee’s values. As an added benefit, it also supports corporate social responsibility (CSR) goals.
It’s the question every Business and HR leader asks. You’ve rolled out new benefits, negotiated better coverage, even launched a whole new platform. But after all the internal comms, budget cycles, and supplier meetings, how do you know it’s working?
If your first instinct is to reach for usage stats or participation rates, you’re not alone. But true success in benefits design isn’t only measured in dashboards. It shows up in how people feel, how they work, and how they talk about your company when no one’s watching.
Here’s what measuring success really looks like.
The most successful benefits programmes don’t just boost uptake; they boost morale. When employees feel genuinely supported and valued, that sense of security and appreciation spills into how they show up at work, and how they talk about your business when they’re not at work.
You see it in how confidently people recommend your company to others. You feel it in team energy, reduced attrition, and stronger engagement. In fact, plenty of research shows that benefits are one of the biggest drivers of overall job satisfaction, right behind pay.
Happiness at work is about creating an environment where people feel like their wellbeing is genuinely supported, and where they can bring their full lives not just their job titles to the table.
A one-size-fits-all approach might be simple to manage, but it rarely delivers what today’s employees need. This is especially true for organisations managing larger workforces with varied cultural norms, regulatory frameworks, and expectations.
Successful programmes prioritise real flexibility: custom allowances, region-specific design, and meaningful choices that reflect employees’ personal lives and priorities. It’s not about offering everything, but about curating something thoughtful and responsive, and allowing space for people to make it their own.
The most meaningful benefits are the ones people remember for life, not the ones they click on most.
Last week I wrote an example about how people remember getting access to fertility support that led to a baby, receiving healthcare when they needed it most, or being able to visit family because of an annual leave purchase scheme. This stuff is harder to put a number on, but infinitely more impactful.
None of these outcomes show up neatly in a usage report. But their impact? It’s enormous. Not just for the person involved, but for everyone who sees that story unfold, and quietly logs it as a reason to stay.
Storytelling isn’t fluffy. It’s one of the most powerful ways to measure emotional ROI and increasingly, it’s what leadership teams care about. If any business leader can explain the value of their benefits programme through stories, not just numbers, they’re doing something right.
Companies are investing huge amounts into employee benefits, but many struggle with low awareness and poor utilisation. This isn’t always a design problem it’s often a communication problem.
If your employees can’t name even three benefits they have access to, that’s not on them. A successful programme is one that people remember. One that shows up in their lives in relevant, timely ways. One they can talk about without needing to consult a portal or policy document.
The bottom line? Focus on impact over optics
A successful benefits strategy isn’t about chasing 80% participation rates or offering the longest list of perks. It’s about building something that matters. That makes people feel supported, empowered, and proud to work for you.
That might look like:
And stories that connect the dots between policy and real life!
Here’s how forward-thinking companies are stretching their employee benefits budget while delivering high-impact employee experiences.
In today’s economic climate, business and HR leaders are under more pressure than ever to do more with less. But making your employee benefits budget go further isn’t just about cost-cutting, it’s about spending smarter. The key? Reimagine you’re spending to create effective benefits for your team.
Here’s how leading organisations are stretching their employee benefits budget while delivering high-impact employee experiences.
One of the biggest misconceptions in benefits design is that higher spend automatically means better strategy. But great benefits aren’t defined by price tags. They’re defined by relevance, accessibility, and alignment with what your people need.
Too often, businesses pour money into legacy schemes or overlapping policies with low visibility and poor utilisation. Instead, a smart approach focuses on realigning spend to improve impact.
Start by asking:
Prevention is better than cure, and cheaper too. Many employers still spend disproportionately on reactive benefits (like medical insurance) over proactive ones (like wellness, mental health and preventative care).
That’s a missed opportunity. Proactive benefits reduce downstream costs, from insurance premiums to sick days. And many of them come baked into existing products, such as virtual GP access or gym discounts. These extras are often buried in fine print. If they’re not visible to employees, they’re not really benefits.
