14.08.2025

Why UK Employers Must Rethink Employee Health Benefits

Why UK Employers Must Rethink Employee Health…

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A recent GRiD survey found that around 40% of UK employers are simply informing staff about benefits, rather than actively encouraging them to take up what’s on offer. Communications are often limited to welcome packs (30%), staff handbooks (28%), or intranet notices (20%)—with only modest use of benefit events or adviser support to boost engagement.

Why This Approach Falls Short

Relying solely on passive communication can leave employees unaware—or overwhelmed—when it comes to choosing benefits that add real value.

  • Lack of engagement tools: Employers frequently deploy guides or videos that inform but fail to clarify or simplify decision-making; employees may exit the process more confused.

  • Financial stress: Missing out on benefits—or misallocating resources—can result in hardship. Nearly one-fifth of employees report benefit choices that contributed to financial strain, and over 40% feel they spend too much on healthcare, delaying important life decisions because of it.

The Stakes for Employers and Staff

With NHS waiting lists growing, 73% of UK businesses now acknowledge a heightened responsibility to safeguard employee health. Yet the retention benefits of proactive programmes aren't always prioritised.

Sir Charlie Mayfield’s review of UK workplace health suggested that, due to limited statutory sick pay and weak retention incentives, many employers find it cheaper to replace sick employees than invest in their recovery—a mindset that ultimately undermines workforce stability.

What Employers Can Do: Moving Beyond Information to Impact 1. Create Structured Engagement

Rather than relying on brochures or emails, embed proactive engagement like:

  • Regular benefits open days or webinars with experts

  • Targeted follow-ups with employees who haven’t enrolled

  • Multi-channel reminders via internal comms platforms

2. Use Intelligent Guidance Tools

Decision support systems—especially those leveraging AI—guide employees toward suitable choices based on personal context. Over 90% of workers trust AI tools for benefit guidance, yet such tools remain underutilised.

3. Link Benefits to Wellbeing

Support schemes should directly address mental health, long-term sickness, and preventative care. Countries like the Netherlands, where employers have stronger obligations to support sick employees, see better workforce outcomes.

4. Monitor and Adapt

Track benefit take-up, gather feedback, and iterate. Misalignment between what employers think employees value and what they actually need can cost far more than investing in effective engagement.

Final Takeaways

Employee benefits are no longer a “nice to have” — they’re central to retention, wellbeing, and productivity. But to work, they must be relevant, accessible, and actively promoted.

That’s why WPA works with employers to create tailored employee benefit solutions — from cash plans to full Private Medical Insurance — for the whole workforce. We don’t offer “one size fits all” products; instead, we design and manage packages according to your budget, giving your employees a genuinely valuable workplace benefit.

  • employment
  • Business
  • Employee Retention
  • Health
  • economy

I am a Director of Padcote Healthcare Ltd who are an Appointed Representative of the WPA Healthcare Practice PLC. The Healthcare Practice is a wholly owned subsidiary of WPA, authorised and regulated…

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