How employers support the health and wellbeing of their workforce is set to become a crucial factor in recruitment and retention strategies, with 61% of organisations recognising its importance over the next year.
Research from Towergate Employee Benefits highlights the growing significance of wellbeing initiatives in a job market where competition for talent is expected to intensify.
The findings suggest that UK employees are becoming more willing to change jobs, following a period in 2024 known as ‘The Great Stay’, where disengaged workers lacked the incentive to seek new opportunities. With 39% of employees now considering a job move in the next 12 months, employers will need to take proactive steps to retain their workforce.
Recruitment is also expected to become more challenging. Nearly half (47%) of surveyed businesses anticipate greater difficulty in hiring talent in 2025, while 44% believe retaining employees will also become harder.
Debra Clark, head of wellbeing at Towergate Employee Benefits, says, “Our research shows that recruitment and retention will be big challenges for employers in 2025. A real shake-up in the way employers go about this is going to be required this year if employers are to find and retain enthusiastic, experienced and productive talent.”
Wellbeing as a Key Driver for Employee Retention
More than a third (36%) of employers believe their approach to employee health and wellbeing is a major factor in attracting talent, while 35% say it is a key reason why employees choose to stay. Additionally, 32% acknowledge that tailored wellbeing support plays a role in recruiting and retaining key demographic groups.
Nearly a quarter (24%) of businesses rank their health and wellbeing package as the area most likely to grow in importance for recruitment and retention. This priority surpasses other forms of support, including mental health (20%), financial wellbeing (12%), physical health (9%), social interaction (9%), and environmental, social, and governance (ESG) factors (8%).
Despite this, 16% of employers admit their current wellbeing support is insufficient, affecting their ability to recruit and retain staff. This suggests there is still progress to be made in ensuring benefits align with employee expectations.
The Importance of Targeted Benefits and Communication
To remain competitive, businesses must ensure their wellbeing offerings are strategically designed and effectively communicated. This involves tailoring benefits to workforce demographics, considering factors such as age and gender, to create inclusive support structures that attract and retain employees.
However, even well-designed benefits packages can fail to make an impact if they are not properly recognised or utilised. Clark stresses the importance of clear communication, not just during recruitment but throughout an employee’s tenure.
“Only if health and wellbeing support is comprehensively targeted and communicated will it meet the demands of its role in recruitment and retention. Then it will also achieve so much more in terms of the business as a whole,” she adds.