There’s often untapped value sitting in your current scheme. From EAPs to death-in-service benefits, many include ancillary offerings that never get used simply because they aren’t visible.
Audit what you’re already paying for and ask:
Bringing these hidden benefits to the surface can increase perceived value and boost engagement without increasing spend
If you’re in the UK, you have access to powerful tools that can generate budget through tax efficiencies. Benefits like workplace nursery, cycle-to-work, EV leasing, and annual leave purchase can be offered through salary sacrifice, reducing employer NIC contributions.
Those savings can be reinvested elsewhere. For example, one employer used their savings from annual leave trading to fund fertility support and wellbeing allowances all without adding to their overall benefits budget.
You don’t need to spend more to do better. Many businesses can reallocate 20-30% of their current benefits budget by identifying low-impact coverage and redesigning based on what employees’ value.
Consider:
Designing with flexibility opens space to offer more relevant and personalised benefits without increasing cost.
Modern employees expect choice. And personalisation is no longer a luxury, it’s table stakes. Flexible benefits platforms let employers offer a wide range of voluntary benefits, allowances and salary sacrifice options with minimal admin. You can even offer flexibility within existing benefits by allowing employees to adjust their coverage levels or add dependents at their own cost.
A benefit employees don’t know about isn’t really a benefit. Awareness drives engagement, and engagement drives value.
Yet many benefits teams launch new schemes with a single email and hope for the best. Instead:
If you’re not investing in communication, you’re leaving ROI on the table.
Utilisation alone is not the measure of success. Some benefits, like fertility support, menopause care or neurodivergent coaching, will only ever impact a small portion of your workforce. But when they do, they change lives.
When your finance team asks, “Why are we paying for this?” be ready with the answer: because retention, wellbeing, and employee trust aren’t built on averages. They’re built on moments that matter.
Getting more from your employee benefits budget isn’t about trimming. It’s about redesigning with purpose. When you:
…you’ll be amazed at what’s possible!
Following a competitive pitch, SIM7 has been selected by the British Council as a key agency on its framework to supply services over the coming years.
SIM7 will work in partnership with the British Council’s international marketing teams, creating strategic messaging, copywriting and content to drive the organisation’s global initiatives.
This work will involve developing digital and OOH campaigns, creating assets across all channels, and supporting the British Council’s extensive international outreach.
SIM7 will join a handful of leading UK agencies selected to support the British Council’s strategic goals.
About the British Council
The British Council is the United Kingdom’s international organisation for cultural relations and educational opportunities. Operating in over 100 countries worldwide, the British Council builds connections, understanding, and trust between people in the UK and other countries through arts and culture, education, and the English language, reaching millions of people annually.
Says SIM7’s Simeon de la Torre, “As an agency with extensive international experience, this is a perfect partnership for us. We’re excited about working on some of the most significant cultural and educational initiatives globally, and empowering the British Council by delivering the effective messaging that we’re known for.
“Our capabilities closely align with the British Council’s mission to promote and uphold the English language worldwide. Our expertise will enhance the British Council’s efforts to make English accessible to learners across diverse cultures and backgrounds. Through innovative campaign strategies and engaging content, we’ll support the British Council’s role as a global leader in English language teaching and assessment.
“We’re looking forward to connecting with the international communities that the British Council fosters and supports.”
“The British Council is one of the best names in the industry for cultural exchange and educational opportunity, and the SIM7 team are all keen to help them deliver their mission of building connections between the UK and the rest of the world.”
