Major gap found between HR spend & employees’ top priorities
New research shows a significant disparity between what employers believe their workforce needs and the areas that employees themselves identify as most influential for retention and performance.
Budget priorities
The findings come from Inclusively's Q2 report, "HR's 2026 Budget Imperative: Why Employee 'Signals' Must Drive Your HR Investments", which surveyed nearly 1,000 employees across multiple industries and collected more than 1,900 direct submissions regarding workplace needs. The report identifies the most pressing priorities for employees, providing data intended to guide budget planning and workforce strategy for the coming year.
The research revealed that over half of employees (58%) have personally paid for tools or services they wish were provided by their employers. The survey also found a strong correlation between the lack of employer-provided resources and the impact on employee productivity, with 44% of respondents stating that their personal needs have a significant effect on their performance at work.
Key employee needs
Among the areas employees most frequently cited as lacking, flexible work arrangements emerged as the leading concern. A total of 461 queries were submitted on this topic by workers seeking improved work-life balance and greater flexibility in their schedules. Mental health support followed closely, with 324 responses highlighting a demand for resources to address stress, anxiety, and burnout, particularly among creative professionals.
Health and accessibility was another repeated theme, with 229 submissions referencing the need for accommodations related to chronic illnesses, physical health considerations, and support for neurodivergent conditions. In addition, 211 responses focused on the need for caregiver support, covering requests for childcare solutions, family leave, and provisions for employees caring for parents or other family members.
"Too many HR budgets still reflect outdated assumptions about what employees need," said Charlotte Dales, Co-Founder and CEO of Inclusively. "Our research gives leaders detailed insights into the 'why' employees need flexible work, mental health resources, and accommodations. Companies that align next year's investments to these realities will be the ones that win talent, loyalty and engagement in 2026."
Productivity and support
The report found that employees consistently ranked productivity tools and mental health support as the most valuable potential investments from their employers. The data show that the lack of these resources not only contributes to out-of-pocket spending by employees, but can also have a measurable impact on workforce performance.
Charlotte Dales added, "What makes this research particularly valuable is that it goes beyond asking employees how they feel. We asked them what they need. These day-to-day barriers are keeping people from doing their best work. When HR leaders are ready to improve performance, this is where they need to start."
The responses suggest that many workers face daily obstacles that could be addressed through targeted HR investment. The "signals" captured in the report provide detailed input that can be used by employers to refine budget priorities and invest in tools and support that directly contribute to productivity and employee satisfaction.
Data for planning
Inclusively's report aims to inform companies as they conduct their budget planning for 2026. The findings are designed to help Human Resources leaders identify gaps between existing offerings and actual employee needs, with an emphasis on addressing flexible work, mental health resources, health and accessibility accommodations, and support for caregivers.
The research presents a case for organisations to review and adjust their employee benefit and resource provisions in line with demonstrated preferences and requirements, using data to guide decision-making for the year ahead.
