22 Jul 2025

The growing gap between employee needs and employer investment

New data reveals that employees are placing more importance on mental health in the workplace but employer spend is set to fall.

Feeling a bit more stressed at work lately? You’re not alone, and there’s data to back it up.

New findings from the Great Employee Benefits Study (GEBS) 2025: UK Snapshot reveal a growing disconnect between what employees need and what employers are prepared to offer when it comes to mental health support.

And the gap appears to be widening.

75% of employees now prioritise mental health support, up from 71% in 2024.
Employer investment is projected to fall, from 65% to just 45% by 2026.

This mismatch isn’t just a wellbeing issue; it’s a business risk.

As expectations rise, organisations that underinvest may find themselves falling behind on talent retention, engagement, and productivity.

UK employees still don’t feel safe speaking up

Data from Deloitte’s Employee Wellbeing in a Global Workforce report reinforces the challenge:

81% of UK workplaces increased their focus on mental health post-pandemic.
1 in 3 employees still feel mental health support at work is inadequate.
13% feel comfortable discussing mental health issues at work.

So, while awareness and intent are clearly improving, many employers are struggling to turn that into meaningful change.

Policies alone aren’t enough; psychologically safe cultures need to be lived, not just written down.

The financial case: Investment pays off

Beyond the moral imperative, the financial case for prioritising mental health at work is compelling:

Poor mental health costs UK employers between £42 billion and £51 billion per year through absenteeism, presenteeism, and staff turnover, according to Deloitte.
The CCLA Corporate Mental Health Benchmark 2024 highlights a strong return on investment (ROI) from mental health initiatives, estimating £4.70 to £5.30 returned for every £1 spent.

With such clear economic returns, the projected decline in employer investment is surprising, and potentially short-sighted.

Can employers close the gap?

Mental health is becoming a defining issue for workplace culture, employer brand, and long-term performance. The coming year could be a turning point.

Supporting mental health doesn’t always mean big budgets or flashy programmes.

Often, it starts with clear priorities, leadership buy-in, and consistent, human-led action. Organisations now have a real opportunity to put their money where their mouth is. The intention is there, but it’s time to follow through.

Because if the gap between what employees need and what they receive continues to grow, so too will the cost, not just in productivity and retention, but in trust, wellbeing, and the everyday experience of work.