SIM7 is an award-winning creative agency that uses language to empower design. We drive growth by creating brands, campaigns and strategy – for marketing teams around the world. Our experience in international education extends to universities, leadership organisations, business schools and more. For more information, contact Simeon de la Torre sim@sim7creative.co.uk
Business Leaders & HR are under a lot of pressure here in the South-West. Employer NI increases are now with us, limited budgets, and rising expectations from talent. So, when you’re building out a benefits package, it’s natural to prioritise the ones that tick the “most people, most of the time” box. But if you want your benefits strategy to build loyalty, protect productivity, and future-proof your workforce, you must think differently. In my experience, utilisation isn’t always the right way to measure the success of a benefit. Some benefits might only impact a handful of people, but for those people, it can mean everything. If we’re serious about inclusive benefits, we must meet people where they are, even if that need isn’t common.
Because some of the highest-impact benefits are the ones your employees won’t use often. They’re the ones that quietly sit in the background until someone has a real need and suddenly, that benefit becomes the reason they stay, not leave. What do I mean by that? Here’s some examples of what that looks like in practice.
For example, Fertility & Reproductive Health Benefits. Offering fertility support (Egg freezing, IVF, donor support, surrogacy navigation) can feel and sound like a niche benefit. Most employees won’t use it. So why invest?
Because the absence of support comes with hidden costs. Research tells us that 1 in 7 UK couples experience fertility issues. IVF takes a physical and emotional toll: constant appointments, hormonal treatments, failed cycles…all while employees try to show up at work. Many reduce hours, take sick days, or even quietly leave during treatment. Others are forced to spend tens of thousands privately, causing financial and emotional stress. This disproportionately affects women in their 30s and 40s. But it doesn’t stop there: LGBTQ+ employees face unique financial and medical hurdles to build families. Without support, they’re more likely to churn or disengage. Offering benefits here isn’t just about doing the right thing; it’s about retaining high-value talent at a moment when they have big life choices to make. And for every employee who doesn’t use it? They see the offer. They see what kind of employer you are.
Keeping on the similar theme, another example is keeping Workplace Nursery Schemes. Childcare is the *1 reason working parents (especially mothers) scale back or leave the workforce. It’s not anecdotal. It’s backed by data across every sector. Workplace nursery salary sacrifice schemes reduce the cost of registered childcare by allowing payments from gross salary. This can mean thousands saved per year. And not from your HR budget, but via tax-efficient mechanisms. It’s one of the most financially meaningful benefits you can offer parents, yet uptake remains low in most organisations. Why? Because many employers don’t make the most of communicating it. Offering this benefit (and making it visible) removes one of the biggest logistical and emotional barriers to returning after parental leave. And it doesn’t just keep people in their jobs; it helps them re-engage faster, with fewer compromises and more long-term commitment.
Finally, another example are Income protection and Critical Illness benefits. When an employee becomes seriously ill or injured, it’s not just a health crisis, it’s a life interruption. Suddenly, work becomes impossible. And without structured support, income often disappears just when stability is needed most. Income protection fills that gap. It ensures an employee continues to receive a portion of their salary while they recover, allowing them to focus on getting better, not on whether they can pay their mortgage. And that continuity materially improves the odds of a full, confident return to work.
For Business Leaders and HR, this is where lower-utilisation benefits prove their worth. Income protection shortens recovery time, reduces presenteeism, and increases the likelihood that skilled, experienced employees don’t exit permanently. And when other team members see that their employer has their back, even in worst-case scenarios, it builds a level of trust that policies alone can’t buy.
All the above examples do not scale…and that’s the point!
Low-utilisation benefits aren’t supposed to serve everyone, every day. They’re designed to catch people in their most vulnerable, high-stakes moments. That trust is a lever for everything you care about retention, engagement, productivity, culture.
Business Leaders and HR often get told to “think creatively & strategically.” (This is the Bristol Creative’s Community, right?) Here’s the truth: empathy is strategic. Investing in benefits that show foresight, nuance and care is how you build a workforce that stays, grows and delivers. Because when your employees are most in need, they won’t care about your summer social. They’ll care about whether you were there when it counted.
And if you were? They won’t forget it.
