Wellbeing overtakes financial security as top workforce concern, study claims

Wellbeing has overtaken financial security as the primary concern for UK employees, according to new research from Mercer, reflecting a shift in workforce priorities after several years of economic and social disruption. The findings come from Mercer’s Inside Employees’ Minds: Building Confidence in a Changed World 2025 to 2026 report, based on responses from more than 4,000 UK workers. While financial pressures remain widespread, concerns around physical, mental and emotional health now dominate. The study found that 32 percent of employees report poor mental health, with higher prevalence among younger workers.

Job security has emerged as the main reason employees stay with their current employer, overtaking pay. At the same time, perceived unfair pay, workload and workplace culture remain among the most common reasons cited for leaving. Mercer’s research also identifies a trend it describes as ‘job hugging’, where employees remain in their roles due to uncertainty in the wider labour market. Although 64 percent of respondents say they are not actively considering leaving their job, Mercer suggests this reflects economic conditions rather than a significantly improved employee experience.

The report highlights growing concern about skills, particularly in relation to artificial intelligence. Many employees say they want to reskill but are uncertain which skills will be most valuable and how to prioritise development. This uncertainty is most pronounced among mid-career workers aged 45 to 54. Only 41 percent of people in this group say they see clear career progression, while 45 percent believe they can achieve their career goals with their current employer.

Despite the increased focus on wellbeing, financial security remains a significant concern, especially for younger employees. The primary concern among those aged 18 to 24 is meeting monthly living expenses, a pressure felt more acutely by this group than any other. Across the workforce as a whole, only 47 percent of employees are confident they have sufficient savings for retirement. Confidence falls to 38 percent among those earning under £25,000 a year.

The research also points to disparities in access to and awareness of employee benefits. Men are more likely than women to have access to private medical insurance and other health-related benefits, and some employees are unaware of what benefits are available to them. Pensions remain the most valued benefit overall, cited by 84 percent of respondents, while younger employees are placing increasing importance on health-related benefits.

Kerry Ghize, UK career leader at Mercer, said the research showed employees were increasingly concerned about health and wellbeing and about the risk of their skills becoming outdated as AI adoption accelerates. She said organisations needed to support employees through clearer career pathways, skills development and a better understanding of changing workforce needs.