Workplace wellbeing shifts from perk to business risk as employers struggle to keep pace 

Workplace wellbeing is emerging as a growing strategic risk for UK employers, as rising employee expectations outstrip organisations’ ability to deliver meaningful support. 

New research from EGYM Hussle found that 82 per cent of employers feel increasing pressure to improve their wellbeing and benefits offering. Yet many report structural barriers that prevent progress, raising concerns about the sustainability and effectiveness of current wellbeing strategies. 

More than 90 per cent of employers believe better wellbeing support would improve productivity and workforce retention, suggesting strong alignment on intent. However, the research highlights a widening gap between aspiration and execution, with cost, capacity and suitability of provision continuing to limit delivery. 

One quarter of employers cited cost as a major barrier to expanding wellbeing support, while 19 per cent said they lack the internal time and resource needed to manage wellbeing effectively. A further 17 per cent said existing wellbeing suppliers do not adequately meet the needs of their workforce, pointing to growing frustration with one-size-fits-all approaches. 

Hybrid working has intensified these challenges. Nearly three-quarters of employers said they struggle to provide benefits that work consistently across office-based, remote and hybrid employees. As a result, wellbeing provision remains uneven. While flexible working hours (57 per cent) and mental health support (47 per cent) are relatively widespread, access to physical activity and fitness support remains limited, with just 33 per cent of employers offering gym or fitness services. 

The pressure is most acute among smaller organisations. Among businesses with one to 49 employees, 43 per cent identified cost as a key obstacle to providing wellbeing benefits, compared with 22 per cent of organisations employing 100 to 500 people and 13 per cent of those with more than 500 employees. The findings suggest a growing divide in employers’ ability to compete on wellbeing, with implications for talent attraction and retention. 

The consequences are already being felt. Nearly eight in ten employers reported higher levels of stress and burnout among employees over the past year, a trend that has prompted more than 80 per cent of organisations to seek new wellbeing solutions in 2026. 

Neil Harmsworth, co-founder and chief operating officer at Hussle, said wellbeing is increasingly shaping organisational competitiveness. “The research clearly shows wellbeing is now a competitive issue. Leaders know it drives productivity and retention, but many are blocked by cost and by benefits that don’t work for hybrid teams,” he said. “Employers need flexible, accessible support that people can use in real life, not just on paper.” 

The findings point to a shift in how workplace wellbeing is positioned, from a discretionary benefit to a core component of workforce strategy. As expectations continue to rise, employers that fail to translate intent into delivery risk falling behind in an increasingly competitive labour market.