Transforming Employee Benefits: New Research Unveils Top Benefits & Wellbeing Trends in UK Legal Sector.

Howden Employee Benefits & Wellbeing, in partnership with People in Law, has published new research into how the employee benefits and wellbeing landscape is evolving within the UK legal sector to address key recruitment and HR challenges. The comprehensive study includes insights from prominent UK law firms, reflecting a range of firm sizes.

Wellbeing and Mental Health at the Forefront

The report highlights a shift in the legal sector, with mental health and wellbeing taking centre stage. The survey identified heightened anxiety among employees, mainly linked to concerns about long working hours and heavy workloads. Notably, 84% of surveyed firms either have an established wellbeing strategy or plan to implement one within the next 12 months.

Diverse wellbeing challenges emerged for distinct age groups, with employees managing caring responsibilities struggling to balance home and work life. Younger employees expressed anxiety about mentoring opportunities and a perceived lack of peer support, with 30% more likely to be concerned about career progression.

For firms without a wellbeing strategy, financial education and wellbeing initiatives are key priorities, especially given the ongoing impact of the cost of living. A noteworthy 51% of firms with a defined wellbeing budget emphasise their commitment to employee wellbeing.

HR and Employment Benefit Challenges

Attracting and retaining talent is a top concern across the sector, particularly for firms with fewer than 250 staff.

Large firms, with over 250 employees, are prioritising reviewing their benefits strategy, while smaller firms are primarily focused on managing the cost of benefits.

Cost of Living Support

94% of firms have already implemented or intend to take action to support employees with the cost of living. Additionally, 82% anticipate a high impact of the cost of living on their benefits strategies in 2023, with 66% planning to offer financial wellbeing and education programmes.

Adaptive Working Practices

There has been a major shift in working practices, with 93% of law firms offering hybrid working arrangements, and 7% embracing fully flexible work options. None of the surveyed firms mandate a five-day office presence, reflecting a substantial transformation in the sector.

Benefits Communication and Technology

The use of benefits technology is on the rise, with 56% using wellbeing apps and 43% offering benefits platforms, though 26% do not employ any benefits technology. As firms focus on increasing employee engagement and enhancing workplace communication, more employers are expected to adopt benefits technology.

Looking to the Future

A notable 62% of firms plan to make changes to their policies and benefits within the next 12 months. Family-friendly policies are gaining popularity, with 63% either implementing changes to parental leave policies or planning to do so. Despite 28% citing gender-specific healthcare as a top-five HR challenge, 65% are making or planning to make changes to their menopause policies.

The report concludes by highlighting that most legal firms offer comprehensive benefits packages, including life assurance (96%), PMI (94%), and income protection (87%). The report emphasizes that this level of coverage ensures strong protection for employees but also suggests that differentiation among the largest London-based firms lies in the level of benefits offered to each employee.

James Clowser, Client Director at Howden Employee Benefits & Wellbeing, commented, “The report highlights that employee wellbeing remains a key priority. Firms face the challenge of supporting employees not only with mental health but also with financial wellbeing to support them through the ongoing cost of living crisis. It’s positive to see that many firms now have a wellbeing strategy in place. Ensuring that this is regularly reviewed so that it continues to meet the evolving needs of employees is vital.’’

‘’There has been a notable shift in workplace dynamics, with over half of firms adopting hybrid working and responding to the need for greater flexibility. We expect that emerging concerns like Diversity, Equity, and Inclusion, and the need for more equitable benefits in the sector will continue to drive change in benefit design and reward packages’’.

‘’As the war for top talent continues, employees’ expectations have changed. Benefits and wellbeing offerings are playing a bigger role than ever before, so we urge firms to review their offerings, ensuring relevance and value for money in this fiercely competitive sector."

Fiona Wilson, Membership Director at People in Law said: “We know from conversations with People in Law members that the HR, Benefits and wellbeing landscape has significantly changed since the pandemic. This is causing law firms of all sizes to consider what they do and the benefits and support they offer employees in order to create inclusive, flexible and attractive workplaces.’’

‘’Wellbeing and a great culture are high on employees’ wish lists when it comes to looking for a place to work, so as firms continue to compete for talent, ensuring that they offer the right reward and benefits package will be a high priority. We’re grateful to all members who participated in this important research and encourage firms to review the findings to benchmark your own offering against others in the sector.’’

The report contains data from 68 UK law firms. The research was carried out in May 2023 and includes respondents from different sized companies and different regions.