UK employers are increasingly focusing on mental and physical wellbeing, yet may overlook key employee concerns.
- New research highlights a significant gap between employer wellbeing programmes and employee needs, especially financial support.
- While 72% of employers target mental wellbeing, only 24% give priority to financial wellbeing, a pressing employee concern.
- Two-fifths of employees face moderate issues in at least two wellbeing areas, leading to decreased work engagement.
- Employers plan to integrate wellbeing into strategic frameworks, but current efforts are perceived as inadequate by employees.
UK employers are increasingly recognising the importance of supporting their employees’ wellbeing. However, recent research reveals a notable mismatch between the focus of employer wellbeing programmes and the actual needs of employees. The Wellbeing Diagnostic Survey by WTW found that while 72% of employers are investing in mental wellbeing and 45% in physical wellbeing, the support for financial wellbeing remains lacking. Only 24% of employers prioritise financial wellbeing, despite 59% of employees highlighting it as their primary concern.
Fewer companies offer comprehensive financial education or personalised decision support concerning spending, saving, and borrowing. This oversight has contributed to two-fifths of employees experiencing moderate or major issues in multiple wellbeing areas. Such issues have tangible effects in the workplace, with higher absenteeism, presenteeism, and burnout rates reported.
Stress levels continue to rise, with almost two-thirds of employees indicating above-average stress levels, and approximately 40% experiencing anxiety or depression symptoms. This growing mental health challenge has made employee wellbeing a pivotal aspect of many organisations’ human capital strategies.
Kazune Kozen, Clinical and Data Analytics Lead in Health & Benefits at WTW, emphasises the need for alignment in wellbeing investments, acknowledging that high-performing organisations tend to report better business outcomes, including financial performance and employee retention.
Despite these programmes’ benefits, employee perceptions of their effectiveness have declined since the pandemic, dropping from 38% effectiveness in 2022 to just 27% now. This disconnect is apparent as 69% of employers believe their programmes support employee health effectively, while only 29% of employees agree.
In response, many employers aim to make wellbeing a foundational strategy element within the next three years, up from the current 8%. Improved communication and a stronger connection between wellbeing initiatives and company culture are key areas of focus. Gaby Joyner, Head of Employee Experience Europe at WTW, stresses the importance of delivering effective wellbeing initiatives and creating a culture that resonates with employee values.
Employers must realign their wellbeing strategies to better meet employee needs, particularly in financial support.
