Around half of retail and hospitality workers lack comprehensive wellbeing benefits, according to research from Unum.
The insurer’s survey of 2,010 UK SME decision-makers uncovered a growing divide in how these firms supported workforce wellbeing, with provision varying sharply by sector.
IT and telecoms lead the way, with 85% of firms offering comprehensive wellbeing benefits, followed by financial services and health providers at 77%.
In contrast, retail drops to 51%, and hospitality and leisure to just 49%.
But the report warned this divide risked deepening health inequalities, weakening workforce resilience and slowing the pace of economic recovery in the UK.
Wage increases
Two-thirds of hospitality and leisure businesses and 60% of retail firms said increases to the National Minimum Wage and National Living Wage were affecting their ability to invest in employee benefits.
And while 71% of SMEs offered at least one wellbeing initiative, uptake dropped sharply among smaller firms due to time, resource and expertise constraints, creating the risk of a two-tier workforce.
Ahead of next week’s Budget, Unum is urging policymakers to act to avoid the wellbeing divide widening through targeted tax incentives, clearer guidance and stronger support which could unlock vital investment in employee wellbeing across the SME sector.
Mark Till, CEO of Unum UK, (pictured) said: “SMEs are the backbone of the UK economy, employing nearly 17 million people. But our research shows a widening gap in the wellbeing support they are offering their workforces.
“Higher-margin sectors such as professional services are able to invest more, while retail, hospitality and leisure firms are struggling to keep pace – a divide that threatens the UK’s economic resilience.
“Rising costs and economic uncertainty are making it harder for SMEs to prioritise wellbeing, but ill-health is now the biggest driver of economic inactivity.
“If we don’t act soon, millions of workers will be left behind at a time when businesses need to be more competitive – and productive – than ever before.”
