How employee wellbeing can save UK businesses

Key takeaways

Conducted in partnership with YouGov, YuLife, a Group Insurance company, just launched their What Employees Want: Workplace Wellbeing Trends in 2025 report, surveying 1,046 UK employees to uncover key insights into workplace wellbeing trends, such as:

● Women are falling behind men when it comes to workplace

wellbeing – only 54% of women rate their wellbeing as “good”, compared to 63% of men.

● Flexible working is the most sought-after workplace benefit, with 46% of

women citing it as their top request for 2025.

● Employees are increasingly prioritising financial wellness in their career decisions.

The hidden cost of poor workplace wellbeing

Imagine walking into an office in which nearly half of the workforce feels disengaged, productivity is stagnant and absenteeism is at an all-time high.

This isn’t a hypothetical scenario – it's the reality businesses across the UK face.

Poor wellbeing is silently eroding the UK economy, and absenteeism due to poor mental health is costing UK businesses a staggering £45 billion a year.

The triple whammy of absenteeism, presenteeism and high employee turnover makes businesses less efficient and adds substantial costs to organisations of all sizes.

YuLife’s What Employees Want: Workplace Wellbeing Trends in 2025 report, conducted in partnership with YouGov, reveals the key workplace wellbeing trends and the areas employees should be prioritising – and there is plenty of work to be done.

YuLife founder and CEO Sammy Rubin explains, “Now is our chance to redefine what it truly means to care for our teams, bridging the gaps left by traditional healthcare systems and building workplaces where people feel valued, supported and empowered.

This isn’t just about what’s ahead – it’s about what we can do right now.”

The current state of workplace wellbeing

Despite significant improvements over the past decade, the YuLife survey reveals that wellbeing at work remains a work in progress. As of December 2024, just over half of women (54%) and nearly 10% more men (63%) rated their wellbeing at work as “good”.

The survey data identifies a strong correlation between employee retention and wellbeing: while 71% of employees with good wellbeing are happy to stay in their jobs, only 30% of those with poor wellbeing feel the same way. Businesses that fail to prioritise employee wellbeing are not only bleeding talent but also losing their competitive edge. It’s a boardroom-level crisis.

The impact of economic uncertainty on workplace wellbeing

With no end to the ongoing cost-of-living crisis in sight, it’s not surprising that economic uncertainty (23%) was the top concern for all employees surveyed, followed by job security (20%). A total of 40% of employees state that subpar compensation or pay would be the top reason for them to seek new employment in 2025.

Increased financial stress directly impacts employee focus, mental health and productivity.

Employers can help by promoting salary transparency and offering financial literacy programmes or enhanced benefits, such as salary advance schemes or pension contributions.

“There is a lot of uncertainty in the political and economic worlds right now,” explains Debra Clark, Head of Wellbeing at Towergate, a specialist business and personal insurance company. “Companies have to be better at communicating that people are psychologically safe.”

What employees really want at work

1 – A total of 46% of women cite flexible working as their most valued benefit.

Flexible working remains a top demand among employees. The ability to control work schedules improves work–life balance, mental wellbeing and productivity.

Companies that continue to offer flexible or hybrid models are more likely to retain their workforce, while those reversing flexible policies risk higher resignation rates. Employers must rethink rigid office structures and prioritise policies that empower employees to work in ways that best suit them.

2 – A total of 25% of employees with poor wellbeing say they need better mental health support.

The stigma surrounding mental health in the workplace is decreasing, but many employees still struggle to access professional support. Businesses that offer Employee Assistance Programmes (EAPs), mental health days and access to digital therapy services can help reduce stress, improve focus and prevent burnout.

Brett Hill, Head of Health & Protection at Broadstone, a UK consultancy for employers, insurance and pension scheme trustees, stresses the importance of employer-led mental health initiatives: “Nobody else is going to step in and tackle this challenge on behalf of employers. The traditional public healthcare safety net that kept the workforce healthy for the benefit of UK employers has gone; it’s not coming back in the near term, so employers have to step into that healthcare gap.”

3 – There are generational differences in workplace happiness and priorities.

The oldest and youngest employees, the under-35s and over-55s, report being the happiest at work. The youngest employees need connection the most, with 18% prioritising social connections, compared to 7% of those over 45. Additionally, 59% of those under 35 cite financial wellness as a priority for 2025, compared to 44% of respondents aged 55 and older.

How businesses can turn wellbeing into a cost-saving strategy

Preventative health measures reduce long-term costs

Employers who focus on early intervention strategies are more likely to see sustained cost reductions over time. Early health screenings, wellness programmes and proactive healthcare benefits can all help employees manage potential health risks before they escalate, reducing medical insurance claims, preventing prolonged absences and ultimately increasing productivity.

“Any investment in wellbeing now has to be an investment with a purpose,” explains Broadstone’s Brett Hill. “Data and proof of value are going to be the king and queen of decision-making when it comes to wellbeing initiatives in 2025. In an environment where discretionary spending on employee benefits is under huge pressure, wellbeing programmes will have to justify their costs.”

Proactive mental health support improves retention and engagement

Providing mental health support is not just a perk; it is an essential component of a healthy workplace. Companies that offer Employee Assistance Programmes (EAPs), mental health awareness training and stress risk assessments see improved employee engagement and retention. Stress and burnout are major contributors to absenteeism and turnover, leading to increased hiring costs and lost institutional knowledge.

Gamification and engagement-based models drive behavioural change

Traditional wellness initiatives often struggle with low engagement, but gamification can motivate employees in a sustainable way. Platforms such as YuLife’s employee app use rewards, challenges and interactive features to encourage employees to adopt healthier behaviours.

“Engagement is key to the success of wellbeing initiatives,” explains Hill. “Many programmes fail because they generate short-term interest but don’t sustain behaviour changes over time.”

Why the time to act is now

Poor workplace wellbeing is a financial risk that businesses cannot afford to ignore. “Employees today expect their employer to take an active role in their wellbeing,” claims Hill. “Before the pandemic, most people didn’t see their employer as responsible for their health. That has completely changed, and companies that don’t step up risk losing talent.”

“Workplace wellbeing is a business-critical investment,” concludes Rubin, YuLife’s founder and CEO. “It’s the foundation of thriving businesses. When organisations truly invest in their people, they create cultures where both individuals and businesses can flourish.”

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Download the YuLife What Employees Want: Workplace Wellbeing Trends in 2025 report today to explore the full findings and discover how businesses can build a healthier, more engaged workforce.