Phoebe Hutton
When it comes to attracting and retaining top talent, taking a holistic total rewards approach is important. But which benefits do employees truly value in 2025? Our latest Workplace Engagement Index reveals the top employee benefits that your people want the most, offering key insights for HR and business leaders looking to build a more engaged and motivated workforce.
What are employee benefits?
Employee benefits are additional perks and compensation provided by employers beyond salaries. These benefits play a crucial role in attracting and retaining top talent while also improving overall employee engagement and job satisfaction. Shifting the focus from salary to total rewards can support employees' financial, physical, and mental wellbeing, contributing to a healthier and more productive workforce.
When Australian employees were asked about the benefits they value most in addition to salary, the results were as follows:
- Bonuses or performance-based incentives (53%)
- Health insurance (45%)
- Employee discounts (36%)
- Free birthday leave (35%)
- Meals/food provided (34%)
- Wellbeing Stipends (31%)
- Mental Health Support (30%)
- Commuter Benefits (29%)
- Paid parental leave (23%)
So, what does this mean for your business? Let’s have a look at each of these benefits and what’s involved.
1. Bonuses or performance-based incentives
Topping the list, more than half (53%) of employees value bonuses and performance-based incentives as a key benefit. This signals a clear preference for financial rewards tied to achievements, giving companies a strong reason to implement well-structured incentive programs that recognise and reward high performance.
It’s clear that employees want to be recognised for their hard work. Providing financial incentives tied to performance not only boosts motivation but also reinforces a culture of achievement and appreciation.
2. Health insurance
Health insurance continues to be a high-priority benefit, ranking second on the list. In an era where healthcare costs are rising, employees see employer-sponsored coverage as a crucial part of their overall compensation package. Employers investing in comprehensive health plans will have an edge in attracting and retaining top talent.
3. Employee discounts
A well-designed employee discounts program can provide significant cost savings on everyday expenses, from retail to travel. With 36% of employees valuing this perk, offering employee discounts on a wide range of products and services can enhance overall job satisfaction.
Ramsay Health Care is a great example of an organisation that uses a total rewards approach focused on financial wellbeing, including employee discounts. By leveraging the Reward Gateway platform, Ramsay has successfully supported its diverse, predominantly frontline, workforce while addressing attraction, retention and wage pressures.
They introduced Ramsay Rewards, a financial wellbeing and benefits platform designed to provide everyday savings on essentials, helping employees increase take-home pay and host their internal wellbeing programs, including psychology, health plus discount and pharmacy discounts. They saw an impressive $155.2K in employee savings in 2023, growing to $364.6K in 2024.
4. Free Birthday leave
More than a third (35%) of employees appreciate free birthday leave, highlighting a growing preference for personalised time-off benefits. This small yet meaningful perk can contribute to a positive workplace culture and improve work-life balance.
5. Meals/food provided
Company-provided meals or food stipends are another sought-after benefit, with 34% of employees valuing access to free or subsidised meals. This not only supports financial well-being but also encourages social interaction in the workplace.
Why not offer company breakfasts? A simple spread of fruit, yogurt, or pastries can help boost morale, connection, and start the day on a positive note.
6. Wellbeing stipends
With workplace wellbeing a rising priority, 31% of employees see wellbeing stipends. Which can be used for gym memberships, wellness programs, or mental health support as a valuable benefit. Investing in employee wellbeing has been shown to improve productivity and reduce burnout.
7. Mental health Support
Closely tied to wellbeing, mental health support ranks as a top benefit for 30% of employees. Workplaces that offer counselling services, mindfulness programs, or Employee Assistance Programs (EAPs) demonstrate a strong commitment to employee mental health.
8. Commuter benefits
Commuter benefits, such as travel subsidies, public transport passes, or parking discounts, are valued by 29% of employees. As hybrid work continues, employers can consider flexible commuter perks to support both in-office and remote workers.
9. Paid parental leave 
While paid parental leave is valued by 23% of employees overall, our data reveals a considerable generational difference:
- Gen Z (38%) and Early Millennials (36%) place a much higher value on paid parental leave.
- Late Millennials (18%), Gen X (12%), and Baby Boomers (14%) rank significantly lower.
This highlights the need for flexible benefits that cater to different life stages. What works for one generation may not work for another.
The key takeaway: One size doesn’t fit all.
Our research findings reinforce an important lesson - that benefits should be tailored to employee needs rather than taking a one-size-fits-all approach. Offering a mix of financial incentives, wellbeing support, and lifestyle perks can create a more engaged workforce.
Additionally, our Economic Value Study has found a distinct link between engaged employees and stronger business outcomes across key metrics like profitability, growth, retention, and customer satisfaction. The more valuable and skilled a business requires its staff to be, the stronger the link is. This underscores why investing in meaningful employee benefits isn’t just about attraction. It’s also about long-term success.
By listening to employees and evolving benefits accordingly, HR leaders can build a workplace where people feel valued, motivated, and committed for the long haul.
Find more insights in our 2025 Workplace Engagement Index.
What benefits matter most to your employees? Let’s start the conversation.
