How Workplace Benefits Drive Employee Happiness Globally

Mar 20, 2025 | 3 min read

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In 2025, evolving workforce expectations, economic shifts, and workplace changes make employee happiness more important than ever. Discussions around work-life balance, job security, and financial well-being are pushing companies to rethink their benefits to stay competitive.

The International Day of Happiness on March 20th highlights the role of well-being in business success. More than just a perk, workplace happiness is a strategic asset—companies that fail to meet employee expectations risk disengagement and high turnover.

Employees now seek more than basic perks; they want meaningful support that enhances their work and personal lives. Studies show that happy employees are up to 20% more productive and less likely to leave their jobs, reducing turnover and boosting team stability.

True workplace happiness isn’t just about financial rewards—it comes from feeling valued, supported, and empowered. Companies that invest in benefits that align with employee needs create a motivated, engaged workforce, driving long-term success.


Employee happiness is shaped by a combination of workplace culture, support systems, and personal fulfillment. The most valued job benefits go beyond traditional perks; they address employees' core needs and enhance their overall well-being.

The importance of employee benefits cannot be overstated, as they play a crucial role in ensuring a healthy work environment and long-term engagement. Key factors include:

 

  • Work-life balance: Flexible schedules, hybrid working models, remote work options, and paid time off help employees maintain a healthy balance between work and personal life.
  • Financial security: Competitive salaries, enhanced pension contributions, home office allowances, and performance-based bonuses provide stability and peace of mind.
  • Wellness programs: Mental health support, gym memberships, and stress management initiatives contribute to a healthier, more engaged workforce. Leading companies now offer free therapy sessions, mindfulness programs, and workload management support to prevent burnout and foster a positive work environment.
  • Career development opportunities: Training programs, mentorships, and tuition reimbursement encourage professional growth, long-term commitment, and skill enhancement.
  • Parental leave and family support: Paid leave policies for both parents help employees manage work and family responsibilities effectively.
  • Diversity, equity, and inclusion (DEI): A strong DEI culture fosters a sense of belonging and strengthens overall workplace morale.
  • Social engagement and perks: Company-sponsored social events, gifts and private healthcare are also key to creating an engaging and supportive environment for employees.

To truly measure the return on investment (ROI) of employee happiness and workplace benefits, companies must go beyond simply offering perks. It’s essential to track the effectiveness of benefits programs through quantifiable outcomes. Metrics like employee engagement scores, turnover rates, absenteeism, and employee happiness surveys offer strong insights.

Research by McKinsey & Company indicates that employees who report a positive experience are 16 times more engaged and eight times more likely to remain with their employer. Businesses that prioritise employee well-being can reduce turnover rates, leading to significant cost savings in recruitment and training.

Businesses can gain valuable insights by regularly seeking employee feedback, a practice that proves essential in optimising benefits programs. According to Global Workplace Analytics, 80% of employees would be more committed to their company if offered flexible work alternatives, underscoring the direct impact of flexibility on retention rates.

Businesses expanding internationally find that global employee benefits play an increasingly important role in attracting and retaining talent across different regions. Companies must design benefits packages that are not only appealing but also adaptable to the diverse geographical and cultural needs of their workforce.

By conducting employee happiness surveys, organising focus groups, and analysing performance data, companies can fine-tune their benefits strategy to better align with the needs and preferences of their workforce.

This ongoing feedback loop ensures that benefits remain relevant and effective, leading to a more engaged, productive, and loyal workforce, which enables companies to maximise their return on investment by aligning employee satisfaction with business success.

Businesses that prioritise employee well-being consistently outperform competitors in retention, innovation, and overall workplace satisfaction. Companies that invest in meaningful benefits, flexible work arrangements, and strong workplace cultures see higher engagement, productivity, and long-term growth.

Below are three companies with high employee satisfaction that have made employee happiness a key part of their business strategy and thrived because of it.

Google is known for its employee-centric culture, offering benefits like generous parental leave, on-site wellness programs, and continuous learning opportunities. In 2022, Google increased parental leave to 18 weeks for all parents and 24 weeks for birth parents, with caregiver leave expanded to eight weeks. The company also raised its minimum vacation allowance to 20 days annually.

With on-site fitness centers, healthy dining options, and educational reimbursements, Google supports a balanced lifestyle and professional growth. These initiatives have contributed to attracting and retaining top talent, fostering a supportive, innovative work environment.

Salesforce has long prioritised employee well-being through a range of initiatives, including diversity, equity, and inclusion (DEI) programs, wellness reimbursements for activities such as gym memberships, massages, and meditation.

The company also offers 56 hours (7 days) of paid Volunteer Time Off (VTO) annually, empowering employees to contribute to causes they are passionate about.

Outdoor retailer Patagonia has long prioritised work-life balance and environmental sustainability. The company offers flexible work schedules, enabling employees to enjoy a three-day weekend every other week. It also provides on-site childcare facilities at its headquarters in Ventura, California, and its distribution center in Reno, Nevada, contributing to a 91% return rate after maternity leave.

Patagonia supports environmental activism by offering up to 18 hours of paid time for activism and paid environmental internships, reflecting its commitment to sustainability. The company’s culture of trust and mission-driven work creates high employee satisfaction and strong retention rates.

Allianz, a global leader in insurance and financial services, is renowned for its people-centric workplace strategy that emphasizes employee wellbeing, engagement, trust, and collaboration, understanding that the foundation of a successful business lies in happy and motivated employees.

The company has implemented numerous initiatives to foster a supportive work environment, including comprehensive health and wellness programs, flexible working arrangements, and robust employee assistance programs.

Allianz promotes diversity and inclusion by supporting gender equality, cultural diversity, and equal opportunities. It also emphasises learning and development with training programs, workshops, and mentorship schemes.

In 2024, these efforts have earned Allianz the #17 spot in the 25 World’s Best Workplaces annual ranking, conducted by Great Place to Work® and based on anonymous employee feedback.

 

 

The future of work belongs to companies that move beyond traditional benefits packages and focus on what truly drives employee happiness.

It is not about offering more perks; it is about providing the right ones. By actively listening to employees and adapting to their needs, businesses can create workplaces where people feel valued, supported, and motivated to stay and grow long term.

In a global work environment, offering international employee benefits ensures that employees feel supported regardless of their location. Whether an employee is working from home in one country or in the office across the world, consistent access to benefits, such as health insurance, wellness programs, and retirement savings, can significantly improve job satisfaction and loyalty.

Explore the Happiness Hub by Allianz Care, which offers practical steps to improve happiness and well-being, especially for expats. Discover valuable resources to enhance both professional and personal life. For more, visit Allianz Partners’ Business Hub and discover Allianz Partners’ International Health Insurance for Employers.