Healthcare Workers Demand Better Benefits as Employers Lag Behind

The vast majority of UK healthcare workers feel their benefits packages are inadequate but employers in the sector are the least likely to increase investment, a survey suggests. With staff shortages at crisis levels, experts caution that businesses risk losing talent to other industries unless they take action.

New research from employee benefits platform Zest reveals that 87% of healthcare workers want their employers to invest more in benefits. Financial support is a major concern, with 81% of employees calling for better assistance. That’s higher than the UK average of 74%. Yet only 18% of healthcare businesses plan to invest more in benefits this year.

Nearly two-thirds (62%) of healthcare employees believe their benefits package is inadequate — the highest dissatisfaction rate of any sector. Many feel they are not getting value for money, with only 48% saying their benefits package is worth it.

The most sought-after benefit is increased pension contributions (45%), but just 18% of employers provide it. Private medical insurance (PMI) and wellbeing allowances are also priorities, valued by 38% and 30% of employees, respectively.

Retention at Risk

With low pay and high stress already driving healthcare professionals out of the industry, poor benefits could accelerate the exodus. Nearly two-thirds (62%) of employees say they would leave their job for a better benefits package, while 38% would consider switching to a different sector altogether.

Many workers don’t even know what benefits they have. Just 60% say they fully understand their entitlements, compared to 99% of employers who believe staff are well-informed. It suggests a failure in communication and engagement.

Employers are aware that benefits matter, with 94% saying candidates ask about them in interviews. But failing to act on this demand could deepen staffing shortages, especially in the NHS, which is struggling to recruit and retain staff.

What Can Employers Do?

Rather than waiting for staff to leave, healthcare employers need to rethink their benefits strategies now, say workplace professionals. Solutions include:

  • Better financial support: Increased pension contributions, PMI and wellbeing allowances are highly valued but remain underprovided. Employers should prioritise them over perks that go unused.
  • Clearer communication: Many employees are unaware of their benefits, which reduces their impact. Regular updates, benefits fairs and digital platforms can improve knowledge and engagement.
  • Flexible benefits options: Allowing staff to tailor their packages ensures benefits meet individual needs, increasing perceived value.
  • Investment in mental health: The healthcare sector has high rates of stress and burnout. Employers should offer robust mental health support, including counselling services and paid wellness days.

Potentially ‘Catastrophic Consequences’

Zest CEO Matt Russell warned that failure to act could have severe consequences.

“Healthcare professionals are demanding increased financial support from their employer and aren’t afraid to move elsewhere to get it, even if that means switching to another sector,” he said. “Given the existing pressures on the NHS, a talent drain could have catastrophic consequences.”

Russell said “[w]ithout increased investment in benefits packages and an improved understanding of the support employees are calling for, healthcare organisations are at risk of losing out on talent.”

He added that HR executives in the healthcare sector “remain unaware of the apathy many of their employees have when it comes to engaging in their benefits packages. This leads to poor value for money for both employer and employee”.

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