For a PR campaign to be successful, it requires several things, but above all, it needs to be strategic, creative and data-driven.
Great campaigns come down to understanding your objectives, your audience and your ability to tell a great story, among a few other things!
When building a winning PR strategy, here are eleven things that will take your PR from ordinary to extraordinary.
Before you start executing, you need to set clear objectives for your campaign. Develop a detailed PR plan that uses the SMART criteria (Specific, Measurable, Attainable, Relevant, Time-bound) to define goals that are big and realistic.
For example, instead of setting a vague goal like “increase brand awareness”, set something more specific like “increase social media mentions by 30% within three months of the campaign launch”. This way, you can track progress and show value to stakeholders.
Understanding your target audience is the foundation of any PR campaign. Use tools like surveys, social media analytics and customer data to create detailed personas and better understand your target audience.
For example, if you’re promoting a new fitness app, you might find that your main audience is health-conscious millennials who use Instagram and TikTok for fitness inspiration. This information would then inform your content and channel strategy. Make sure that your key messages are tailored to the right audience and are going into the right places.
A good story is the backbone of any campaign.
It should align with your brand values, resonate with your audience, and be effectively communicated through media relations. Think about the story you want to tell and how it ties in with current trends or societal issues.
For example, you may want to focus on your environmental credentials, leveraging your governance or sustainability efforts. This way, you promote your product and position your brand as one that aligns with your audience’s core beliefs and ethos.
Not all media channels are equal, and what works for one campaign may not work for another. Choose the platforms and social media channels that your audience uses and loves.
LinkedIn might be a more effective platform than Instagram if your audience consists of business professionals. If you’re targeting a local audience, partnering with local news outlets and community organisations might be more effective than using national media.
Once you’ve chosen your channels, focus on creating content that’s tailored to each platform and audience segment. High-quality, engaging content, including social media posts, is more likely to be shared and picked up by media.
Creating compelling content can position a company as an industry authority.
For a B2B tech company, this might mean creating in-depth white papers for industry publications and snackable infographics for social media. The key is to adapt your message to fit the format and expectations of each channel while keeping consistency in your overall narrative.
Timing can make or break a campaign.
Consider industry events, product launches, press releases, and media lead times when planning your campaign timeline. When plotting out your timelines, look for opportune moments in the calendar and be hyper-aware of any periods which may detract from what you’re trying to do.
A good PR strategy also factors in an element of reactiveness when it comes to timing. Recognise that real-world events can have an impact on your efforts. Don’t be afraid to hit pause on your plans should something like this happen. Just because you’ve planned some public relations activity around a certain time doesn’t always set it in stone.
As PR experts, when creating PR strategies, we would always counsel to be reactive to issues at hand. If that means holding fire on a launch moment, so be it.
And finally, set your key performance indicators (KPIs) at the start of your campaign to measure PR success and track consistently. This might be media mentions, social media engagement, website traffic, or lead generation, depending on your campaign goals.
Use tools like GA4, Semrush or Ahref, social media insights, and media monitoring platforms to gather data. Regularly analyse this to see what’s working and what’s not, and be prepared to make real-time changes to your strategy.
Analytics tools are essential for tracking various performance metrics in PR campaigns.
So, those were seven strategic tips for building a winning PR strategy. But here are four more pro tips from PR professionals that can take your strategies to the next level.
If you want effective media outreach, building relationships with media outlets is crucial.
Research media journalists who cover topics related to your industry and familiarise yourself with their work and preferences to tailor your pitches effectively. Nothing puts a journalist off more than an ill-considered pitch.
Develop a list of key media contacts and build relationships with them through regular communication and engagement.
Going beyond this, you can even reach out to key journalists before you’ve even drafted any press releases. Including them from the outset with themes and ideas brings them on the journey; you can tap their industry knowledge and create mutually beneficial relationships this way.
