The development of employee beneﬁts has been changing and is likely to continue changing as a result of the eﬀects of a combination of a growing and competitive insurance market, demographic and labour market changes and social regulation within the EU. There have been cutbacks in the most costly beneﬁts and at the same time a growth in low-cost lifestyle and voluntary beneﬁts. These seem to ﬁt with a changing employment scene in which women, particularly mothers, have increased their labour market participation. While recruitment and retention arguments may be made by employers, in support of their beneﬁts policies, the evidence of the motivational value of beneﬁts is slight. Some of the literature focuses on organisational outcomes such as employee retention and productivity eﬀects, tempered by other research, which stresses the importance of employee knowledge about beneﬁts in aﬀecting their estimations of the value of their beneﬁts package. The future for beneﬁts is uncertain in light of rising costs and the ageing of the workforce, although continued incremental change seems more likely than radical revisions of beneﬁts provisions.