Corporate Welfare and  its  connection to  wellbeing

Corporate welfare has become a strategic tool for companies committed to investing in people's wellbeing. 

The reason is simple: the salary is no longer enough to make a company attractive to potential candidates.

According to Edenred Welfare Observatory, around 87% of people consider the presence of welfare plans a very relevant factor in staff retention.

This figure shows that nowadays companies need to commit to ensuring organizational wellbeing if they want to succeed, attract, and retain the best talent

Let’s explore in this article how corporate welfare works and what connection it has with wellbeing.

1. What is corporate welfare

Corporate welfare represents the range of initiatives, benefits, services, and monetary contributions that a company voluntarily provides to its people.

It’s a system designed to improve wellbeing in the workplace and the quality of life both professionally and personally: two aspects that younger generations are increasingly paying attention to.

Companies can provide concrete support through welfare in several key areas:

• Physical health: through supplementary health insurance or partnerships with sports facilities.
  
• Mobility: via fuel vouchers, company cars, or discounts on public transport and bicycle purchases.
  
• Cultural activities and leisure: through museum subscriptions, training incentives, and partnerships for travel and experiences.
  
• Family: supported through flexible working, childcare, parental leave, and other forms of assistance.
  
• Mental health: by facilitating access to professionals and wellbeing programs for staff.

Today, offering an adequate salary is no longer enough: people are increasingly attentive to their wellbeing and value what the company provides in terms of workplace wellbeing. However, it is not included in all types of contracts.

Corporate welfare is an addition to traditional salary which is fundamental but no longer enough to retain people within the company. However, it is not included in all types of contracts.

1.1 What is the connection between welfare and organizational wellbeing? 

Organizational wellbeing, or corporate wellbeing, involves everything that can be done by the company to improve people’s wellbeing. It’s not just about physical health, but also psychological balance and the quality of relationships within and outside the workplace.

Corporate welfare acts as a strategic asset that enables companies to take holistic care of their people, supporting them at every level of wellbeing.

Wellbeing becomes a shared value and, through these targeted investments, companies create value, improving the quality of the work life and strengthening the sense of belonging, motivation and trust.

2. Each Company, Its Own Welfare Model

More and more people choose where to work and whether to stay based on the company’s ability to take care of their wellbeing.

This change in perspective is particularly evident among younger generations: the Ranstad Workmonitor Pulse Survey 2025 shows that 62% of Gen Z workers would prefer a job with a lower salary but better benefits, rather than the other way around.

The report “The state of work-life wellness 2025” by Wellhub highlights the growing importance of wellbeing in companies.

According to the research, 85% of people believe that it is the organization’s responsibility to contribute to their wellbeing, and 89% of respondents state that when looking for a new job, they consider only companies that show a transparent and concrete commitment to organizational wellbeing.

When it comes to wellbeing, it is difficult to define its most important elements: every generation and every individual has unique needs, priorities and expectations.

Since corporate welfare is designed to meet people’s needs, every company must first understand what truly matters to those who experience the organization every day. According to the Wellhub study, Millennials consider childcare support particularly important, while Baby Boomers tend to prioritize healthcare support over other types of assistance.

This is why, when discussing the effectiveness of corporate welfare, it is essential to link it to the concept of wellbeing and to understand how this term is perceived by the people within a company.

Wellbeing and corporate welfare are therefore closely linked. Today, considering the wellbeing of their people is a strategic priority for companies that want to be attractive both externally and internally. The range of benefits, allowances, and financial support offered through corporate welfare addresses this need in a tangible way.