By developing relationships with media outlets, you can increase your chances of securing media coverage and achieving your PR goals.
Collaborating with influencers can significantly extend your business reach.
Identify influential social media personalities in your industry who align with your company values. Partner with them for endorsements, reviews, or joint content creation.
An influencer doesn’t just live on Instagram and TikTok, though there are a lot of them there. The term influencer has become something of an ugly word in recent years as people associate the term with pushy people who get free things. But all an influencer is, is someone with a platform and presence whom an audience trusts.
That could just as easily be an individual on Linkedin as it could be on TikTok or Instagram
Influencers can help amplify your message, increase brand awareness, and drive website traffic. They promote content and build a community. When selecting influencers, consider their relevance, reach, and engagement rates. By leveraging influencers, you can tap into their established audiences and enhance your PR efforts.
Issues management and crisis management are essential for preparing for and responding to unexpected events that can impact your brand’s reputation.
Issues management involves the prediction of potential issues and crises. Crisis management is the steps you put in place to react to said issues. A crisis response should be quick and transparent to effectively manage the situation.
Ensure that you are prepared for any eventuality, so regular training for spokespersons is important for consistent messaging during crises and preparedness with issues management.
Combined, these plans should include protocols, communication strategies, pre-approved messaging, key contacts and such.
Staying up-to-date with industry trends and best practices is crucial for creating an effective PR strategy.
Continuously monitor industry news, research, and developments to stay ahead of the curve.
Attend conferences, workshops, and webinars to learn from industry experts and network with peers. Stay informed about the latest PR tools, technologies, and platforms to optimize your PR efforts.
By staying up-to-date, you can refine your PR strategy, improve your skills, and achieve better results. Keeping abreast of industry trends ensures that your PR plans remain relevant and effective in a constantly evolving landscape.
A successful PR campaign is a combination of strategy, creativity and data-driven decision-making. By setting clear objectives, understanding your audience, telling a compelling story, choosing the right channels, creating content that’s tailored, timing your campaign well and measuring consistently, you can amplify your PR.
Remember, the best PR campaigns are ones that are agile and adaptable. Listen to your audience, be prepared to pivot and always keep the end goal in mind.
The UK employee benefits landscape is shifting (as always), and business leaders and HR must be prepared. With new regulations including pay transparency laws in the EU, NI increases in the UK, and proposed pension reforms businesses need to stay ahead to ensure compliance while also managing costs and employee expectations.
At first sight, these changes might seem like yet another regulatory burden, but in reality, they offer an opportunity for Business’s here in the South-West to improve transparency, refine benefits strategies, and enhance the employer brand. The key is knowing how to navigate them effectively.
What’s changing?
Firstly, the EU Pay Transparency Directive
What’s that?
In a major move toward greater pay equity, the EU has introduced the Pay Transparency Directive, which will take full effect by June 2026. This regulation is designed to combat pay gaps by ensuring salary clarity and fairness across workplaces.
For Businesses, this means new obligations, including:
Salary transparency during recruitment: Employers must disclose salary ranges in job postings and are prohibited from inquiring about candidates’ salary histories.
Gender pay gap reporting: Organisations with at least 150 employees are required to report on gender pay gaps, with the threshold decreasing to 100 employees after four years.
Right to pay information: Employees can request information on average pay levels, broken down by gender, for categories of workers performing the same work or work of equal value.
While these rules may present administrative challenges, they also push businesses to be more transparent about their pay structures, which can boost trust, attract top talent, and improve retention. The companies that embrace this shift early—by conducting internal salary audits and ensuring pay structures are equitable—will find themselves in a stronger position than those scrambling to comply at the last minute.
Next up..NI increases
In the UK, employer National Insurance Contributions are set to increase from 13.8% to 15% tomorrow! This means a direct rise in payroll costs for businesses, potentially squeezing budgets further in an already challenging economic climate. To manage this impact, many businesses are turning to salary sacrifice schemes, where employees trade a portion of their salary for benefits like pension contributions or other tax-efficient perks. This approach can reduce the NIC burden for both employers and employees while ensuring that workers still receive valuable benefits.
