[UK] 2 in 5 employers have scaled back workplace benefits

In the UK, new research has revealed that organisations are scaling back workplace benefits to manage costs. There are concerns that such cuts could impact morale, productivity, and retention, HR Grapevine reports.

Robert Walters’ annual Employee Benefits Guide show that 43 per cent of UK business leaders have scaled back company benefits in the past 12 months. 

And a quarter (26 per cent) reportedly plan to make further cuts this year, with an additional 33 per cent yet to rule them out.

According to research from Indeed Hiring Lab, UK job postings offering at least one benefit dropped from 66.7 per cent in 2024 to 64.6 per cent in 2025. In April, Deloitte and Zoom announced plans to reduce employee benefits, including annual PTO, pension contributions, and IVF funding. 

Daniel Harris - Managing Director for Robert Walters UK&I - said, “The shift towards leaner benefits packages has been influenced by years of raised business costs, compounded by domestic tax hikes, wider global volatility, and inflation.

“While this cost-saving approach is more sustainable than direct salary hits or headcount reductions, cutting the benefits that employees value most – or replacing them with lower-cost substitutes – may mean that what is saved on budget, could be lost on engagement, productivity and even loyalty.”

Source: HR Grapevine

(Link and quote via original reporting)

In the UK, new research has revealed that organisations are scaling back workplace benefits to manage costs. There are concerns that such cuts could impact morale, productivity, and retention, HR Grapevine reports.

Robert Walters’ annual Employee Benefits Guide show that 43 per cent of UK business leaders have scaled back company benefits in the past 12 months. 

And a quarter (26 per cent) reportedly plan to make further cuts this year, with an additional 33 per cent yet to rule them out.

According to research from Indeed Hiring Lab, UK job postings offering at least one benefit dropped from 66.7 per cent in 2024 to 64.6 per cent in 2025. In April, Deloitte and Zoom announced plans to reduce employee benefits, including annual PTO, pension contributions, and IVF funding. 

Daniel Harris - Managing Director for Robert Walters UK&I - said, “The shift towards leaner benefits packages has been influenced by years of raised business costs, compounded by domestic tax hikes, wider global volatility, and inflation.

“While this cost-saving approach is more sustainable than direct salary hits or headcount reductions, cutting the benefits that employees value most – or replacing them with lower-cost substitutes – may mean that what is saved on budget, could be lost on engagement, productivity and even loyalty.”

Source: HR Grapevine

(Link and quote via original reporting)