UK SMEs in the financial services and health sectors have come in third, 77 per cent, in companies offering comprehensive wellbeing benefits, according to research by Unum.
But IT and telecoms lead the way, with 85 per cent of firms offering comprehensive wellbeing benefits and in contrast, retail drops to 51 per cent and hospitality and leisure to just 49 per cent.
According to Unum’s latest report, ‘Healthy Workforce, Thriving Economy: Backing Britain’s SMEs’, this divide risks deepening health inequalities, weakening workforce resilience and slowing the pace of economic recovery in the UK.
The report says that for SMEs, investing in wellbeing helps attract and retain talent, reduce absenteeism and boost performance. Employees in professional services often benefit from mental health support and financial protection, but millions in lower-wage, customer-facing roles remain without comparable support.
Meanwhile, financial pressures are compounding the challenge with two-thirds of hospitality and leisure businesses and 60 per cent of retail firms say increases to the National Minimum Wage and National Living Wage are impacting their ability to invest in employee benefits.
Additionally, while 71 per cent of SMEs offer at least one wellbeing initiative, uptake drops sharply among smaller firms due to time, resource and expertise constraints, creating the risk of a two-tier workforce.
Unum is urging policymakers to act to avoid the wellbeing divide widening and the UK’s economic recovery stalling. It says that the solution is within reach as targeted tax incentives, clearer guidance and stronger support could unlock vital investment in employee wellbeing across the SME sector, backing the businesses that keep Britain working.
Unum UK CEO Mark Till says: “SMEs are the backbone of the UK economy, employing nearly 17 million people. But our research shows a widening gap in the wellbeing support they are offering their workforces. Higher-margin sectors such as professional services are able to invest more, while retail, hospitality and leisure firms are struggling to keep pace – a divide that threatens the UK’s economic resilience.”
“Rising costs and economic uncertainty are making it harder for SMEs to prioritise wellbeing, but ill-health is now the biggest driver of economic inactivity” added Mark. “If we don’t act soon, millions of workers will be left behind at a time when businesses need to be more competitive – and productive – than ever before.”
