Employee wellbeing worth billions to UK plc, as employers rush to offer perks

The economic value of investing in improved employee wellbeing is worth billions to UK plc, or potentially the equivalent of £4,000 to £12,000 per UK employee, research has suggested.

At the same time, the growing number of people out of work because of mental health conditions has prompted a surge in companies promoting wellness perks to new recruits.

The potential value of wellbeing provision – to the economy, individual employers, employees themselves and, of course, occupational health providers – has been highlighted by research by the McKinsey Health Institute for Business in the Community’s (BITC) The Prince’s Responsible Business Network.

The report, Prioritise People, has calculated the UK economic value of improved employee wellbeing could be £130bn to £370bn per year, or between 6% and 17% of the UK GDP. This is the equivalent of £4,000 to £12,000 per UK employee, the study has argued.

Breaking this down, addressing employee attrition could lead to a £12bn to £36bn boost to the economy. Reducing absenteeism could lead to a £4bn boost.

Reducing presenteeism and improving productivity, meanwhile, could lead to a £85bn to £288bn uptick and boosting retention a £15bn to £24bn increase. Increasing attraction (employer brand) could add £13bn to the economy, it argued.

Javier Echave, chief financial officer at Heathrow Airport and chair of BITC’s wellbeing leadership team, said: “Investing in employee wellbeing is not only the right thing to do, but it could also lead to a significant gain for the UK economy.

“Instead of looking at the negatives of poor wellbeing, we wanted to showcase the positives of businesses investing in their people to encourage more leaders to make this a boardroom priority. If business leaders invest in the right initiatives and prioritise their people, they will reap the rewards,” he added.

Separately, research by social media recruitment platform Socially Recruited has argued that, over the past 12 months, job adverts referring to wellness subsidies, budgets or discounts have risen by 310%.

Those mentioning employee counselling services have also doubled (up 95%) in the same period. Examples have included department store Harvey Nichols and food company 2 Sisters, which have advertised counselling services to staff.

Job adverts referring to a four-day week were also up 137%, an indication that employers are seeking to attract scarce candidates by offering better work-life balance, Socially Recruited argued.

Ben Keighley, founder of Socially Recruited, said: “For many Brits, how they perform and are treated at work plays a substantial role in their mental wellbeing. It is vital that provision is in place, not only to support those already in employment, but also to attract the new workers and returnees needed to drive the economy forward.”