In the membership sector, your people are your biggest asset. They’re the ones building relationships, delivering services, and ensuring members feel supported.
But it’s clear that mounting economic pressures are making it harder to stay competitive. Rising costs and tight budgets are squeezing resources, while employees’ expectations around pay, benefits, and workplace culture are changing.
For organisations where significant salary increases may be out of reach, investing in thoughtful rewards and benefits can be a practical and meaningful way to show employees they’re valued. Done right, these offerings can boost morale, enhance loyalty, and create a workplace culture where people thrive - even when times are tough. Read on to find out more:
Rewards, benefits, and salary – what's the difference?
When we talk about what employees get out of their jobs, it’s easy to blur the lines between salary, rewards, and benefits. But they’re not all the same.
Salary is the predictable part - it’s what lands in their bank account every month. Rewards are about recognising effort and celebrating achievements, whether that’s through a bonus, a thank-you gesture, or public acknowledgment for a job well done. Benefits, however, focus on long-term wellbeing and support, offering things like pensions, flexible working arrangements, or healthcare that help employees feel cared for both in and out of work.
Membership organisations are all about relationships, both with members and the teams that serve them.
Your team are the face of your organisation, building trust and connection with members every day. When employees feel valued and supported, that positivity doesn’t stop at the office door - it has a direct impact on how they interact with and support your members.
The ripple effect of a happy, motivated team can’t be overstated. It drives better service, stronger relationships, and ultimately, greater member satisfaction and retention. On the flip side, if your employees feel undervalued, it can lead to disengagement, lower morale, and even higher staff turnover. These are issues that membership organisations can ill afford in 2025.
With 77% of SMEs planning to overhaul their benefits offerings in response to current pressures, now is the time for membership organisations to act.
As we head into 2025, the economic backdrop isn’t getting any easier. Rising costs and tighter budgets are putting a strain on many businesses, and membership organisations are no exception. Adding to the squeeze are increasing National Insurance contributions and the pressure to keep talented staff in a competitive job market.
The reality is that generous pay rises might not be an option for many. But, ignoring employee needs isn’t an answer either - it risks low morale, higher turnover, and all the costs that come with replacing experienced staff (which can be in the tens of thousands!).
Finding that balance is going to be a top priority in the months ahead.
The key to a winning strategy lies in understanding what employees genuinely value. According to Drewberry’s 2024 Employee Benefits and Workplace Satisfaction Survey, the top benefits employees would like are:
1. Reduced working week (eg, four day work week)These are closely followed by benefits like education and training opportunities, better parental leave, and gym discounts.
What’s interesting is how these priorities vary by generation. For younger employees, like Millennials and Gen Z, the emphasis often shifts to health and wellness. Research from the Oxford Longevity Project reveals that one in three workers in these age groups would even sacrifice part of their salary for better workplace health benefits.
Finding out what employees want starts with asking the right questions. Regular feedback through surveys, one-to-one discussions, or anonymous forms can uncover what matters most to your team. It’s also crucial to avoid a “one size fits all” approach. GetLiving found that 73% of employees want a more tailored benefits package, yet according to a survey by People Management, 62% of HR Directors stated the “benefits they currently offer “don’t address what people really need” or were “only useful to some of the workforce””.
Taking the time to personalise benefits not only shows you’re listening but helps build a happier, more engaged team.
When it comes to rewards and benefits, membership organisations face a bit of a juggling act. The goal is to keep employees happy while staying mindful of the budget. It’s important to remember that striking the right balance doesn’t mean cutting corners, it just means being thoughtful about what you offer. Here’s how you can do it:
The easiest way to avoid wasting resources is by giving people what they actually care about. Regular surveys, open conversations, or even informal chats can help you discover what matters most to your team. In an article for People Management, Nick Gold, MD of Speakers Corner, shared how the simple act of asking employees about their preferred benefits boosted engagement and morale significantly. It’s a straightforward step with meaningful results.
Flexible working, for example, is consistently rated as one of the most desirable benefits and often costs relatively little to implement. Similarly, wellbeing initiatives like mental health support or access to mindfulness apps can make a significant difference without breaking the bank.
Even simple gestures, such as team recognition or a handwritten thank-you note can have a big impact. There’s a clear link between recognition and higher engagement and productivity. These kinds of thoughtful, low-cost actions show appreciation and boost morale, making them well worth the effort.
Instead of offering a blanket package, give employees choices. Whether it’s extra leave, childcare support, or gym memberships, tailored benefits can have a bigger impact while keeping costs manageable.
Flexibility in benefits doesn’t just improve engagement; some say it can also contribute to better workplace inclusivity. Research shows that personalised packages help address diverse employee needs, including those of underrepresented groups, and can even play a role in helping close the gender pay gap.
As with everything, the world of employee benefits is changing fast. Here are a few key trends that member-focussed organisations should be keeping an eye on: