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Employee wellbeing ‘crucial factor’ for retention, but research reveals disconnect

by Benefits Expert
07/10/2025
Mindfulness, positive thinking, mental health, wellbeing
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More than a quarter (26 percent) of UK employees believe their employer is responsible for their wellbeing, but just 29 percent feel their employer actually cares.

Research from Reward Gateway, conducted with 4,002 UK employees, has found that in spite of growing awareness of wellbeing at work, many employers are still failing to meet employee expectations. 

More than a third (34 percent) of workers say they are more loyal to a company that cares for their wellbeing. And almost nine in ten (88 percent) believe businesses that prioritise staff wellbeing retain employees for longer.

The findings, published in the provider’s 2025 Workplace Wellbeing Report, underline the business case for HR and reward teams to make wellbeing a strategic priority, as wellbeing support becomes a key differentiator in both recruitment and retention.

However, the report highlights a clear disconnect between what employees need and what they receive. Just 26 percent of employees say they have access to workplace benefits that help them manage their wellbeing, and fewer than one in five (18 percent) say their employer spends “a lot of time and effort” focusing on wellbeing.

In practice, this lack of visible action could be damaging engagement and trust. Only 26 percent of employees feel comfortable talking about mental health at work, while just 21 percent would stay with their employer because of the support provided. A further 15 percent said wellbeing support was the main reason for joining and staying with their current business.

Chris Britton, people experience director at Reward Gateway, said: “It’s crystal clear that wellbeing is increasingly taking priority for employees, and employers need to be taking note.

“With more than a quarter believing that employers share responsibility for their wellbeing, having propositions, benefits and values in place that meet the evolving needs of employees is becoming a crucial factor in recruitment and retention for businesses.

“As sourcing and retaining talent becomes harder in a competitive environment, companies who fail to meet the wellbeing demands of their employees risk losing staff, reducing productivity and ultimately damaging their bottom line.”

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The study also explores who employees view as most responsible for their wellbeing. Partners or spouses topped the list at 41 percent, followed by doctors and healthcare providers (27 percent) and employers (26 percent). Other groups seen as having a role include parents and children (16 percent each), friends (15 percent), and the government (13 percent).

Reward Gateway said the data sends a clear message to HR leaders: with employee expectations shifting, wellbeing can no longer be treated as a ‘nice to have’. Instead, it must be built into company culture, leadership training and benefits strategies to maintain engagement and protect retention in a tightening labour market.

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Benefits Unboxed
Benefits Unboxed

The podcast from Benefits Expert, the title for HR, reward and benefits professionals.

Seasoned professionals examine the challenges and innovations in today’s employee benefits, reward and HR sector. Every episode, they will unbox a key issue and unpack what it really means for employers and how they can tackle it.

The regulars are Claire Churchard, editor of Benefits Expert; Carole Goldsmith, HR director at the Royal Horticultural Society, and Steve Herbert, consultant and rewards & benefits veteran.

Benefits Unboxed – Hybrid work: reality versus rhetoric
byBenefits Expert from Definite Article Media

Return-to-office mandates are a topic that’s generating plenty of heat in the media, but how closely do the headlines match workplace reality? 

In this episode, one of a three-part series of 10-minute podcasts, hosts Claire Churchard and Steve Herbert discuss data that shows remote or home working is on the rise.

We look at what this means for HR, from balancing employee flexibility with business needs, to ensuring benefits packages remain fair and accessible. We discuss the pinch points, and the opportunities, in building the new normal of work.

Benefits Unboxed – Hybrid work: reality versus rhetoric
Benefits Unboxed – Hybrid work: reality versus rhetoric
31/08/2025
Benefits Expert from Definite Article Media
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