Over 80% of businesses see surge in employee demand for wellbeing benefits

A recent study by employee benefits technology company Zest reveals that a whopping 83% of UK businesses are witnessing a substantial increase in employee requests for more comprehensive wellbeing benefits in the workplace.

This research underlines the growing significance employees attach to wellbeing benefits as an integral part of their total compensation package, making  these perks a top priority for the workforce.

Businesses are proactively responding to this surge in demand for wellbeing benefits, with more than seven in ten (71%) introducing a Head of Wellbeing role or its equivalent. These positions play a crucial role in engaging with employees to understand and address their wellbeing needs, as an overwhelming majority (89%) of employers report that their workforce is now more inclined to discuss wellbeing at work.

However, there remains room for improvement, as fewer than one in five (19%) businesses currently provide a wellbeing allowance as part of their benefits package. This suggests that some companies have yet to fully align with the evolving preferences of their workforce.

By neglecting investments in wellbeing benefits during a competitive hiring landscape, businesses run the risk of missing out on top talent, which can impact growth plans and competitiveness.

Despite 82% of businesses increasing their investment in wellbeing benefits, a concerning 57% acknowledge that employee wellbeing is currently at an all-time low. This underscores the urgent need for employers to further develop and refine these packages.

Paid mental health leave emerges as the most popular wellbeing benefit among UK employers, with nearly a quarter (24%) offering this option. Other favoured choices include cycle-to-work schemes (23%), mindfulness programs (21%), and menopause support (17%).

Matt Russell, CEO at Zest, emphasises, "Employers not investing in their benefits packages will struggle to keep pace as the wellbeing revolution continues to accelerate. They risk being left behind by competitors and could face a real struggle to attract and retain key talent if they don’t listen to the demands of their workforce."

Russell adds, "Many people struggled with their mental wellbeing during Covid, and then the cost of living crisis took a toll on their financial wellbeing – employers need to ensure that their employee benefits packages are offering the right tools to support both."

Russell also highlights the positive trend of businesses appointing Heads of Wellbeing or similar roles, indicating a direct line of communication with the workforce and ensuring that employees have access to the necessary support and compensation during these challenging times.