Key Takeaways
- Rising chronic illness, mental health concerns, stress, and burnout are increasing the need for more impactful employee benefits and wellness programs.
- Competitive employee benefits can support retention and talent acquisition. With many employees dissatisfied with their employee benefits and placing high value on healthcare coverage, a strong benefits package can help employers stand out in a tight labor market.
- Effective employee benefit packages should support physical, mental, financial, and overall well-being, not just traditional healthcare needs.
Employee health challenges are on the rise and reshaping the modern workplace. With chronic illness, mental health issues, and stress and burnout increasing, people are struggling like never before. Companies can’t ignore these trends and need to respond with more impactful employee benefits and wellness strategies.
Providing the support your workforce needs to thrive is good for productivity. It also helps you attract and retain highly-engaged talent. When more than 50% of employees were unhappy with their benefits last year, your plan could be a key differentiator in a tight labor market or employee retention strategy.
Why employee health challenges are evolving
Changing demographics, dietary and lifestyle choices, and an increasing demand for mental health support are contributing to a surge in employee healthcare costs. Remote and hybrid work have added another layer of complexity by blurring boundaries, making balancing work and home life more stressful. Stress and burnout are causing spikes in mental health claims, and an overwhelming 81% of employees said they would be looking for work in companies that support mental wellness.
Generational needs are also changing what employees expect from a good benefits package, with younger workers, especially, wanting mental health support from their employers. A recent McKinsey Health Institute survey found that over a third of Generation Z employees consider mental health resources, along with physical and social health options, when choosing an employer.
When it comes to older workers, age-related health conditions are a concern. By 2050, it is estimated that 30% of the global working population will be over 50 years old. Employee benefits strategies will need to start adapting. Age-related and chronic health conditions, such as heart disease, hypertension, diabetes, and obesity, have significant impacts on employee attendance. Cases of both absenteeism and presenteeism are sabotaging workplace productivity and placing additional stress on team members to fill in the gaps.
Why employers can’t ignore these trends
As growing health issues impact productivity, they also affect profitability by driving up the number of insurance and workers’ compensation claims, thereby inflating premiums. Claims are also becoming more complex, often involving multiple chronic conditions or mental health issues, increasing time spent on employee benefits administration. It’s no wonder that employer healthcare costs are expected to rise by 9% next year, the biggest increase in a decade.
With healthcare costs mounting, employees are increasingly expected to pay more out-of-pocket, and so they recognize the value of a good benefits package. Nearly 90% of respondents to a recent Society for Human Resource Management (SHRM) survey listed healthcare benefits as very or extremely important. To attract and retain top talent, companies need to ensure that their benefits remain competitive and effectively address the evolving healthcare needs of their people.
5 Strategies for designing impactful employee benefits
To help promote workforce health and well-being, the best employee benefits strategies follow these simple guidelines:
1. Stay flexible
No two employees are alike, and their needs can vary widely, so your benefits package should be flexible. It also needs to be tailored to your employee culture and the varied life stages and demographics that characterize your team.
2. Take a holistic approach
Your benefits must consider employee well-being in its entirety, from physical to mental to financial health, and more. It’s not enough to ensure employees are physically healthy, for example, if they are suffering mental stress due to poor financial management skills.
3. Support prevention
Everyone wins if preventive care is supported in your benefits strategy. Make sure health screenings and ongoing wellness programs are part of your offerings. To remove any barriers to care, also ensure that telehealth options are covered.
4. Emphasize mental health
Offer robust and comprehensive mental health resources, such as counseling services, mindfulness training, and employee assistance programs (EAPs). Allow for dedicated mental health days and flexible work schedules to accommodate employees’ needs and improve their well-being.
5. Offer added perks
Adding lifestyle-related benefits and perks, such as nutrition guidance, gym memberships, and financial counseling, can help differentiate your employee benefits package, possibly even tipping the scales in your favor when it comes to company selection.
Actionable steps employers can take
The financial success of an organization has been directly correlated to the well-being of its employees. Healthier, happier workers are more engaged, which can boost your company’s performance and resilience. As challenging health trends emerge, there are actionable steps you can take to align your employee benefits with employee needs.
A good starting point is to review your current plan with an eye to identifying gaps and omissions relating to emerging health trends. Then survey your employees to determine their wishes and requirements, hold feedback sessions, and design a benefits package they would value. Dedicate time and resources to educating your employees and addressing their questions and concerns. Track plan usage and outcomes to gauge ROI and employee satisfaction. Then measure and adjust to ensure your benefits remain competitive.
If this all sounds daunting or too large an ask for your team, HR outsourcing and employee benefits administration specialists can help.
The Bottom Line
Health challenges are growing, but so is the opportunity to separate your company from the pack with exceptional employee support. Companies that invest in meaningful benefits protect their employees. They also enhance productivity and empower workforce and business success.
Learn how AlphaStaffHCM™ can help you design impactful employee benefits and well-being strategies for today’s health challenges.
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FAQs
1. Why should employers rethink their employee benefits strategy?
Employers should rethink their employee benefits package because employee health challenges, healthcare costs, mental health needs, and workforce expectations are evolving, all of which can impact productivity, retention, and profitability.
2. What makes an employee benefits package more impactful?
An impactful employee benefits package is flexible, holistic, prevention-focused, and supportive of mental health. It also offers added perks such as nutrition guidance, gym memberships, telehealth, financial counseling, and wellness programs.
3. How can employers improve their current employee benefits offering?
Employers can improve their employee benefits by reviewing their current plan, identifying gaps, surveying employees, holding feedback sessions, educating employees about available options, and tracking plan usage and satisfaction over time.