Employee benefits are becoming a central part of business strategy for companies in India, with organisations increasingly using them to attract, retain, and engage talent, according to a new study by Pluxee India.

The findings were released during a webinar titled “Benefits as a Growth Lever: The Next Frontier of Workforce Strategy”, based on two reports—Employee Benefits Reimagined - A 360-Degree Study of Corporate Thinking, Insights, Utilisation & Future Outlook and the Annual India Workplace Childcare Benchmarking Study (2025–26)—covering employees and organisations across sectors.

Benefits gain importance in hiring decisions

The study shows a clear shift in employee priorities. As many as 91% of employees consider benefits an important factor while choosing an employer, while 52% are willing to accept a lower salary in exchange for better benefits.

This trend is prompting companies to rethink compensation structures and place greater focus on benefits as a driver of retention, engagement, and productivity.

However, utilisation remains a challenge. The study found that only one in five employees fully use the benefits available, highlighting gaps in design, accessibility, and communication.

“Benefits today are no longer a good-to-have. They are directly linked to business performance,” said Harish Sarma, Marketing & Product Director, Pluxee India. “Organizations that see them as a strategic lever instead of a transactional offering will have a clear edge in attracting and retaining talent.”

Gap between expectations and delivery

The findings also point to a mismatch between employee expectations and what organisations currently offer, especially in areas such as flexibility and everyday work support.

This gap indicates that companies can improve employee experience without necessarily increasing costs, by focusing on better design and delivery of benefits.

Childcare becomes a strategic priority

The childcare-focused study, conducted by ProEves, highlights the growing importance of support for working parents.

With working parents forming a significant part of the workforce, nearly 70% of companies are moving away from onsite childcare towards more flexible, near-home solutions. This shift aligns with hybrid work models and the need for greater accessibility.

At the same time, access to childcare benefits remains uneven, with coverage largely limited to full-time employees, while contract workers continue to be underrepresented.

“Childcare today is no longer just a compliance requirement. It is directly linked to workforce participation and retention,” said Ketika Kapoor, Co-founder & Operations Director, ProEves, a Pluxee company. “Organizations that invest in accessible and flexible childcare solutions will be better positioned to support working parents and build more inclusive workplaces.”

Focus shifts to smarter benefit design

The study suggests that the next phase of employee benefits will be defined not by higher spending, but by smarter allocation.

Companies are expected to focus on improving utilisation, offering flexible and personalised benefits, and enhancing digital access to these services.

In a competitive talent market, the way benefits are designed and delivered is becoming as important as salary, making them a key differentiator for employers.

Disclaimer

This report is based on studies released by Pluxee India and ProEves. The findings reflect survey-based insights and industry perspectives.