While UK employers prioritize physical and mental wellbeing, they overlook employees’ critical need for financial support.
- The Wellbeing Diagnostic Survey reveals a distinct gap between employer focus and employee needs.
- Despite the emphasis on mental and physical health, financial wellbeing remains a low priority for employers.
- A significant portion of employees report high stress levels and mental health challenges.
- Employers aim to integrate wellbeing into corporate strategy, yet effectiveness declines.
UK employers have placed a spotlight on employee wellbeing, with a notable emphasis on mental (72%) and physical (45%) health, reflecting a growing concern over declining mental health and poor physical health among a quarter of the workforce. However, a discrepancy exists between employer efforts and employee needs, as highlighted by the Wellbeing Diagnostic Survey conducted by WTW. Employees have expressed that financial wellbeing is their paramount concern, yet it remains a lower priority for employers, with merely 24% addressing it adequately.
Many organizations provide foundational financial support through insurance and retirement plans; however, they often overlook the necessity of educating employees on handling finances or offering personalized financial advice for spending, borrowing, and saving. This gap is concerning, considering that two-fifths (42%) of employees face moderate or major wellbeing issues in at least two areas. Consequently, poor health across any dimension can result in higher rates of absenteeism, presenteeism, and burnout, undermining employee engagement.
The survey further reveals that 59% of employees experience above-average stress levels, while 40% exhibit anxiety or depression symptoms. Kazune Kozen, Clinical and Data Analytics Lead in Health & Benefits at WTW, emphasizes that while initiatives aimed at improving physical and mental wellbeing have elevated perceptions of these programs, a disconnect persists between employer investments and employee expectations.
Though some employees benefit from current wellbeing programs, their overall effectiveness has waned since the pandemic, dropping from 38% in 2022 to 27% presently. A significant disparity remains between employers, 69% of whom perceive these programs as vital, and the workforce, with only 29% in agreement. This discrepancy raises questions about how employers can better align their wellbeing initiatives with employee needs.
Looking forward, 35% of employers are motivated to embed wellbeing as a fundamental aspect of their human capital strategy over the next three years, a significant increase from the current 8%. Additionally, 65% plan to enhance communication around these programs and establish a connection between wellbeing initiatives and company culture to foster an environment supportive of employee health.
Gaby Joyner from WTW acknowledges that while delivering effective wellbeing programs is essential, so is ensuring these initiatives are accessible and integrated into a company’s culture. Establishing the right priorities to address diverse employee needs is crucial for a robust employee experience and improved service utilization.
Employers must bridge the gap between their wellbeing programs and the actual needs of employees to ensure a truly supportive work environment.
