Study Finds Employees Will Sacrifice Pay For Better Benefits—And Most Want More Choice

In an era marked by rapid workplace evolution, a groundbreaking study by insurance giant Aon has unveiled a significant shift in employee priorities. The 2025 Human Capital Employee Sentiment Study reveals that a substantial 42% of workers globally are willing to sacrifice pay for improved benefits, while an even more striking 63% express a desire to exchange existing benefits for greater personalisation. 

These findings underscore a transformative trend in the labour market, where factors such as well-being, flexibility, and choice are increasingly rivalling (and often surpassing) traditional salary expectations.

For modern employers, comprehending these changing dynamics is no longer just beneficial; it's critical. As organisations navigate the complexities of talent attraction and retention in a post-pandemic world, understanding and responding to these evolving employee preferences will be key to maintaining a competitive edge.

The "Hustle Reset": Redefining Work-Life Balance

A key finding of the Aon study is the widespread rejection of the "burnout culture" that has characterised many workplaces in recent years. Employees are increasingly prioritising work-life balance and overall well-being.

Flexible work arrangements were quickly identified as a key priority. A remarkable 76% of respondents ranked job sharing or technology-free hours as critical benefits. This statistic reflects a growing demand for work arrangements that allow for better integration of personal and professional lives.

Well-being Programs also seem to go a long way in terms of employee satisfaction. Mental health services, gym memberships, and other wellness initiatives are no longer viewed as perks but as essential components of a competitive benefits package. Companies offering comprehensive well-being programs are finding them to be powerful tools for employee retention and attraction.

Why Employees Are Prioritising Benefits Over Salary

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The clear trend that emerges from the results of the study is that benefits matter. The survey also gave us valuable insights into specific factors contributing to the overall result. 

Generational Shifts in Values

The study uncovered significant differences across age groups. For instance, 52% of Generation Z employees prioritise benefits over pay, compared to only 27% of Baby Boomers. This generational gap suggests that younger workers, who are entering the workforce in an era of economic uncertainty and rapid technological change, place a higher premium on security and flexibility than their older counterparts.

Different industries also seem to show varying preferences in terms of what benefits matter to them. Tech workers often prioritise stock options and remote work flexibility, while healthcare employees tend to place higher value on comprehensive health coverage and mental health support.

Desire for Personalisation and Autonomy

Modern employees, accustomed to personalised consumer experiences, seek the same level of customisation in their benefits packages.

63% of respondents expressed a willingness to sacrifice existing benefits in favour of more personalised options. This statistic signals a growing dissatisfaction with rigid, one-size-fits-all benefits packages and a strong desire for tailored solutions that better meet individual needs and lifestyles.

Long-Term Financial Security

Benefits that offer long-term financial security are often valued more highly than short-term salary increases.
Robust retirement plans, life insurance, and disability coverage provide a sense of security that can outweigh the immediate gratification of a higher salary. This is particularly true in industries with higher occupational risks, where employees prioritise comprehensive accident coverage and income protection.

Many employee benefits also come with tax advantages, making them more valuable than their salary equivalent. For example, contributions to retirement accounts or health savings accounts are often tax-deductible, providing immediate tax savings and long-term financial benefits.

Global Variations

While 42% of employees globally would accept lower pay for improved benefits, this figure varies significantly across regions. In countries like Brazil and the United Arab Emirates, the percentage soars to 69%, indicating a particularly strong preference for non-monetary compensation. 

Conversely, in the United States, only 26% of workers share this sentiment, suggesting that cultural and economic factors play a crucial role in shaping these preferences.

Holistic Well-being

Employees are increasingly viewing their jobs as part of their overall life experience, seeking roles that contribute positively to their physical, mental, and emotional well-being.

Benefits like mental health support, wellness programs, and work-life balance initiatives contribute to overall job satisfaction and employee engagement. Companies that offer these benefits are often seen as more desirable employers, regardless of salary levels.

The Evolving Landscape of Employee Benefits

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As employee preferences shift, so does the range of benefits forward-thinking organisations offer. Modern benefits packages extend far beyond the traditional offerings of health insurance and retirement plans.

Health and Well-being

• Mental Health Support: With increasing awareness of mental health issues, many companies now offer counselling services, stress management programs, and apps for meditation and mindfulness.
• Comprehensive Healthcare: Beyond basic medical coverage, employees seek (and employers provide) more comprehensive health benefits. These often include dental and vision care, as well as preventive health measures like regular check-ups and vaccinations.
• Fitness and Nutrition: Gym memberships, on-site fitness facilities, nutritional counselling, and healthy meal options in company cafeterias are becoming increasingly common.

Financial Security and Planning

• Retirement Planning: While traditional pension plans are less common, attractive superannuation schemes with employers contributing more than the minimum have become an attractive mainstay of many benefits packages.
• Student Loan Assistance: With the rising student debt burden, some companies offer repayment assistance programs to attract and retain young talent.
• Financial Education: Many organisations now provide financial literacy workshops and personalised financial planning services to help employees manage their money more effectively.

Work-Life Integration

• Flexible Work Options: Remote work, flexible hours, and compressed workweeks have moved from being perks to standard offerings in many industries.
• Unlimited PTO:Some companies are experimenting with unlimited paid time off policies, trusting employees to manage their time responsibly.
• Family-Friendly Policies: Parental leave (for both primary and secondary caregivers), adoption assistance, and childcare support are increasingly important, especially for millennial workers starting families.

Personal and Professional Growth

• Continuous Learning: Tuition reimbursement for job-related courses, in-house training programs, and subscriptions to online learning platforms are common offerings.
• Career Development: Mentorship programs, leadership training, and clear career progression paths are valued by employees looking to grow within their organisations.
• Sabbaticals: Some companies offer extended paid leave for long-term employees, allowing them to pursue personal projects or simply recharge.

Implications for Employers

The shifting landscape of employee preferences presents both challenges and opportunities for companies looking for the best talent. To stay competitive in the talent market, employers will need to adapt their strategies to better appeal to the changing workforce. 

Rethinking Compensation and Communication Strategies

• Conduct Regular Audits: Regularly assess the gap between current benefit offerings and employee preferences. This may involve surveys, focus groups, or analysis of benefit utilisation data.
• Implement Flexible Benefit Platforms: Consider adopting platforms that allow employees to customise their benefits packages annually, choosing from a menu of options that best suit their needs.
• Develop clear, engaging communication strategies to ensure employees comprehend and appreciate the full value of their benefits package.
• Highlight Underutilised Perks: Many valuable benefits, such as Employee Assistance Programs (EAPs) or fertility benefits, are often underutilised due to the lack of awareness. Develop targeted campaigns to promote these offerings.

Addressing the AI Readiness Gap

• Upskilling Initiatives: Develop programs to help employees understand and adapt to AI technologies in the workplace.
• Collaborate with institutions offering advanced managerial training to equip teams with the skills needed to manage AI-driven workplaces. Modern HR training, like an online Masters in Human Resources course, integrates data analytics and change management training, preparing HR leaders for the challenges of a changing work environment.
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  The findings from Aon's study and the broader trends in employee preferences underscore a fundamental shift in the world of work. Employees now view benefits not as mere add-ons but as integral components of their overall compensation and job satisfaction. For organisations, this means moving away from static, one-size-fits-all benefits packages towards more adaptive, personalised solutions.

The future of work is not just about adapting to new technologies or economic realities; it's about creating environments where employees feel valued, supported, and empowered to grow. By aligning benefits strategies with these evolving preferences, organisations can create a win-win scenario: happier, more engaged employees and a more resilient, competitive business.