Why Improvement In Employee Well-Being Requires A Perspective Change Around Benefits

The shift in employee leverage post-COVID-19: Embracing comprehensive benefits

In the years following the onset of COVID-19, the global workforce has seen a shift in leverage from employer to employee. Workforce trends such as The Great Resignation and Quiet Quitting have shown that employees are no longer willing to work for organizations that aren’t providing a workplace environment and culture that suits their needs. From 4-day work weeks to increased attention and budget put towards creative employee benefits, business leaders in both Fortune 500 companies and small businesses are working hard to cultivate a workplace that attracts and retains top talent. The future of employee well-being is one of personalized and high-impact benefit packages that back up company statements about “being a family” with material and digital resources. From caregiving benefits that help the “sandwich generation” to avoid burnout to mental health benefits targeted at attracting Gen Z graduates entering the workforce, the future of employee well-being is guaranteed to include more than just a handout describing how to set up your healthcare plan.

Comprehensive Employee Benefits Are No Longer a “Nice to Have”

While many factors make up any individual’s reason for seeking a promotion, a new role within the company, or employment elsewhere, the way people approach work has been continually changing over the past few years. As return-to-work mandates rolled in a year ago, the trend of “coffee badging” popped up, showing that employees who are unhappy with these sorts of orders are willing to do something about it. In the wake of the Great Resignation, employees have started to leverage their position in a demand-heavy recruiting market and seek out better opportunities that match their wants. 

Last year, 57% of survey respondents seeking a job answered benefits as the top priority in their search. In that same survey, only 20% said they’re happy with their current benefits package, meaning the status quo across employers is not good enough, and it’s a massive opportunity to draw in talent. While larger companies have traditionally had the bankroll to offer a larger benefits package, surveys coming out of the pandemic have indicated small and medium-sized companies are increasingly devoting budgets toward benefits. Their employees also struggle to mitigate issues around financial and mental wellness, both of which can be aided through existing employee benefits. 

How the Future of Employee Well-Being Can Also Drive Business Growth

The answer is yes, but the path to get there isn’t necessarily clear for both employees and employers. Even as businesses attempt to join the latest workforce trends, such as “bringing your whole self to work,” not everyone is on the same page as to what this exactly means and how to do it right. It’s easy to ask employees to be their authentic selves in the workplace until that ask involves distractions from parental or caregiving responsibilities and external stressors around financial, mental, and physical health. While the sentiment around this approach to employee presence in the workplace seems nice, in reality, it will likely make a minimal impact on employee well-being. 

So, what types of benefits can help employees, and how do they help the business? Given the digitalization of benefits, there are several ways to approach adding tools and resources that help both parties. Here are a few examples of areas where employees are currently struggling and the type of benefit that can improve their well-being as well as the company’s.
 

• 57% of employees today are pursuing training outside of work, incurring additional financial burden to employees. Dedicating resources to employee training and business-facing technology that allow employees to work through upskilling courses at their own pace improves the skill base of your entire organization and can save your employees money.

 

• Issues that arise in the workplace caused by employees’ financial stress cost businesses roughly $3,000 annually per employee. For 77% of workers, programs centered around financial wellness are important, and by offering both material resources and paid-for access to financial health management applications, businesses can benefit from retention and improved productivity.

 

• According to Microsoft’s 2023 Work Trend Index Annual Report, “68% of people say they don’t have enough uninterrupted focus time during the workday”. While most businesses will focus their efforts on rectifying this issue internally, it’s worth considering what external factors may also contribute to this feeling. For example, the 38 million caregivers in the U.S., on average, provide 18 hours per week caring for their family or loved one, and not all outside of work hours. By giving employees a chance to be transparent about what external responsibilities may be a necessary distraction during the workday, business leaders will better understand if applications that aid with parenting or caregiving responsibilities are the right choice for their organization. 

From Handouts to Actionable Tools, How Technology’s Role in Benefits Is Changing

The earliest versions of employee benefit marketplaces were essentially website aggregators, helping employers provide a centralized knowledge base for things such as health benefit onboarding and internal resources. Today, with the help of application programming interface or API integrations and more digitized benefits, these platforms have become centralized hubs for employees to take action on the benefits packages offered to them. With this shift, employers must consider how to optimize the benefits offered to increase utilization and effectiveness and ensure their employees are aware of the suite of benefits available to them and those that may help them the most. 

In Bank of America’s 2024 Workplace Benefits Report, 81% of employers surveyed said they offered support specifically for caregivers, a population that makes up a sizable portion of the workforce today. However, 61% of employees were not aware of the support offered, an impactful gap between benefit deployment and utilization. For those looking to boost employee well-being through a change in employee benefits, it’s important to prioritize communication and training for both new hires and existing employees on the benefits available and how to access them as they come online.

While the exact benefits employers will offer over the next year or decade will change, what likely won’t is the employee mindset around benefits. As benefits remain a high priority in employees' search for employment, businesses of all sizes across all industries need to continually focus on their employee base’s satisfaction with the current offering. Comprehensive benefits beyond healthcare are no longer something special a few employers offer to entice employees - they’re a significant aspect of the employee experience and something that no business can overlook. Thankfully, given the digitalization of business, the number of benefits that can be offered across healthcare, financial planning, and even parental benefits is nearly endless. 

Rick Anderson is the Chief Operating Officer and Chief People Officer for SupportPay.