Which countries are beating the UK for employee benefits?

The most successful and strategic business owners know that employee benefits play a huge role in attracting and retaining talent. 

Unfortunately, for UK workers,  employee benefits are lagging behind, resulting in disengaged employees who are “quietly quitting”, or leaving the workforce altogether.

So, how does the UK compare to other countries when it comes to employee benefits? Let’s take a look at which countries are doing it best and what the UK could learn from them.

Best for paid time off: Sweden

Sweden regularly finds itself in the top five when it comes to the happiest countries in the world – and a proportion  of that is likely down to how Swedish employers treat their workers.

Getting one of the best paid leave policies of anywhere in the world, employees are legally entitled to 25 days’ paid leave per year –  but what makes Sweden stand out from the rest is that employees can carry over their unused leave for up to five years.They must also take at least 20 days of their allowance per year, helping to boost their work-life balance too!

Best for family-friendly benefits: Norway

And when it comes to family-friendly employee benefits, Norway is leading the way.

Whilst its standard maternity and paternity leave packages are already generous, Norway has adopted a “use it or lose it” approach, offering each parent 16 weeks’ non-transferable leave. 

This allows both parents precious  time with their new child compared with many countries, including the UK, where just two weeks’  paternity leave is standard.

Check out our guides to maternity leave pay  and shared parental leave to see how the UK fares when it comes to supporting parents in the workforce.

Best for flexible working: Finland

Whilst flexible working may have become a more universal employee benefit following the pandemic, Finland has been a global leader in flexible working policies for decades.

Back in 1996, the country passed The Working Hours Act which gives employees autonomy to choose the hours they work This was updated in 2020, providing employees with the say over when and where they work for at least half their working hours.

By 2011, a huge 92% of the country’s businesses offered flexible working for employees, way ahead of the curve and trend during and following the COVID-19 pandemic. 

Best for savings: New Zealand

When it comes to helping employees save for the future, New Zealand has one of the best employee perks around.

Workers can sign up to KiwiSaver, a voluntary savings scheme for employees aged between 18 – 65. Employers contribute 3% whilst employees can put in anywhere between 3% – 10% each month.

What makes this scheme so great, however, is that whilst its main purpose is to be used as a pension pot, employees can use the savings to purchase their first home too, meaning employers are helping their staff to get onto the property ladder!

Best for work-life balance: France

Everyone is striving to achieve the elusive work-life balance, but it looks like the French may have mastered it.

Not only do French employees receive five weeks’  annual leave per year, but they have the legal right to not pick up their work phone or laptop during evenings, weekends and annual leave.

The French take  work-life balance so seriously that employers can face fines and even jail time if they are found to be making employees work on a Sunday. 

Best for unemployment benefits: Denmark

We know what you’re thinking, unemployment benefits aren’t employee benefits. Well in Denmark, they kind of are.

That’s because in Denmark, unemployment insurance schemes mandate that employers must pay employees up to 90% of their salary after leaving the company until they can find an alternative job, but there are several criteria to meet, including being part of an unemployment scheme for at least a year, as well as others. 

Workers’ rights are also incredibly well protected in Denmark, and almost 70% of Danes belong to a trade union

Best for healthcare: Germany

Many countries offer some form of employee healthcare, but it’s in Germany where one of the best policies exists.

It’s a legal requirement for all German employees to carry health insurance and employers must contribute half of the premium, or 7.3%.

Employees in Germany are also entitled to six weeks’  sick leave on full pay (unlike in the UK where you only receive statutory sick pay as standard). 

Final thoughts

Employee benefits are an important part of running a business. Whether you’re a small business owner, an HR manager, or an employee looking for the best perks, being aware of what can and should be offered is important.

While the UK is certainly not at the bottom of the list when it comes to employee benefits, there are cemented maternity, sick and flexible leave policies in place at many organisations, it’s certainly not at the forefront either.

If you’re serious about attracting and retaining the best talent and keeping your employees engaged, then taking inspiration from the countries in this list is a good place to start.

Lucy Nixon - content writer

With 10 years experience in the digital marketing industry, Lucy is a content writer specialising in ecommerce, website building and all things small business. Her passion is breaking down tricky topics into digestible and engaging content for readers. She's also committed to uncovering the best platforms, tools, and strategies, researching meticulously to providing hand-on tips and advice.