The Great Stay became infamous in 2024 when disengaged employees lacked the incentive to change jobs, but this is due to change, with a reported 39% of UK employees considering a new job in the next 12 months. Employers will need to work hard to keep and retain top talent.

The job market is likely to become a tougher place for companies, with 47% of those surveyed by Towergate Employee Benefits stating that they believe it will be harder to recruit talent, and 44% stating they think it will be harder to retain talent in 2025. 

Debra Clark, Head of Wellbeing at Towergate Employee Benefits, says: “Our research shows that recruitment and retention will be big challenges for employers in 2025. A real shake up in the way employers go about this is going to be required this year if employers are to find and retain enthusiastic, experienced and productive talent.”

Health and wellbeing support will be key

Over a third (36%) of employers surveyed said the way in which they support the health and wellbeing of their employees is a key reason people choose to work for them. Similarly, 35% said it is a key reason employees stay with them. Interestingly, 32% state that the health and wellbeing support they offer helps with the recruitment and retention of key demographics of employees, showing the importance of learning to adapt support to match the needs of the particular workforce.

Nearly a quarter (24%) of employers surveyed put their health and wellbeing package at the top of the list of areas that will increase most in importance at their company in terms of the recruitment and retention of talent. This was above support for mental health (20%) and well above support of financial health (12%), physical health (9%), social interaction (9%), and ESG (8%).

However, a significant 16% said the business does not offer enough health and wellbeing support and that this impacts their ability to recruit and retain talent. So this is clearly an area where employers still have work to do.

Benefits must be carefully targeted

To attract new employees, health and wellbeing support must be competitive. This means that employers must do their research and due diligence. Talking to advisers will be a big part of this process. Benefits that will be crucial in recruitment but also in retention must be carefully crafted to match the demographic of the workforce. Employers should consider whether their existing support packages are suitably targeted, with consideration to gender and age, for example, so that the supportive ethos of the company does not just attract employees through the door but also nurtures them to keep them with the business.

Communication is vital

Even the very best health and wellbeing provision will not support the employees or the business if it is not recognised, used and valued. It is crucial, therefore, for employers to look at how they communicate benefits not only at the recruitment stage but also at regular intervals to help with retention. Now is the time for employers to review how they communicate support.

Debra Clark concludes: “Only if health and wellbeing support is comprehensively targeted and communicated will it meet the demands of its role in recruitment and retention. Then it will also achieve so much more in terms of the business as a whole.”  

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