For years, salary has been viewed as the defining factor in attracting and retaining talent. But a growing body of evidence suggests employers are beginning to recognise that workplace wellbeing may now be just as important — if not more so.
New research from Everywhen has found that 44% of employers believe health and wellbeing support is now the single most important factor in recruiting and retaining employees, narrowly overtaking salary, which was selected by 43%.
The findings echo those of Epassi UK’s recently published Great Employee Benefits Study 2026, which found that 67% of UK employees say they are more likely to commit to their work if their employer prioritises investing in their wellbeing rather than simply increasing their salary.
Together, the studies suggest the conversation around employee value propositions is shifting. Employers are increasingly recognising that while competitive pay remains essential, long-term engagement and retention depend on how well organisations support people’s overall health, wellbeing and quality of working life.
Employers are taking a more strategic view of wellbeing
Everywhen’s research suggests organisations are increasingly using wellbeing as a strategic workforce tool rather than simply an employee benefit.
Nearly four in 10 employers (39%) say their wellbeing support is now a key reason employees stay with the organisation, while a third (34%) believe it helps them recruit and retain specific demographic groups.
Almost one in five employers (19%), however, admit they do not currently provide enough health and wellbeing support and believe this is negatively affecting their ability to attract and retain talent.
Debra Clark, Head of Wellbeing at Everywhen, said she was surprised to see wellbeing ranked ahead of salary.
“We were hoping and expecting that employers would recognise the important role health and wellbeing support plays in recruitment and retention, but even we were surprised that it is seen as more important than salary.”
Employees are becoming more discerning about the benefits they value
The findings also reflect wider changes in what employees expect from workplace benefits.
Alongside Epassi’s research, recent data from Zest — now part of the Epassi Group — found that employees increasingly value benefits that provide tangible support for both their health and financial wellbeing.
According to Zest’s research, the most sought-after workplace benefit is private medical insurance (32%), followed by increased employer pension contributions (28%). Salary sacrifice schemes, wellbeing allowances and employer contributions towards home energy costs each featured among the next most valued benefits.
Taken together, the research points towards a more holistic picture of employee wellbeing. Rather than focusing solely on traditional fitness benefits, employees increasingly value support that helps them access healthcare more quickly, build long-term financial security and manage rising living costs.
SMEs could have the most to gain
Interestingly, Everywhen found that larger organisations place greater emphasis on wellbeing than smaller employers.
More than half (52%) of employers with over 250 employees identified health and wellbeing support as their most important recruitment and retention factor, compared with 39% of smaller organisations. SMEs were slightly more likely to prioritise salary.
This presents an opportunity.
Smaller employers often cannot compete with larger organisations on pay alone, but well-designed wellbeing support may offer a more affordable way to differentiate themselves in an increasingly competitive labour market.
The implications for employers
Taken together, these studies suggest wellbeing is becoming an increasingly important part of an organisation’s employer brand.
For HR, reward and wellbeing leaders, the question is no longer simply whether to invest in employee wellbeing, but whether the support on offer reflects what employees genuinely value.
As expectations continue to evolve, organisations may need to look beyond standalone wellbeing initiatives towards benefits strategies that combine physical health, mental wellbeing and financial security in ways that are meaningful, visible and easy for employees to access.
The organisations that succeed are likely to be those that view wellbeing not simply as a cost, but as an investment in attracting, retaining and enabling people to perform at their best.
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