There is a ‘wellbeing gap’ in many UK organisations, with only a third of HR directors saying wellbeing initiatives are fully integrated into their business and talent strategy.
The research by Aon found an overwhelming majority of HR directors (74 per cent) said wellbeing had increased in importance in recent years — with nine out of 10 (92 per cent) saying their company now had a wellbeing initiative. However just 29 per cent said such initiatives were fully integrated into the business.
Aon identified a clear difference in the UK on this issue, when compared to companies and organisations in other countries. 60 per cent of European respondents, and 63 per cent of global responses said wellbeing had increased in importance — but a higher percentage said that this was now fully integrated across the business. This figure stood at 38 per cent for European organisations and 41 per cent globally.
When asked why the organisation was not prioritising wellbeing, by far the largest reason in the UK was that “leaders have other focuses” at 29 per cent. The next highest reason, at 14 per cent, was that respondents “haven’t thought about it”.
The survey also asked respondents which important business issues could be impacted by wellbeing initiatives. The top three UK answers were ’employee performance and productivity’ (39 per cent), ’employee satisfaction and engagement’ (39 per cent), and ‘loyalty and retention’ (35 per cent).
Aon principal strategic consultant for health solutions Letitia Rowlin says: “A multitude of recent developments, not least the Covid pandemic, has seen wellbeing become a far higher priority in UK organisations as they strive to build a more resilient workforce.
“Decision makers also increasingly see a link between employee wellbeing and productivity, performance and engagement. However, the UK remains behind when it comes to fully integrated strategic choices and funding.
“For instance, when it comes to funding, 24 percent of UK organisations allocate 4 percent or more of their overall company and benefits funding to wellbeing. This is far behind other regions. Among mainland European companies, 33 percent of organisations commit this amount to wellbeing while this is true for 38 percent of global organisations.”
She adds: “The UK also has a fragmented approach to wellbeing, with many organisations implementing wellbeing initiatives, but far fewer using a data-led approach to tackle the specific issues that are unique to their situation. Using data gives clarity and confidence to make better decisions, applies funding in a strategic way and enables measurement of results.”
Aon’s Global Wellbeing Survey shows UK employers’ top three priorities overall, which are ‘attracting or retaining’ talent, ‘employee wellbeing’ and ‘profits and financial margins’. This represents a shift in priorities from 2020, when UK employers reported their top three priorities as ‘meeting financial targets’, ‘evolving market and meeting changing needs’ and ‘meeting customer needs’.
Rowlin adds: “Wellbeing has become a differentiator in the war for talent. Employees and candidates want to see that their employer cares, and employers who support employees’ wellbeing gain in improved productivity and performance.”
Aon conducted the survey of human resources and benefits leaders from more than 1,100 companies across 46 countries and multiple industries between August and November of 2022.
