For years, work-life balance has dominated conversations around employee attraction and retention. New research from Gartner suggests employee priorities are shifting.
According to a 2026 Gartner survey of 10,055 employees, workers are placing greater value on financial stability, healthcare protection and long-term wealth creation, while placing less emphasis on work-life balance, paid time off and individual pay differentiation.
The findings signal a potential reset for HR leaders as economic uncertainty, rising living costs and concerns about future financial security reshape what employees expect from employers.
Financial security moves to the centre of employee expectations
Gartner found that the 15 most valued total rewards offerings are now largely concentrated around benefits that help employees manage financial risk and protect against unexpected future expenses.
Augustus Vickery, Director Analyst in the Gartner HR practice, said organisations need to reassess their rewards strategies as workforce expectations evolve.
"As workforce needs shift, and become more fragmented, medical benefits, long-term incentives, and flexible financial benefits have become more important," he said.
The findings indicate employees are increasingly focused on building financial resilience rather than maximising short-term rewards.
Key priorities identified in the survey include:
- Future base pay growth
- Long-term incentive (LTI) target amounts
- LTI vesting periods
- Medical benefits that reduce personal financial risk
- Flexible financial benefits
In contrast, employees placed less importance on:
- Work-life balance initiatives
- Paid time off
- Merit pay differentiation
- Traditional short-term incentives
Wealth creation is becoming a key retention lever
The research suggests employees are increasingly evaluating employers based on their ability to support long-term financial outcomes.
Rather than prioritising annual bonus structures or differentiated merit increases, workers are showing stronger interest in mechanisms that help build future wealth.
Gartner recommends several actions for employers seeking to align rewards strategies with changing expectations:
- Review incentive structures to better support both business and employee needs
- Expand access to long-term incentive programmes beyond senior leadership
- Explore cash incentive units for broader workforce groups
The shift reflects growing employee interest in predictable financial progression and longer-term economic security.
Wellbeing spending is under scrutiny
The report also raises questions about the effectiveness of traditional wellbeing investments.
According to a separate Gartner survey of 11,838 employees conducted in the first quarter of 2026, fewer than 35% of employees reported high levels of overall wellbeing.
Despite significant employer spending on wellbeing programmes in recent years, Gartner found limited evidence of meaningful improvement.
Joe Coyle, Vice President Analyst in the Gartner HR practice, said many wellbeing benefits are not delivering the value employees expect.
"Employee well-being has not meaningfully improved in the past three years, despite significant organisational investment," he said.
The research found employees place greater value on specific benefits that offer tangible financial or health outcomes, including:
- Lifestyle Spending Accounts (LSAs)
- Access to GLP-1 treatments
- Fitness subsidies
Gartner suggested organisations may be able to reduce underutilised wellbeing offerings and redirect investment towards more flexible, employee-controlled benefits.
Healthcare protection gains importance
Medical benefits emerged as one of the strongest drivers of employee value perception.
The research found employees are particularly concerned about:
- Unexpected healthcare expenses
- Ongoing medical costs
- Financial risks associated with accessing care
As a result, benefits that reduce out-of-pocket costs and provide greater financial protection are becoming increasingly important components of employer value propositions.
Gartner advised organisations to prioritise healthcare-related investments and communicate them more clearly to employees. The firm also recommended positioning GLP-1 access and fitness subsidies as preventative health measures that can improve workforce health outcomes while potentially reducing long-term healthcare costs.
A changing rewards landscape for HR leaders
The findings highlight a broader shift in workforce expectations.
While flexibility and work-life balance remain important, Gartner's research suggests employees are increasingly focused on financial resilience amid ongoing economic uncertainty. For HR leaders, the challenge is no longer simply offering more benefits, but ensuring rewards programmes align with what employees value most.
As organisations compete for critical talent, rewards strategies built around financial security, healthcare protection and long-term wealth creation may play a larger role in attracting and retaining employees than traditional workplace perks.