Pressure, guilt, and emotional drivers
Employee benefits aren’t only shaped by budgets – they’re deeply influenced by human emotions and personal experiences. Behind every decision sits the desire to give employees greater support, but this also brings with it significant responsibility, and a pressure to “get it right”.
The burden of leadership
Benefits play a major role in any organisation’s employee value proposition, helping to promote a positive workplace culture and general wellbeing. The impacts of benefit-related decisions are therefore felt widely, both by employees – in the shape of morale or engagement – and by organisations themselves, as they strive to attract and retain talent. By that same token, getting these decisions wrong can bring significant consequences.
Our survey reveals that SME leaders often carry a heavy emotional burden when it comes to benefits: hope, uncertainty, and a feeling that “more could be done” are common themes. Crucially, while 47% of respondents describe themselves as confident when implementing new benefits, a much larger 71% admit to feeling guilt about whether those benefits truly support their teams. This mismatch suggests that confidence may not always reflect conviction, masking doubt, second-guessing, and a pressure to appear assured.
This is understandable. Relative to larger organisations, SME leaders have significant exposure to their employees. This is partly a physical trait – smaller offices bring greater visibility – but it is also a cultural one, a consequence of the tight-knit working community that is a common hallmark of SMEs. While this is a positive, it can make it harder for leaders to separate ‘human factors’ from business decision making. A feeling that there is “nowhere to hide” should things go wrong can add to the weight of responsibility.
Mixed feelings
Leaders’ dominant emotion when implementing new benefits

SMEs want to do right by their employees, but this also brings a pressure to get things right. Without clear guidance, leaders will continue to carry the burden alone – risking decisions that are reactive, inconsistent, or clouded by guilt.
Stewart Waddy, Head of SME Consulting & Production
Over-reliance on experience
The result is that choices are rarely made in isolation. According to our survey, 75% of leaders have taken a benefits-related decision based primarily on their own personal experience or needs, or those of a senior leader. What’s more, 66% of leaders have felt emotionally conflicted when making a benefits-related decision. This reflects the genuine sense of personal responsibility that many leaders feel when it comes to supporting their teams – and can often be a superpower for SMEs.
But the heart isn’t always a reliable guide. When benefits strategies lean too heavily on personal experience or gut instinct, they risk overlooking wider workforce needs, or opportunities for long-term planning. After all, what feels important to one leader may not align with what’s most valuable for employees more widely. Leaders must balance empathetic feeling against questions of practicality and utility.
The weight of responsibility
Frequency of ‘pressure’ and ‘guilt’ among decision makers
All the time
Sometimes
Rarely
Never
I haven’t really thought about it before
Other drivers also risk creating a weaker foundation. Designing benefits around legal or compliance requirements may keep SMEs on the right side of regulation, but it does little to inspire trust or engagement if employees feel the package is more about box-ticking than care. Similarly, responding to recruitment pressure can result in short-term fixes that look attractive on job adverts, but fail to provide lasting relevance for existing staff. And when benefits are simply inherited from previous leadership, there’s a danger of perpetuating outdated offerings that no longer reflect today’s workforce. In each case, strategies risk being reactive or stagnant, rather than purposeful and future-facing.
Leading with the heart
Key motivators for offering employee benefits (top 3)
Employee feedback
I personally value these benefits
Legal/compliance requirement
A specific employee health or personal issue
Recruitment pressure
Inherited from previous leadership
N/A