For years, offering a competitive salary has been the number one way to recruit and retain talented people. But as the world of work evolves, some employees’ perspectives are shifting.
So are employees still prioritising pay, or are other benefits are now playing an equally important role in shaping job satisfaction and loyalty? If you’re an employer grappling with this balancing act, understanding what drives today’s workforce is not just helpful, it’s essential.
Shifting employee priorities
Historically, pay was considered the defining marker of job quality. A higher salary symbolised success, security and a tangible measure of professional worth. For HR teams, it was the central lever in attracting and retaining skilled talent.
But the world has changed. The pandemic reshaped priorities, with factors like work-life balance moving from being simply a nice-to-have into a must-have. Today, salary - even a competitive one - is not enough alone to secure employee satisfaction or engagement.
According to Reed’s 2025 salary guides research, 54% of employees are satisfied with their pay, yet only 23% feel happy in their role. This demonstrates that, while financial security remains important, employees are increasingly looking for more than just take-home pay.
What employees want beyond pay
Reed’s research uncovered a range of non-pay related benefits, which employees are seeking to feel valued and happy in their work. Nearly one-third (31%) of employees said they’d feel more valued if their employer offered additional perks, outside of salary increases. Below, we uncover the popular preferences employees are after.
Recognition really matters : Recognition for achievements was ranked as the top non-pay benefit that would make employees feel more valued, with 30% of employees highlighting this as being important. Simple acts like acknowledging contributions publicly or celebrating milestones can have a far-reaching impact.
Communication and leadership transparency : As we know, a lack of clear communication from leadership can negatively affect employee trust and morale, and naturally, communication plays a strong role in whether employees choose to stay with an employer.
Employees often feel more engaged and valued when leadership communicates openly about company goals, changes and individual roles. Nearly a quarter (23%) of employees cited improved communication from leadership as a key factor in feeling more valued by their employer.
Flexibility first : The shift to remote and hybrid working has changed the game completely, and unsurprisingly, it’s become a highly desired benefit. The ability to work around personal commitments, care for family, or even just avoid a daily commute, is no longer seen as a privilege, but as an expectation. In fact, almost a quarter (22%) of employees stated they would feel more valued by their employer if they were offered more flexible working hours.
Gratitude goes a long way : Over one-fifth (22%) of employees also reported that simple expressions of appreciation, like a ‘thank you’ from leadership teams, would meaningfully boost their sense of value. Gratitude costs nothing but can significantly strengthen workplace culture.
Progression pairs with purpose: Another top benefit that makes employees feel more valued is clear career progression pathways, with almost one-in-five (19%) employees citing this. Providing professional development or training shows investment in employee growth, again, making employees feel looked after.
Turning benefits into business opportunities
The growing emphasis on non-pay related benefits creates a genuine opportunity for businesses, particularly those unable to offer continual salary hikes due to financial constraints. By cultivating a supportive and communicative culture with thoughtful, non-monetary perks, businesses can level the playing field and stand out in attracting employees.
One truth remains constant, however: each employee’s career preferences are unique. For some, financial security outweighs all else, while others may prioritise flexibility, recognition or career development. This means HR teams must craft tailored compensation packages where possible, blending financial and non-financial rewards, to meet employees’ individual needs.
This personalised approach can give employers an edge in a competitive talent market, even when budget constraints make significant pay increases impossible.
Salary alone doesn’t always buy loyalty anymore. Employees today demand more personalisation, and they want to feel appreciated - not just through their payslip, but through meaningful recognition, work life balance and development opportunities.
