Wellbeing overtakes pay as UK employees cling to jobs without thriving 

Wellbeing has overtaken cost of living as the leading concern for UK employees, even as headline engagement levels appear to have stabilised, according to new research into workforce sentiment and confidence from Mercer.  

The latest Inside Employees’ Minds 2025–2026 report, based on responses from more than 4,000 UK workers, shows employee confidence in health, skills and financial security has become the defining issue shaping how people feel about work. While overall engagement has dipped only slightly, from 69 per cent in 2023 to 67 per cent in 2025, the report warns this surface calm is masking deeper unease across the workforce.  

Physical and mental health, workload pressure and work-life balance now dominate employee worries, overtaking financial concerns for the first time in recent years. This shift reflects growing strain on UK workplace health and wellbeing, with many employees struggling to access timely healthcare and to recover from sustained periods of high workload and stress. The report highlights that 41 per cent of UK employees say they have been directly affected by difficulties accessing healthcare, reinforcing the role employers play in supporting health at work. 

Despite these pressures, many employees are staying put. Job security has overtaken salary as the main reason people remain with their employer, followed closely by flexible working arrangements and fair pay. However, the research suggests this stability is often driven by caution rather than commitment. Many workers are described as “job hugging”, remaining in roles because of job market uncertainty rather than because they feel fulfilled or supported at work. 

Fairness in pay has emerged as a critical issue for retention. While perceptions of fair pay have improved, unfair pay is now the leading driver of employees choosing to leave, alongside excessive workload and negative work culture. The report notes that only 12 per cent of employees believe their organisation has a genuinely healthy culture, underlining the gap between wellbeing policies and lived experience in many UK workplaces. 

The findings point to a growing confidence gap, particularly among mid-career employees who report lower confidence in both their financial future and career progression. Many want to reskill but lack clarity on how new skills translate into opportunity or reward. This has implications for productivity and long-term workforce sustainability, especially as employers face ongoing skills shortages and rising health-related economic inactivity in the UK. 

The report concludes that employers who treat health as a business imperative, rather than a discretionary benefit, will be best placed to retain talent and improve performance. Clear communication about health support, proactive approaches to mental and physical wellbeing, fair pay practices and stronger links between skills, reward and progression are all identified as priorities for rebuilding employee confidence. In the context of mounting pressure on public health services, the workplace is increasingly central to protecting health, wellbeing and long-term participation in work across the UK.