‘Employee Wellness’ Is Forever Changed: What To Expect In 2022

4 wellness trends that will play a critical role in shaping the future of work

 

Wellness, a concept previously referred to in a physical context, went from a growing trend in 2020 to a top priority for employers and HR teams around the globe in 2021. In light of the pandemic, wellness quickly expanded beyond physical health to encompass all aspects of a person’s holistic well-being, addressing their physical, mental, financial, social and cultural needs both within and outside the office.

This expanded focus on holistic employee well-being will be the catalyst for business strategies in 2022 aimed at enhancing the employee experience and attracting and retaining top talent in a hyper-competitive market.

While morale sunk to a new low and employee burnout hit an all-time high, it was the mental and financial stressors of the pandemic – Zoom fatigue, economic hardships, and blurred lines between work and life – that brought the importance of holistic employee wellness to the forefront.

A survey by Ginger revealed that 69% of workers believe the pandemic is the most stressful point in their professional careers, with 52% of employees feeling burned out.

As the workplace reality continued to evolve, with it came new revelations surrounding employee needs. Stress and instability prompted employees to reflect on their priorities; many employees left for new roles or companies better aligned with their values and beliefs, some searched for greener pastures with higher pay and better benefits, and others took a break to focus on different life priorities. This led to the rise of the empowered employee and the phenomenon known as the “Great Resignation.”

Employees now hold the cards. It’s key that employers stay focused on driving the employee experience and supporting the holistic well-being of their people. Here are four wellness trends that will play a critical role in shaping the future of work for generations to come.

To counteract the Great Resignation and high turnover rates, HR leaders must rethink employee wellness by focusing on areas that impact the “whole person,” and offer holistic benefits – physical, mental, financial – that support employees’ and their families' needs.  

As more employees take control of their experiences in the office and at home, a culture of holistic well-being, or lack thereof, will impact their decisions to stay or leave an organization in 2022. And HR leaders agree. BrightPlan’s 2021 Wellness Barometer Survey found that 94% of HR leaders think employers need to improve their benefits packages to provide a more compelling employee experience, with nearly 30% of employees saying they’re more likely to stay with an employer that offers enhanced benefits.

While the Great Resignation and war for talent will likely continue into the next year – and we now face a new Covid variant that could further disrupt the talent pool – those who offer and communicate the value of their benefits and their efforts in supporting holistic wellness to both candidates and employees will come out ahead.

Traditional compensation alone will no longer cut it. Companies will need to get ahead of the future of Total Rewards and support the holistic needs of employees and their families. In other words, employees are likely to prioritize holistic wellness benefits over higher salaries and more perks.

The disproportionate impact financial wellness has on mental, physical and overall health became highly visible during the pandemic.  

Financial stress skyrocketed; 65% of employees reported being more stressed about their finances in 2021, leading to a decline in employee engagement and productivity that cost U.S. businesses $4.7 billion per week.* Moreover, 72% of financially-stressed employees say they would leave for another company that cares more about their financial well-being, reinforcing the importance of financial wellness for retention and business success.

Employees want financial support. Over 80% of employees want guidance from their employers on personal finances beyond retirement, including support for financial planning, investing and money management. Offering financial tools and resources will give companies a competitive advantage.

How employees feel about their workplace speaks volumes about their well-being. Fostering a “culture of care” – a supportive work environment that prioritizes empathy and compassion – can create optimal conditions for inclusivity and belonging to flourish. HR leaders undoubtedly agree, ranking diversity, equity and inclusion (DE&I) as their second-highest priority in the Future Workplace 2021 HR Sentiment Survey.

The office will continue to look more diverse too. Supporting the well-being of all populations, including parents, single-income families, LGBTQ+ and other groups is no longer a nice-to-have initiative, but an innate part of building a healthy and thriving workplace culture. Organizations that significantly advance their DE&I agendas by offering high-value benefits and support structures, such as Employee Resource Groups (ERGs), can better address the needs of all their employees.

Promoting a culture of care, inclusion and belonging will allow employees to step outside their comfort zone; when an employee knows their organization supports their diverse background and abilities, they can innovate freely and drive greater engagement, productivity and business success.

Student loan benefits, childcare assistance and parental leave: These are all benefits that may or may not be pertinent to employees based on their specific situation. Every employee is unique, and your benefits program should reflect that. Customization and personalization will be paramount in meeting the diverse needs of the workforce in 2022.

Customizable aspects include:
 

 

 

Implementing a core benefits program consisting of traditional benefits – such as health insurance, paid time off, and a 401(k) plan – plus an additional menu of benefits that employees can select from based on their specific needs provides employees with a truly tailored experience.

Employee expectations in 2021 set high standards for 2022.

As today’s competitive job market inches toward 2022, trends undoubtedly indicate employee wellness is forever changed. Business success no longer relies only on traditional methods for increasing revenue and performance, such as cutting costs and widening profit margins, but instead depends on the enhanced employee experience and a work environment conditioned for both employees and the business to thrive.

With the proverbial ball in the employees’ court, organizations must embrace holistic employee wellness to meet the needs of today’s new workforce, who are shaping the future of work.

*Assumes there are 94,257,000 knowledge workers in the U.S. with an hourly wage of $35.53. Source: Federal Reserve Economic Dataset. For more information, see the full report.