As sickness absence costs soar, employers increasingly view healthcare benefits as a “must have”. The continued shift from voluntary to company-paid cover, alongside “living portfolio” strategies, is reshaping healthcare access. But the challenge is separating genuine impact from fads, or worse, wellbeing-washing, writes Jerome Smail.
NHS pressures, the high cost of sickness absence and shifting employee expectations have pushed healthcare benefits from a perk to a priority. Employers are investing to speed up access to care, prevent avoidable absence and signal they are the kind of organisation people want to join – and stay with.
Recent reporting shows NHS access anxiety is widespread – 62 percent of employees say it’s difficult to book a GP appointment and 81 percent are worried about pressure on the health service – turning a public backlog into a workplace problem.
Debra Clark, head of wellbeing at Towergate Employee Benefits, says NHS pressures are “clearly a concern for employers”.
She explains: “In our research we found that 49 percent of companies were worried about the physical health and wellbeing of their staff due to difficulties seeing a GP, with pressures on the NHS meaning that it was harder to get a diagnosis and treatment.”
According to Ed Watling, head of health and wellbeing benefits at Mattioli Woods, productivity is being affected by employees who have health conditions and are struggling to access treatment.
What’s more, the pressures on the NHS mean that there is increasing demand from employees for employers to provide healthcare benefits. “From a retention and recruitment point of view, healthcare benefits are becoming a ‘must have’,” Watling insists.
Paul Shires, director at Health Shield Friendly Society, adds weight to the business case with data showing that “88 percent of employees are more likely to stay with an employer providing health and wellbeing benefits”.
What employees want
The most effective benefits are those employees can use easily and feel immediately. Watling notes health cash plans are “possibly the most popular” because they cover everyday needs, such as dental, optical and musculoskeletal, and employees can “feel” the benefits quickly.
Digital access is reshaping expectations. Laura Scanlan, head of private partnerships at Livi UK, says virtual GP access is now “one of the most valued workplace benefits in the UK”, with 42 percent of organisations reporting it as their most used support.
“In just six months, appointment volumes have tripled across the companies we partner with, now reaching more than 80,000 employees,” she explains. “Employees increasingly want healthcare they can access quickly and around their schedules, not something that eats into their workday.”
Shires also reports strong engagement with digital tools, including a 51 percent year-on-year increase in virtual GP usage, and rising demand for screenings and family-focused benefits, such as maternity and family planning.
For employers, Scanlan adds, value comes down to outcomes: healthier employees, fewer sick days, and a benefits package people actually appreciate.
For Hannah Power, employee experience expert at Reward Gateway Edenred, context matters.
“Benefits like private medical insurance (PMI), healthcare cash plan and a virtual GP can be seen as standard in some industries, and exclusively for C-suite in others,” she explains, emphasising that a specific package that will help an employer stand out will depend on the industry and demographic of employees.
“If you want to attract the best talent, think about what they want,” she advises. “Is it fertility support, or therapy?”
Katharine Moxham, spokesperson at group risk industry body Grid, reminds employers not to overlook embedded support within group risk.
“Group income protection products will include fast access to counselling and physio, vocational rehabilitation support and case management for absent employees,” she notes. Combined with EAPs, second medical opinion services and online GP, this creates “a powerful prevention and back-to-work service”.
Employers are adapting
Shires reports a “continued shift from voluntary cover to company-paid cover”, with both large corporates and SMEs opting for higher levels of cash plan and broadening provision to the whole workforce.
That aligns not only with research from Howden Employee Benefits, but also several wider trends; employers are prioritising prevention, mental health access and faster routes to diagnostics, as the NHS shifts from hospital to community, analogue to digital, and sickness to prevention. It’s a journey in which employers will remain critical partners.
And as investment in health benefits grows, personalisation is becoming a key differentiator.
Dominique Kent, CEO of Bluecrest, reveals: “We hear from our own corporate customers, and indeed our own staff, that employees want benefits that feel personal, preventative and accessible.”
