UK employers increased their per-employee spend on wellbeing initiatives by an average of 23 per cent over the past twelve months, according to a survey of HR leaders at more than 400 organisations. The rise reflects a growing acceptance that hybrid and remote working patterns, now firmly embedded across much of the economy, require a different approach to staff support.
The survey, conducted by an employee benefits consultancy, found that mental health support was the single largest area of new investment, with 67 per cent of respondents reporting expanded access to counselling services and digital therapy platforms. Physical wellbeing programmes, including gym subsidies and health screenings, saw a 14 per cent increase in uptake.
“The conversation has moved on from whether employers should invest in wellbeing to how they should do it effectively,” said Dr James Okonkwo, a workplace psychologist who advises FTSE 250 firms. “What we are seeing now is a more sophisticated approach, less about fruit bowls and yoga Fridays, more about structural support that addresses the root causes of burnout and disengagement.”
Flexible working legislation, which came into effect in April 2024 giving employees the right to request flexible arrangements from day one, appears to have accelerated the trend. Organisations that have formalised hybrid policies report lower staff turnover and higher engagement scores than those still operating under ad-hoc arrangements, the survey data suggests.
However, the picture is not uniform. Smaller businesses, particularly those with fewer than 50 employees, are struggling to match the wellbeing offerings of larger competitors. Several industry groups have called for tax incentives to help SMEs provide access to occupational health services and employee assistance programmes.
The cost-of-living pressures that have characterised the past two years continue to feature prominently in employee surveys, with financial wellbeing, covering everything from debt advice to salary sacrifice schemes, emerging as a priority area for the coming year.
“Employers who treat wellbeing as a tick-box exercise will find themselves at a competitive disadvantage,” Okonkwo added. “The labour market remains tight in key sectors, and candidates are increasingly weighing cultural factors alongside salary when choosing between offers.”