Mumbai, Apr 07: Employee benefits are fast evolving from a cost centre into a strategic lever for growth, as companies increasingly use them to attract, retain, and engage talent in a competitive market, according to new research released by Pluxee India.
Unveiled in a webinar titled “Benefits as a Growth Lever: The Next Frontier of Workforce Strategy,” the findings are based on two studies, Employee Benefits Reimagined – A 360-Degree Study of Corporate Thinking, Insights, Utilisation & Future Outlook and the Annual India Workplace Childcare Benchmarking Study – From Insights to Actions (2025–26), covering employees and organizations across sectors.
The Childcare study was conducted by ProEves, a Pluxee company, a leading digital corporate childcare benefits platform in India that supports working parents through access to preschool and daycare solutions.
The detailed reports are available here: https://www.pluxee.in/employee-benefits-workplace-study
Benefits take centre stage in workforce strategy
Analysis from the Employee Benefits Study shows that workforce priorities have clearly evolved. As many as 91% of employees consider benefits an important factor when choosing an employer, while 52% are willing to accept a lower salary in exchange for better benefits, signalling a growing rebalancing of compensation structures.
This change is making companies take a more strategic approach. Most organisations surveyed responded that benefits play a critical role in driving outcomes like retention, engagement, and productivity. But the execution remains uneven.
One of the sharpest gaps lies in utilisation. Only one in five employees fully use the benefits available to them, suggesting that the challenge is no longer about allocation, but about 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.”
The studies also point to a growing mismatch between employee expectations and employer offerings, particularly in areas such as flexibility and everyday work enablers. This indicates untapped opportunities to improve workforce experience without necessarily increasing costs.
Childcare moves into the strategic spotlight
Childcare is becoming a critical component of workforce strategy, along with other benefits.
With working parents accounting for a significant share of the workforce, companies are rethinking how support is delivered. ~70% of companies are moving away from traditional onsite childcare toward more flexible near-home solutions.
This shift is being driven by the need for scalability, accessibility, and improved alignment with hybrid work paradigms.
At the same time, gaps remain. Coverage continues to be largely limited to full-time employees, with contract workers still underrepresented. This highlights a broader challenge in translating inclusion intent into practice.
“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.”
Industry leaders at the webinar noted that childcare is increasingly linked to workforce participation, especially for professionals in the middle of their careers. It is also becoming a key aspect in retaining employees and promoting diversity goals.
From spending more to spending smarter
The findings of the studies suggest that the next step in the evolution of employee benefits will be defined not necessarily by higher spending, but by better design. As companies aim to spend more on benefits in the next several years, the focus is likely to turn toward improving utilisation, enabling flexibility, and delivering more personalised and digitally accessible experiences.
The takeaway is clear. In a tight talent market, how companies design and deliver benefits may matter as much as how much they spend.
