A growing number of UK workers are leaving their jobs due to health issues, putting increased pressure on employers to address wellbeing and retention.
New data from hiring platform Totaljobs reveals that 18% of employers experienced health-related resignations in the past three months, up 29% from the same period last year.
The findings, published in Totaljobs’ latest Hiring Trends Index, come amid a broader workforce health challenge. Figures from the Office for National Statistics show a record 2.8 million people in the UK are now economically inactive due to long-term sickness, revealing a growing health crisis that’s having knock-on effects in workplaces across the country.
Health and Wellbeing Now Central to Workforce Retention
While competition for talent remains tough, the report suggests that employers may be underestimating the extent to which health and wellbeing are driving people out the door. Alongside those leaving for better opportunities (25%) and poor work-life balance (15%), health concerns have become a growing reason for resignations.
Experts say the trend is unlikely to reverse unless businesses take more proactive steps to support staff wellbeing.
“With rising health-related resignations and growing concerns about employee wellbeing, retaining talent should be a top priority for businesses,” said Natalie Matalon, chief people officer at the Stepstone Group, which owns Totaljobs. “There’s no one-size-fits-all approach. Employers must identify the specific drivers behind departures and use employee surveys to understand the rationale.
She said that in cases where benefits like flexibility in work location and hours were not possible, firms could instead look at establishing resource groups as well as wellbeing programmes. “Crucially, offering enhanced sick pay, health insurance and mental health support can help address workers’ concerns while fostering a more resilient workforce,” she said.
What Workers Want: Wellbeing-Focused Benefits Rise Up the Agenda
The report also shows that health-related perks are increasingly in demand. Sick pay above statutory requirements is now one of the most sought-after benefits (26%), followed closely by private health insurance (21%) and mental health support (17%).
Flexible hours remain the top benefit employees want (41%), while other popular options include pension contributions above the legal minimum (25%) and hybrid or remote working (24%).
The findings represent a shift in employee expectations. Experts believe that with long-term illness and burnout on the rise, benefits that directly support physical and mental health are becoming a key differentiator for employers.
Talent Shortages and Rising Hiring Pressures
The uptick in resignations is compounding the difficulties many employers face in recruiting skilled staff. According to Totaljobs, 65% of hiring managers say finding candidates with the right skills remains their biggest challenge, while over half (52%) report time pressure to fill roles. Half also cited concerns about shrinking hiring budgets.
Although the average time to hire has improved slightly — from 5.1 weeks in late 2024 to 4.6 weeks currently — 26% of employers still report a six to ten-week gap between posting a vacancy and getting a signed offer.
Amid these challenges, Matalon urged employers to think long-term: “The skills gap left by departing employees presents an opportunity for internal mobility and career growth. Employers can close talent gaps by bringing in entry-level employees while supporting existing staff through learning and development programmes that upskill the workforce.”
Implications for Workplace Wellbeing Professionals
For wellbeing professionals and HR leaders, health and wellbeing are no longer peripheral issues but are central to workforce planning, engagement and retention. With a significant portion of the workforce either unable or unwilling to remain in roles that damage their health, employers that invest in wellbeing will be best positioned to attract and retain talent.
The sharp year-on-year rise in health-related resignations also suggests that reactive measures are no longer enough. Instead, experts say, proactive strategies — including regular wellbeing assessments, flexible working policies and meaningful benefits packages — are needed to stem the tide.