- Key to staff retention: 71% of companies see benefits as key to retaining staff. More than half (68%) also consider them highly important for recruitment.
- Canteens and flexible working hours remain ever-popular: Traditional benefits continue to be popular. The uptake of canteens/meal allowances (56%) and flexible working hours (52%) exceeds 50% in more than half of companies.
- Gap between supply and demand: Some benefits, such as the JobBike or mental health support, are rarely used by employees, even though they are offered by half of all companies.
- Costs of benefits unclear: Almost a third (29%) of companies do not know their own expenditure on benefits and operate without a clear, data-driven strategy.
Benefits are more important than ever for companies competing for the best talent, yet a large proportion of the investment fails to resonate with staff. The reason: a massive gap between the fringe benefits on offer and what employees actually use. For example, schemes such as the JobBike, company cars or mental health programmes are frequently used by less than ten per cent of the workforce. However, low uptake does not automatically mean a benefit is unnecessary – often it is down to a lack of communication. Companies must actively and repeatedly communicate benefits: in meetings, via digital touchpoints such as the intranet or apps, through HR ambassadors and regular reminders. This is shown by GrECo’s new “Health & Benefits Study”.
“Many companies invest with the best of intentions, but miss the mark when it comes to their employees’ actual needs. This reality check shows that an expensive benefits portfolio is useless if staff do not make use of it,” explains Joachim Schuller, Competence Centre Manager for Health and Benefits at GrECo. “Instead of doling out benefits indiscriminately, a data-driven strategy is needed that is targeted and demonstrably strengthens employee retention.”
Why expensive benefits often fail to make a difference
Whilst 71% of the companies surveyed consider benefits to be important for staff retention, there is a significant gap between supply and demand. For example, at almost half of the companies, the JobBike scheme is used by fewer than 10% of employees. The gym subsidy also falls below the 10% mark at a third of companies. Flexible working hours are offered by 91% of companies. Here, the usage rate exceeds 50% in half of the companies (52%). It is particularly revealing to look at companies with high staff turnover: these tend to invest more in recruitment than in benefits. Instead of reactively seeking new employees, however, companies should take a proactive approach and invest specifically in benefits to strengthen loyalty among existing staff and reduce the costs of recruitment in the long term.
The blind spot: a lack of data leads to a lack of strategy
A key problem is the lack of strategic oversight, as almost a third of companies (29%) have no clear picture of how much they are spending on employee benefits. This lack of visibility leads to costly misjudgements, as a look at future plans shows: 42% of companies intend to introduce new benefits over the next twelve months. The main plans are for the JobBike scheme (15%), a gym subsidy (14%) and supplementary health insurance (10%) – yet a look at current take-up rates shows that these benefits are not among those with high participation. “If an employer wants higher benefit uptake, a cost-sharing scheme can be decisive. Such an incentive can lower the barrier to entry and significantly boost appeal. After all, a benefit only fulfils its purpose when it is actually used by employees,” explains Schuller.
Pension benefits as a competitive advantage
Compared to traditional benefits such as workplace health management or flexible working hours, occupational pensions are still far less common in the Austrian labour market. There is therefore enormous potential in pension schemes such as defined-benefit pensions, group health insurance or occupational disability cover: currently, fewer than a quarter of companies offer such benefits – and for individual pension schemes, the figure is even below ten per cent of companies. Yet there is great potential here, as Schuller knows: “Employers are missing a major opportunity to position themselves strategically in the competition for talent. Especially in times of economic uncertainty, employees are looking for long-term security. Pension provision supported by the employer is a strong signal of appreciation and a clear commitment to the well-being of the workforce beyond the daily working routine.”
For the “Health & Benefits Study 2025”, GrECo conducted a survey of Austrian companies via IPSOS between July and November 2025 to shed light on employers’ perspectives and strategies. A total of 205 company representatives from 17 different industry sectors took part in the survey. The survey highlights where investment in benefits is effective and where action is needed. Companies that regularly evaluate their benefits strategy and manage it on a data-driven basis can allocate their personnel costs more efficiently whilst simultaneously strengthening employee retention in the long term.
