Health and wellbeing edges ahead of salary as top recruitment and retention priority

Health and wellbeing support has overtaken salary as the most important factor influencing recruitment and retention strategies for UK employers. According to new research from employee benefits provider Everywhen, and based on a survey of 500 HR decision-makers, 44 per cent of employers now rank health and wellbeing support as one of the most important factors in attracting and retaining talent, narrowly ahead of salary levels at 43 per cent.

The findings highlight the increasingly strategic role workplace health and wellbeing is playing as employers continue to compete for talent against a backdrop of skills shortages, rising economic inactivity and growing expectations around employee experience.

Working hours and practices were identified as important by 42 per cent of employers, followed by training and career progression (38 per cent) and company culture and ethos (33 per cent). Pension provision (23 per cent) and environmental, social and governance (ESG) strategy (14 per cent) were considered less influential.

The research also suggests that health and wellbeing support has become a significant retention tool. Nearly four in 10 employers (39 per cent) said the support they provide is a key reason employees remain with the organisation, while almost a quarter (24 per cent) said it helps attract new recruits.

More than a third (34 per cent) said they are using health and wellbeing support strategically to recruit and retain specific workforce groups, such as employees of different ages or genders.

However, nearly one in five employers (19 per cent) admitted their organisation does not currently offer enough health and wellbeing support and believe this is affecting their ability to recruit and retain staff.

Debra Clark, head of wellbeing at Everywhen, said the findings demonstrate just how much employee expectations have shifted. “We were hoping and expecting that employers would recognise the important role health and wellbeing support plays in recruitment and retention, but even we were surprised that it is seen as more important than salary.”

Clark said the findings reinforce the business case for investing in employee health rather than viewing wellbeing initiatives as optional benefits.

“It is great that employers recognise how they can use health and wellbeing benefits to recruit and retain specific demographics, helping to find and match talent with any gaps in the workplace. This shows how employee benefits can be as fundamental to the health and wellbeing of the company as they are to the health and wellbeing of the workforce.

“For the 19 per cent that feel their recruitment and retention is negatively impacted by lack of health and wellbeing support, perhaps this can help to prove that the outcome is worth the investment.”

The research also revealed notable differences between organisations of different sizes. Larger employers appear to place greater emphasis on health and wellbeing than smaller businesses, with 52 per cent of organisations employing more than 250 people identifying wellbeing support as a leading recruitment and retention factor, compared with 39 per cent of smaller organisations.

By contrast, salary remained the top priority for SMEs, with 45 per cent citing pay levels as a key factor, compared with 40 per cent of larger employers.

Clark suggested this presents an opportunity for smaller employers seeking to compete with larger organisations for talent.

As organisations continue to face skills shortages, an ageing workforce and increasing levels of long-term sickness absence, investment in workforce health is becoming closely linked to organisational resilience and business performance. The challenge for employers is no longer whether to invest in health and wellbeing, but how to design programmes that meet the diverse needs of today’s workforce while delivering measurable outcomes.