Employee benefit trends in 2021: Focus on mental health

2020 has been a hard year for everyone, and we can expect employers to step up and offer more well-being support in 2021.

Employers are recognizing the myriad ways poor mental health impacts not only employee productivity but overall employee health and well-being.

The month of December is a time of reflection, where we look back at the events of the past year as well as forward to what we can expect in the year to come. Though no one likely would have predicted the chaos of 2020, from it, we can see a few key themes that will have a long-lasting impact on the nature of work and employee benefits.

One thing we all know: 2020 has been a hard year for everyone, from front-line workers braving the pandemic risks to those furloughed or laid off and struggling to pay the bills, and even those working from home suffering from loneliness. Add to that increased rates of burnout and substance abuse among workers, and we can expect to see the impact of the pandemic on mental health last long after we’ve got the virus under control.

Related: Making mental health a company-wide priority

Employers are recognizing the myriad ways poor mental health impacts not only employee productivity but overall employee health and well-being. In 2021, we can expect to see employers taking a closer look at their mental wellness benefits.

Prioritizing (everyone’s) mental health

This year has forced HR and people teams to be much more cognizant of employee mental health. This will continue into 2021, and hopefully HR teams prioritize their own mental wellness along the way, too. This means HR teams will need to play a more active role in checking in with their people through things like pulse surveys, focus groups, etc. This goes hand in hand with internal development–even after the economy’s mild bounce back, companies have been much more conservative about external hiring. Companies will need to view investment in things like career pathing and L&D as much more prudent given the hard lessons learned this year.

– Jack Altman, CEO of Lattice

“Mental wellness” gets redefined

Mental health is a category that has been slowly expanding over the past several years, but 2020 accelerated the broadening definition of the category. The challenges brought on by COVID-19 highlighted the differences between peoples’ unique experiences and created an urgency among employers to invest in all types of mental wellness offerings–from virtual meditation to fertility support, to more relational offerings like couples therapy. In 2021, this category will continue to become even more holistic and inclusive of all types of needs that contribute to employee happiness.

–Jordan Peace, CEO, Fringe

Greater emphasis on mental health

Like most of the other changes discussed, we were already talking about a greater emphasis on mental health at the start of this year. The mental health aspects of the COVID-19 pandemic have only forced that discussion more to the forefront. We expect to see more companies, both large and small, looking for ways to use their benefits programs to promote good mental health. On top of that, we expect HR departments to actively engage with employees to ensure they get the help they need to maintain their mental health. This could take many forms, ranging from in-house counseling to creating more partnerships with wellness organizations.

–Robert C. Love, president, benefits division at BenefitMall

Year-round well-being

Employers will look to add additional wellbeing resources and promote them through increased employee communications. Rather than limit benefits communications to once a year during enrollment, companies will look to connect with and engage employees all year long. Topics of communication will focus on supporting physical, emotional, financial and social well-being. Organizations will look for new ways to support working parents, including new solutions for child and elder care,

– Betsy Woods Brooks, principal of engagement practice at Buck