A new workplace trend is emerging across the UK – it’s being referred to as “benefitsmaxxing”.
According to new research commissioned by Employment Hero, more than half (53%) of UK workers say better benefits are a factor in changing jobs, highlighting a growing shift in how employees evaluate career moves at a time when wage growth is slowing.
While salary remains the leading motivator for switching roles (63%), benefits now rank just behind flexible hours and ahead of other traditional drivers. The data suggests that as inflation continues to squeeze household budgets, employees are thinking more strategically about the total value of a compensation package -it’s no longer just about the headline salary.
Wage Growth Slows As Cost Pressures Mount
The findings come during a challenging period for UK employers. Analysis of 117,000 anonymised employee records on the Employment Hero platform shows three-month average wage growth reached 3.6% in January 2026 – only marginally above inflation.
At the same time, businesses are facing rising employment costs, including increases in National Insurance Contributions, putting pressure on payroll budgets. For many SMEs in particular, consistently raising salaries is simply not sustainable.
Retention is also becoming more expensive. Employment Hero’s research indicates that 45% of UK businesses are now spending more on recruitment than in previous years, making staff turnover an increasingly costly problem.
Kevin Fitzgerald, UK MD of Employment Hero, said the data reflects a broader shift in workforce expectations.
“We’re seeing a fundamental shift in what employees value. Pay obviously matters, but today’s workforce cares just as deeply about how they feel at work. Benefits have become a key part of that equation and businesses that can’t offer competitive packages are finding themselves at a serious disadvantage in attracting and retaining talent,” he said.
For smaller businesses, the challenge is particularly acute. Traditionally unable to match large corporates on benefits packages, many SMEs now risk losing talent not just on pay – but on perks.
Employment Hero Expands Into Embedded Health Insurance
In response, Employment Hero has announced the expansion of its platform to include integrated health insurance, powered by benefits infrastructure provider Kota.
The embedded solution allows small businesses using Employment Hero’s platform to access health cover directly within the system, with enrolment and management built in. The aim is to remove administrative complexity while helping SMEs compete on benefits rather than salary alone.
Luke Mackey, Co-Founder and CEO of Kota, said: “In a world where over half of workers would change roles for better benefits, companies are under pressure to offer something competitive. Benefits are no longer just a nice-to-have, they play a key role in attracting talent.”
By embedding health insurance directly into the platform, the companies say they are reducing friction for both employers and employees, making it easier for smaller firms to offer packages that previously may have felt out of reach.
Employment Hero, which serves more than 350,000 businesses globally and manages over 2.5 million employees, positions the move as part of its broader mission to simplify employment processes and level the playing field for SMEs.
As wage growth stabilises and cost pressures persist, the rise of ‘benefitsmaxxing’ signals a structural shift in the labour market. For UK employers, competing on salary alone may no longer be enough, and benefits could increasingly become the deciding factor in winning and retaining talent.
