The employment landscape has undergone some drastic changes in the past five years. For many companies, remote or hybrid work arrangements have become permanent; Gen Z is bringing new energy and new ideas; and people are reprioritizing their personal needs, seeking non-traditional ways to improve their professional and personal lives. The changing norms and expectations have forced many employers to rethink employee benefits and well-being.
With workers in diverse locations and spanning multiple generations, companies must adopt a well-rounded approach beyond traditional healthcare, dental, and vision benefits. A comprehensive program of well-being benefits helps attract top talent, reduce turnover, improve employee satisfaction, and boost productivity.
The Pillars of Holistic Well-being
There are four major pillars of holistic well-being: physical, mental, financial, and social. Creating a plan that acknowledges these needs requires creativity and innovative thinking.
Physical Health
The popularity and need for traditional health benefits, such as medical, dental, and vision, means they will continue to be a key part of any employer’s benefit package. People need these types of coverage not only for themselves but also for their family members.
However, there is increasing interest in a more robust physical wellness program that goes beyond traditional insurance plans. Recognizing this demand, some companies have begun offering reimbursements for fitness and gym memberships, home exercise equipment, and virtual fitness classes. Many of these expenses can be covered by a Lifestyle Spending Account (LSA), providing flexibility and cost control for employers.
Preventative care options, such as health checkups and screenings, are also very desirable.
Mental Health
In recent years, the need and desire for mental health benefits have gained considerable traction. The American Psychological Association’s 2022 Work and Well-being Survey shows that 81% of workers would look for employers who support mental health when seeking future job opportunities. Moreover, employers recognize the connection between employee mental health and overall productivity.
With an Employee Assistance Program (EAP), companies can offer mental health resources, like counseling, confidential assessments, and referrals. In addition to an EAP, employers could broaden their offerings through mental health days, access to virtual therapy, and stress management programs. Other ways to support the workforce’s mental health needs are by creating a culture of openness around mental health and encouraging employees to seek help when needed.
If an employer offers a Flexible Spending Account (FSA), Health Savings Account (HSA), or Health Reimbursement Arrangement (HRA), employees can use these tax-advantaged benefits to pay for many psychiatric and psychological services.
Financial Well-being
According to a recent survey, nearly half of all Americans cite financial concerns as a significant cause of mental stress. Paying off student loans, mortgages, and credit card debt weigh heavily on individuals and families. Due to rising financial stress among workers, employers are turning to financial wellness programs as part of a holistic benefits package.
Employers have many options available to add to their benefit plans. Educational resources include financial literacy webinars, debt management workshops, and retirement planning assistance; there are also financial counseling services. Financial resources such as emergency savings accounts and student loan repayment assistance plans can relieve some financial burdens. HSAs provide tax savings on current and future health expenses and long-term, tax-free growth for retirement purposes.
Social Wellness
Social wellness is becoming increasingly important in a progressively virtual world and workplace. With hybrid and remote workers, it’s challenging for employers to create and foster meaningful relationships between teams and individuals.
Employers can break down virtual walls, support learning, and encourage employees to build personal relationships through social wellness programs, such as virtual team-building activities, social events, and peer mentoring programs. Employees who feel connected are more likely to have positive feelings about their work and have higher engagement and productivity.
Building a Well-rounded Well-being Package
Today’s diverse workforce, with multiple generations and a mix of in-person, hybrid, and remote employees, means employers must become creative when building their benefits plans. Older employees may find more value in healthcare and retirement benefits, whereas younger employees may look for flexible work environments and student loan repayment assistance.
Employers should consider all these factors when building a corporate benefits package. Offering variety and flexibility can bridge the gap between the needs of various generations and people with different work arrangements.
A benefits package is only as effective as the company culture that supports it. Offering flexible work hours and PTO can help employees recharge and prioritize a healthy work-life balance, for example, but only as long as the employer supports those policies.
Best Practices for Structuring a Well-being Package
- Offer Flexibility: Employees in hybrid or remote work environments value flexibility more than ever. Flexible benefits (e.g., flexible time off, work-from-home stipends, wellness reimbursements) allow employees to manage their well-being in a way that works best for them.
- Promote Personalization: Some companies offer personalized well-being accounts (such as LSAs) where employees can choose from a variety of benefits (e.g., fitness programs, mental health boosters, financial coaching) based on their individual needs.
- Regular Communication: Communicate regularly about the well-being benefits available to employees. Many employees aren’t aware of all the benefits their employer offers, which can lead to underutilization. Create an easy-to-navigate benefits portal and host webinars or informational sessions to keep employees informed.
Measuring the Impact of Well-being Initiatives
Once you’ve implemented a benefits plan with well-being initiatives, it’s important to determine the performance of these programs.
Running periodic focus groups or surveys can help you get direct feedback from employees on what they are using and what they find most valuable. You may also ask what they think is missing from your plan.
You should also try to track the return on investment (ROI). While challenging, tracking employee engagement, absenteeism, retention rates, and employee feedback can indicate your well-being programs’ success.
Comprehensive Well-being Packages as a Competitive Advantage
Employers are trying to navigate new expectations in an increasingly diverse workplace. The future of employee well-being is moving toward a more personalized, flexible, and comprehensive approach. Companies that adopt holistic well-being strategies will not only be able to attract and retain top talent but also foster a more engaged, productive, and happy workforce.
There is no better time than now to reevaluate your benefits package. Review your current benefits offerings, poll employees to find out what they like and what they don’t, and start making incremental changes to address the full spectrum of employee well-being.
For 40 years, DataPath has been a pivotal force in the employee benefits, financial services, and insurance industries. The company’s flagship DataPath Summit platform offers an integrated solution for managing CDH, HSA, Well-Being, COBRA, and Billing. Through its partnership with Accelergent Growth Solutions, DataPath also offers expert BPO services, automation, outsourced customer service, and award-winning marketing services.
