In 2023/2024, disengaged employees are reported in our State of the Sector as the second highest barrier to success, with 32% of employees indicating it as an ongoing issue. What’s more: the wider cost of this decline in employee engagement is astronomical, causing UK businesses to lose around £257 billion each year. So, what’s the culprit of this downward trend in workplace engagement?

Before you rush to invest in more beanbag chairs, healthy office snacks or social mixers, I’m here to tell you the answer lies somewhere far deeper than these surface-level benefits. In fact, research shows that while most workplaces believe they’re promoting top-tier benefits in the office, very few are actually embodying what it truly means to care for your employees and cover the most important facet of employee engagement and retention today: employee wellbeing. 

What if I told you that truly investing in a proper wellbeing programme goes far beyond simply attracting talent and crossing it off your list for legality’s sake? Research from a leading benefits app in the UK has proved taking it a step further and adding gamified wellbeing benefits into the mix has the potential to 3x benefits engagement and drive a 181% ROI on your benefits investment. 

Not to mention, an ERS report that monitored the impact of better health and wellbeing programmes in organisations found that 82% of those surveyed companies saw a significant decline in absenteeism.

Organisational wellbeing has been overlooked for far too long, and now is the time to truly start leveraging the biggest asset in your business: your people. This doesn’t have to mean significant changes or blindly investing in costly perks. We’re going to talk about the simple, data-backed ways you can make employee wellbeing a priority, and how to implement these strategies for success. 

Your monthly social events aren’t cutting it 

While many businesses believe they’re running a people-first business and offer every benefit under the sun to keep their employees happy, very few address the true meaning of workplace wellbeing and how to effectively deliver it to their employees.

That’s why the first thing businesses need to start with is a full assessment of your benefits and approach to wellbeing in the workplace, then measure it up against what your employees actually need. 

Recent studies have shown that while 2/3 of employers (66%) believe their employees “very much” appreciate their benefits, only 21% of employees express that same sentiment. That’s a huge gap, and it’s because employers aren’t communicating enough with their employees. 

The best way to understand what your people care about is simple: ask them.

Use anonymous surveys, one-on-one meetings, focus groups and regular internal reviews to truly understand what’s working and what isn’t. Although what matters most to your employees will depend on your demographic and will be specific to your industry, here are three leading priorities of employees across industries today: 

1. Wellbeing benefits  

The best way to truly understand if there is a sense of wellbeing in the workplace is to ask yourself: Do my employees feel psychologically safe? 

Wellbeing can only be fostered when mental wellbeing is considered just as much as physical wellbeing. It’s key in fighting burnout, presenteeism and has been proven to have an impact on overall wellbeing of an individual. If you’ve been able to craft a culture where people aren’t afraid to speak up, take time off, and create healthy boundaries without fear of punishment, you also won’t have an issue with employees speaking out about what matters most to them. 

This can begin simply by opening regular meetings with mental health check-ins, educating on the matter, and training your managers to host authentic, one-on-one catch-ups that foster a more psychologically safe space. 

2. Competitive financial benefits

More people than you would think are worried about their financial wellbeing and this stress has been shown to negatively impact workplace performance. Part of improving employee engagement is considering physical, mental and financial wellbeing as part of your overall people strategy.

The specific type of financial benefits will vary depending on your demographic, which is why it’s important to research into your unique team’s needs and find what type of financial resources would benefit them the most at their stage in life. This can help to keep them engaged and away from spending their mind space worrying about their finances.

3. Flexibility in the workplace 

Flexibility in the workplace is high on the list of important benefits for employees of all ages. Research done by YouGov and Investors in People (IIP) found that 90% of employees who were offered flexible working opportunities felt it to be the most important influencer of wellbeing at work. 

While the return-to-office movement is clearly visible, you might want to take a step back and re-assess what this does for engagement and overall employee satisfaction. Although it might satisfy the need to have an eye on your employees, flexibility not only makes life more manageable for those with families and responsibilities, but also allows them to feel trusted and respected at work. 

When you look at surveys highlighting the top-rated employee benefits, flexibility is always close to the top of the list. This can be very much role-dependent, with front office positions needing and wanting to be in the office the majority of the time. Flexibility does, of course, have to be balanced, with remote working often cited as a barrier to learning on the job and therefore impacting personal development and career progression longer-term. 

So, how do you make this a success?

Now, you might already offer comprehensive benefits, so what’s going wrong? Oftentimes, the problem lies in the execution of workplace benefits and clear, regular, effective communication.

Gartner reported in their research that 96% of organisations were offering mental wellbeing support but only 42% of employees were actually aware of them. This is a prime example of offering the right type of benefits but using the wrong delivery methods. It’s worth asking yourself: How are you reaching your employees with information surrounding benefits? How are you optimising communication around those benefits? Is it easy for them to regularly engage with those benefits? 

Here are some simple ways to think about this: 

Make them accessible: Mobile apps and technology are becoming increasingly popular amongst insurance and benefits companies, allowing benefits platforms to be easily accessible, and removing any barriers or extra steps to make claims and file paperwork. Opt for a benefits platform that makes your employee’s ability to benefit from their benefits easier, not harder. 

Make them compelling: The story you tell around your benefits is key. Let them know often, let them know with enthusiasm and let them know in detail just how easy it is to take advantage of the resources you’re offering. Many benefits providers are trying to be relatable, simple and more appealing to the eye so that when engaging with their benefits, it’s not a stuffy or mundane experience, but an appealing and attractive one. 

Make them rewarding: A simple method that many insurance and benefits providers are investing in to boost engagement in wellbeing initiatives is gamification, where there are game mechanics built into the benefits platform to drive engagement. Not only are these gamified benefits platforms allowing the employee to engage more with their wellbeing, but they can also provide them with financial rewards and lower insurance premiums as a result. It becomes a win-win scenario for the employee and your insurance costs, not to mention your engagement rates, will also reap the rewards. In fact, implementing game elements at work has been shown to make 87% of employees feel more socially connected.

Next steps

Highly-engaged employees are 57% more effective and 87% less likely to leave an organisation, according to Deloitte’s 2021 Engaging the Workforce Report. If your goal is to boost engagement in 2025, you have to truly understand the impact of employee benefits and wellbeing in the workplace, and that all of these changes begin from the top down. 

Truly caring for your employees value goes beyond monthly free lunches, healthy snacks in the kitchen and the occasional work-from-home days. None of the above matters if your employees aren’t operating in an environment where they feel valued, compensated and psychologically safe. Wellbeing is weaved into the small, mundane and fundamental approaches in your business. How you greet your employees and how you give feedback; if it’s not fostering a positive workplace culture, your engagement is going to suffer as a result. 

So, if you’re going to take away anything from this article, let it be this:

1. Focus on building psychological safety before anything else
2. Invest in a wellbeing programme with benefits people actually want
3. Invest in financial benefits that align with your workforce demographic
4. Offer flexibility—because benefits aren’t a one-size-fits-all solution 

If you can accomplish these four things, you’re on track to a healthier, happier workplace in 2025.