Echoing the point, Amanda Cran, group healthcare proposition leader, corporate consulting at Gallagher, believes health benefits in 2025 are all about flexibility and choice.
“Younger employees often value digital tools and wellbeing support, while more senior employees may prioritise specialist access or preventative screenings,” she explains. “The employers who really stand out are the ones who personalise benefits, giving different groups of employees something meaningful.”
Kate Jelonek, head of people & culture at Clarity Global, advocates a ‘living portfolio’ approach. “The benefits that really make a difference in 2025 are those that meet people where they are in life,” she insists. “It’s important to prioritise support that adapts to different life stages, combined with real flexibility and fast, reliable access.”
Rather than making assumptions based on age alone, Clarity Global has designed benefits to address key events and transitions. These cover support for enhanced family leave, mental health, menstrual health, fertility and IVF and menopause. “This way, employees can access the right help at the right time,” Jelonek insists.
Prevention as a strategic priority
The old saying ‘prevention is better than cure’ applies to health benefits too. Towergate’s research found the majority of employers (59 percent) used wellbeing initiatives as a preventative measure to prevent absence in the first place.
“Employers are investing because prevention costs less than a reactive treatment and pays off long-term,” Cran explains. “It also sends a clear signal to employees: we’re not just here for you when something goes wrong, we’re here to help you stay well from the start.”
Similarly, Watling reports “a significant increase in demand for health assessments” and growing interest in home testing kits.
For Kent, early intervention is a “huge opportunity” for employers to build resilience and greater knowledge into their workforce. She also encourages the use of anonymised health data to target support. “The real value is in preventing avoidable problems and ensuring resources are directed where they can make the most difference,” she says.
Making the business case – ROI, value and measurement
When budgets are tight, leaders want to weigh values alongside returns. “But is it about return on investment or value of investment?” Clark asks, insisting that health investment is simply “the right thing to do”.
“Companies who invest in their people, including their health and wellbeing, have happier staff and happier staff are more productive, less absent and more loyal,” she explains.
But for those interested in hard figures, Onebright has launched a return on investment calculator. Alison Bromley, the company’s head of partnerships, reveals: “The average cost to a business of an absent employee, as calculated on the ROI tool, comes in at £212 a day. Meaning a business of 100 employees could save over £42,000 over the course of a year by reducing the number of absences by two days each.”
Clark and Bromley also cite Deloitte research indicating that for every £1 spent on mental health initiatives, £5.30 is returned.
From noise to meaningful action
Clark warns against ‘wellbeing-washing’. Employers should avoid following trends without relevance. Instead, they should ask employees what they value, and maintain clear lines of communication.
“There is no point offering great benefits if no one knows about them,” she says, also noting that 62 percent of companies in Towergate’s research said they are communicating more frequently about health and wellbeing. “While this is great and shows businesses understand the importance of communicating, frequency alone doesn’t mean it is effective,” she adds.
Equity is another important consideration. Shires urges employers to examine whether lower earners feel as supported as higher earners. Power, meanwhile, recommends transparency about budget constraints and, where needed, offering core employer-funded cover with options to self-fund add-ons.
But while costs need to be balanced, don’t overlook the importance of a solid offering. Jelonek explains: “Despite rising premiums, we continue to support and offer private medical insurance because it underpins timely care. By offering this, we help employees recover faster and take less time off, delivering a clear ROI of healthy, happy and engaged employees.”
Policy and practice are converging. With long-term sickness now a national priority and the NHS aiming to shift from hospital to community and from treatment to prevention, the role of employers in supporting access and resilience is expanding.
For HR and benefits leaders, the formula for 2025 and beyond is clear enough. Ask employees what they value, build an inclusive and flexible offer, communicate it well, and measure what matters.
Follow that, and healthcare stops being a perk at the edges and becomes a performance lever at the core of the employee proposition.