As payroll costs rise, Businesses and HR will also need to re-evaluate benefits spending and look for ways to offer impactful benefits without unnecessary cost increases. Smart benefit strategies such as financial wellbeing programs can help businesses remain competitive without simply increasing salaries.
Thirdly, Pension reforms
Pension reform is also evolving, with a focus on expanding auto-enrolment and increasing minimum contributions. Proposed changes include
These reforms aim to boost retirement savings, but they also increase employer costs and administration.
Saying that, these changes haven’t been made official yet (so a bit of a heads up!) Employers should stay informed about potential future changes to auto-enrolment criteria to ensure compliance and optimal benefits administration (that’s how I can help BTW)
What’s that all mean for Business Leaders and HR?
These regulatory shifts may feel like another compliance headache, but they also create opportunities to refine HR strategies and position businesses as leaders in fair pay and employee wellbeing.
From a compliance perspective, failing to align with these new laws could lead to financial penalties, reputational damage, and even employee lawsuits. Payroll will need to stay on top of NI changes, while preparation for pay transparency reporting requirements and ensure pension enrolment processes are ready for possible reforms is needed.
On the cost side, companies will need to navigate higher payroll expenses from NIC increases and potential pension changes, meaning efficient benefits management will be more important than ever. Instead of simply increasing salaries, businesses can optimise a “total rewards strategy” to ensure every pound spent on employee benefits is meaningful and effective.
But beyond compliance and cost control, these changes also offer a competitive edge. Businesses that embrace transparency, invest in employee financial wellbeing, and optimise benefits to meet new expectations will stand out as top employers by attracting and retaining talent in an increasingly benefits-driven job market here in the South West.
So…How to stay ahead? Here’s some practical steps
Prepare for pay transparency now
Start by conducting an internal salary audit to identify and fix any pay disparities before public reporting requirements take effect. Train managers on fair pay practices, and ensure job ads include clear, competitive salary bands. Taking proactive steps now can prevent compliance issues later.
Offset NIC increases with intelligent benefits
With employer National Insurance contributions rising, rethink your benefits strategy. Salary sacrifice schemes can reduce payroll tax burdens, while flexible benefits platforms allow employees to choose perks that are cost-effective yet highly valued.
Stay ahead of pension changes
Even though pension reforms aren’t yet law, businesses should prepare by reviewing auto-enrolment processes and exploring ways to enhance pension contributions in a cost effective manner. Communicating clearly with employees about their pension options will also be essential in boosting engagement.
Automate and streamline benefits management
Manually handling pay transparency reporting, NIC adjustments, and pension enrolment is a time-consuming burden for HR teams. Investing in intelligent benefits technology to automate compliance, simplify payroll adjustments, and provide real-time insights to optimise benefits strategies.
Gold: Best Expression of a Brand on Social Media Channels
Bronze: Best Use of Copy Style or Tone of Voice
The Transform Awards celebrate excellence in brand strategy and execution across Europe. saintnicks’ work with Ascot Racecourse brought to life the brand’s creative platform, Elegance at Play – combining social-first storytelling, a distinct tone of voice, and thumb-stopping, jaw-dropping content that captured the attention of both loyal racegoers and new audiences alike.
Speaking on the win, Fraser Bradshaw, CEO at saintnicks, said:
“We set out to create a truly ownable brand voice and world-class social content that matched Ascot’s stature as an iconic British institution. To see that work recognised is a brilliant moment for the team and a testament to the power of brave, collaborative thinking.”
If you’re after a creative brand agency that will go the extra mile for your brand, drop saintnicks a line. You can find out more about their brand, campaigns, content and digital expertise here, or reach out to their Client Services Director, Francois d’Espagnac.
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