Employers Enhance Well-Being Benefits for a Post-Pandemic Workforce

Employers are revising their employee well-being programs to address the aftereffects of the COVID-19 pandemic and to focus more on the needs of diverse workforces, new research shows.

Benefits getting a second look include programs that support mental and emotional health, work/life balance, and financial health, according to the 12th Annual Employer-Sponsored Health & Well-Being Survey from Fidelity Investments, a benefits provider, and the nonprofit Business Group on Health. The January 2021 survey received responses from 166 large and midsize U.S. national and multinational companies.

The events of the past year created opportunities for employers "to address the unique challenges created by the pandemic," said Shams Talib, head of Fidelity's workplace consulting division. "As we gradually return to a pre-pandemic work environment, employers will continue to try new and different things" to help employees resolve personal and family challenges.

Noted Ellen Kelsay, president and CEO of Business Group on Health, an association of large employers: "As employers around the globe continue to ramp up their well-being offerings, we will see a healthier and more engaged workforce." She expects businesses "to demonstrate flexibility and support employee needs through leave, hybrid work and other benefits."

Expanding Well-Being Offerings

For 2021, the survey found developments in these areas:

• Mental health and emotional well-being. Ninety-two percent of respondents expanded their support for programs addressing issues such as stress management, sleep improvement and resiliency, as well as supporting mental health programs for dependent children.

• Work/life balance. Nearly three-quarters (74 percent) of employers increased work/life opportunities, with 69 percent adding new leave options or expanding their leave benefits during the pandemic. Many employers also are examining their parental leave policies, including time off for adopting a child.

• Caregiving. Sixty-four percent enhanced child care support; 55 percent provided new paid time off (PTO) to care for a child or other family member, and 48 percent provided backup child care support.

• Financial well-being. Eighty-three percent have or will provide programs to support emergency savings, debt management and budgeting, while another 77 percent will offer resources to support key financial decisions such as mortgages, wills and income protection.

Well-Being Budgets

Big companies continue to expand their investment in corporate well-being programs, with the total budget for these programs reaching an average of $6 million in 2021, up from the average budget of $4.9 million reported in 2020. Among large employers (20,000-plus employees) the average budget earmarked for well-being programs increased to $10.5 million.

Average spending per employee increased to $238 in 2021, slightly higher than the $230 per employee in 2020.

While financial incentives continue to play a role in encouraging employees to participate in well-being activities, the percentage of employers offering a financial incentive dropped to 68 percent, down from 78 percent in 2020, the survey found. The median per-employee incentive held steady at $600 in 2021.

DE&I Issues

Of the 80 percent of employers that report diversity, equity and inclusion (DE&I) as influencing their well-being strategy this year, nearly half (45 percent) designed initiatives specifically for traditionally marginalized employees, while 78 percent used direct employee input, such as from surveys and employee resource groups, to help bolster such efforts.

Almost half (49 percent) indicate that they audit employee benefits and well-being initiatives to assess inclusivity, and another 39 percent have created DE&I standards for vendors and suppliers.

Small Businesses Get on Board

While the Fidelity/Business Group on Health survey focused on larger companies, a survey by HR services and payroll firm Paychex found mental health challenges are affecting productivity, retention and overall business success at small and midsize companies.

The survey was conducted at the end of 2020 among 250 principals (owners, founders, CEOs) and 250 employees at U.S. companies with two to 99 employees.

According to the firm's 2021 State of Mental Health in the Workplace Report, employees at smaller workplaces plan to prioritize well-being support when they look for their next job:

• 66 percent of employees felt better about their employer after using a well-being benefit.
• 60 percent said mental health benefits will factor into selection of their next job.

The top benefits employees cited as "very helpful" were:

• Employee-specific professional development plans.
• The option to have a flexible schedule.
• A system for tracking employee progress and goals.
• Health-maintenance programs.
• Programs that offer treatment referrals for mental health issues or substance abuse.

Alison Stevens, director of HR services at Paychex, advised HR leaders to "check with employees on their mental health, whether that is through anonymous surveys or one-on-one meetings," and then put plans in place to address challenges employees are facing. They can do so, Stevens said, by offering well-being benefits such as those listed above.

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