Health and wellbeing is the key to talent strategy in 2025

New research from Towergate Employee Benefits reveals 61% of organisations believe their employee wellbeing support will be crucial for talent management in 2025.

The study comes at a critical time, with 39% of UK employees considering a job change in the next 12 months.

Against this backdrop, 47% of employers anticipate increased recruitment challenges, while 44% expect retention to become more difficult.

The research highlights wellbeing’s growing importance in employment decisions:

• 36% of employers say their health and wellbeing support is a key attraction factor
• 35% cite it as a crucial retention tool
• 32% report it helps attract and retain specific demographic groups

Notably, health and wellbeing packages top the list of areas expected to gain importance for talent management, ranking above mental health support (20%), financial health (12%), and physical health initiatives (9%).

However, there’s room for improvement, with 16% of employers acknowledging their current wellbeing support is insufficient for effective talent management.

"Our research shows that recruitment and retention will be big challenges for employers in 2025," says Debra Clark, head of wellbeing at Towergate Employee Benefits. "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."

Strategic Implementation

Success in using wellbeing benefits for talent management requires two key elements:

1.Targeted Benefits Design

• Benefits must be competitive and carefully researched
• Packages should be tailored to workforce demographics
• Regular consultation with advisers is essential

2. Effective Communication

• Benefits must be clearly communicated during recruitment
• Regular updates throughout employment maintain engagement
• Communication strategies should be regularly reviewed

"Only if health and wellbeing support is comprehensively targeted and communicated will it meet the demands of its role in recruitment and retention," Clark concludes. "Then it will also achieve so much more in terms of the business as a whole."