FMCG: Why your benefits strategy needs to move as fast as your products

When Northern Irish meat supplier Finnebrogue grew by 900 employees between 2019 and 2024, they faced a classic FMCG problem: how to retain great people long-term.

Their solution was beautifully simple: they redesigned their entire benefits offering around what their people actually needed. Enhanced family leave that covered everything from maternity to child loss and IVF support. Career partnerships with Queen's University Belfast. Development programmes for neurodiverse colleagues and returners.

The results speak volumes: 22% drop in turnover, 43% reduction in absenteeism, and a 31% increase in job applications. Oh, and a 2024 Grocer magazine Gold award for good measure.

This isn't luck, it’s proof that benefits aligned with your people's real lives drive measurable impact.

The pressure cooker you're working in

We know the environment you're navigating.Your people increasingly expect personalised benefits - 61% of Gen Z workers say they'd leave their current job for better mental health support, according to the Society for Human Resource Management (SHRM). Meanwhile, you're dealing with supply-side inflation squeezing margins and rising wage demands that make every budget conversation tougher.

Look at India's FMCG market, which represents a quarter of their economy: Hindustan Unilever (HUL), India’s largest fast-moving consumer goods business announced Q4 2025 performance showing revenue down 0.9%, net profit down 17.4% and margins expected to be in the 22-23% range (compared to 25% two years ago).

In the UK, legislative changes are adding another layer of complexity. Employer National Insurance increases will cost FMCG firms an estimated £5bn annually. Extended Producer Responsibility legislation (which aims to shift the costs of recycling and recovery of packaging back on producers) is expected to add another £3bn burden. That's £8bn that could have strengthened your employee value proposition – but is now tied up in compliance costs.

The talent gap is real too. The Food and Drink Federation shows FMCG manufacturers have 7.0 unfilled positions per 100 jobs – nearly double the UK average of 3.8. You need people, but you've got fewer resources to attract and keep them.

The disconnect that's costing you talent

Here’s the uncomfortable truth: Reed's 2024 Food & FMCG Salary Guide reveals that the majority of employees working in the sector are genuinely dissatisfied with their benefits packages. Over half (55%) are actively job hunting or considering it, because their current package isn't meeting their needs. This is bad news for a sector that already has high attrition rates and is often recruiting just to stand still rather than to grow.

Adding to these challenges is the fact that with their typically high factory-floor workforces, the precise benefits FMCG workers are craving most, such as more flexibility around their hours/location, are not always possible to offer, compounding problems of disengagement and creating the impression of a two-tier benefits system one for office-based teams, another for frontline workers.

There's a massive gap between what you're offering and what your people want.

What FMCG companies typically offer:

• Enhanced pensions (20%)
  
  
• Annual salary increments (18%)
  

What workers actually want:

• Four-day working weeks (36%)
  
  
• Flexi-time (36%)

​​It's a classic expectation versus provision problem, and it's costing you talent. Glassdoor found 80% of employees would choose extra benefits over a pay rise – but only if those benefits genuinely improve their lives.

Given that employers typically spend 20-30% of payroll on benefits, YouGov research suggests UK companies could be wasting up to £15bn annually on benefits that don't resonate with their people.

The strategic shift that's working

The FMCG leaders getting this right aren't necessarily spending more; they're being smarter about where they focus their investment. They're meeting the growing demand for personalised benefits while addressing the unique challenges of workforces that can't always work from home.

Nestlé tackled cost-of-living anxiety head-on with staff lending programmes. They've built partnerships to give employees better access to nutrition advice, creating a holistic approach to wellbeing. These initiatives aren't capital-intensive, but they make people feel genuinely supported.

Procter & Gamble (P&G) took a different approach in India, establishing a team to train mental health first responders. Again, it's not about big spending – it's about meaningful impact on how people experience support at work.

At P&G specifically, these extras have more impact because the business committed to nailing the fundamentals first. Regular salary benchmarking, solid life and disability insurance, proper retirement planning. When your foundation is strong, the additional touches feel genuinely valuable rather than tokenistic.

Making flexibility work on the frontline

HUL is tackling one of FMCG's trickiest issues: how to offer flexibility when much of your workforce needs to be on-site. Their 'Flexi-curity' approach gives all workers – including contractors and gig workers – access to flexible work options where possible. Their 'Open2U' programme specifically supports gig workers with project opportunities and medical benefits they wouldn't normally access.

It's a smart recognition that flexibility doesn't have to mean remote work. It can mean flexible career paths, flexible development opportunities, and flexible support systems.

New entrants are having a positive impact

The challenger FMCG brands are bringing fresh thinking to benefits that's pushing everyone to up their game. They're building employee value propositions that attract people who share their values – and their benefits reflect this.

Huel has increased holiday entitlement to 30 days for all staff. They've introduced 'Flexible Fridays' where people finish at midday. They offer adoption support, pregnancy loss support, unlimited therapy sessions, and two weeks working from anywhere annually. Plus an on-site nursery.

The results? They're now ranked #30 in the UK's 'Best Companies to Work For'. Headcount grew 57% in the last year. In their recent engagement survey, 99% of employees said they're proud to work there.

Traditional players are responding. P&G now offers counselling for employees and their families, mindfulness training, employee assistance programmes, gym support, and regular health check-ups – all designed to be locally adaptable while maintaining global consistency.

Technology that makes benefits work for everyone

If your frontline teams can't easily access their benefits, you're missing opportunities to boost engagement and retention.

Mobile-first tech like Ben’s means you can give non-desk employees an easy way to enrol, view their benefits, add dependents, and check balances on the move. AI-powered personalisation ensures people discover and use the benefits that genuinely matter to them, while timely messaging, like welcome notes, transaction alerts, or expiry reminders, helps benefits stay relevant day-to-day.

And if you have employees with no corporate email address? One FMCG employer tackled this by sharing QR codes on-site, sending them to Ben’s ‘offline’ employee sign-up process, which allows workers to sign into the platform with their personal email instead. It meant every team member, regardless of their role or location, could access and manage their benefits just as easily, while still giving full visibility to the HR and benefits teams.

When people can actually see, choose, and use their benefits without friction, engagement transforms.

Explore Ben’s mobile app

Making it measurable

Great benefits strategies in FMCG prove their worth. Gourmet sausage producer Heck offers an on-site gym, lets people bring dogs to work, and provides volunteering opportunities like working in local soup kitchens. Their retention rate in a sector known for high turnover? 91.4%.

When you get benefits right, the impact ripples through your business. Better retention means lower recruitment costs. Higher engagement means increased productivity. A stronger employer brand means more applications for every role.

What this means for your strategy

The FMCG outlook remains challenging – low-digit growth, continued pay pressures, and complex supply chains. But a well-designed benefits strategy gives you a way to compete for talent without relying  purely on salary.

Your people's expectations will only increase. They want to know their employer genuinely cares about their physical and mental wellbeing. They want benefits that fit their actual lives, not just their work roles.

The winners will be the reward leaders who can move quickly, think strategically, and put their people's real needs at the centre of their benefits strategy. It’s about building workplaces where great people choose to stay.

The FMCG winners will blend global consistency with local flexibility, making benefits relevant  and easy to access for every employee, everywhere.