The must-have benefits as we emerge from COVID-19

For starters, mental health benefits are now table stakes in a post-COVID era.

The future health of the workforce will be determined, in part, by whether employers adapt or strengthen their benefits package in response to the past year. (Photo: Shutterstock)

In many ways, the global pandemic has brought us closer together. Families, co-workers, and communities are experiencing newfound camaraderie thanks to video calls, chats and meetings that have given us a behind-the-scenes look at how we live.

Related: How to beat Zoom burnout, compassion fatigue

Kara Hoogensen is the senior vice president for Specialty Benefits at Principal Financial Group. During her career at Principal, she has held a variety of leadership roles, including VP for Group Benefits, CEO of Principal Bank and Principal Securities, Inc., and Managing Director at Principal Funds. She holds a BA from Central College along with her Certified Investment Management Analyst® and Certified Employee Benefits Specialist designations.

But for many, the last year has exacerbated societal issues and widened gaps, such as those in learning, wealth and workplace disparities. And as businesses emerge from the impacts of COVID-19, a new and potentially growing gap is emerging—the productivity of businesses—stemming from a collective decline in employee well-being. The future health of the workforce will be, in part, determined by whether employers adapt or strengthen their benefits package in response.

The lingering impacts of COVID-19 in the workplace

A recent study by the Kaiser Family Foundation reported that 45% of Americans feel the COVID-19 crisis is harming their mental health; while 19% feel it’s having a “major impact.” And in a poll from the Pew Research Center, almost three-quarters of Americans reported feeling anxious at least a few days per week since the onset of the pandemic. As a result, more employees are looking to their workplaces to provide benefits that support not only their physical, but also their mental well-being.

The latest research from Principal Financial Group finds that nearly half (47%) of business owners have seen an increase in questions about mental health and well-being resources available to employees, with another 45% seeing an increase in use of these offerings.

Why well-being matters in the workplace

Poor mental health can lead to burnout among employees, impacting their well-being and ability to do their best work. Absenteeism, higher staff turnover, and a lack of employee focus and engagement are just a few of the ways poor well-being can impact profitability.

How employers are responding

The challenges brought on by the pandemic have shifted employee priorities, and we’re seeing employers adjust accordingly. The Society for Human Resource Management reports that many employers are enhancing emotional and mental health benefits. Types of support range from managing stress, treating invisible disabilities such as anxiety and depression, offering Employee Assistance Programs (EAPs), and forming mental health employee resource groups.

Nearly a third (31%) of businesses surveyed by Principal said they plan to increase mental health benefits offerings. Other benefits employers plan to tackle in the next 12 months include telehealth, health care, and paid family and medical leave.

The research also finds that the well-being offerings business leaders find most useful for their workforce are shifting in importance. Financial wellness (43%), an EAP (40%), and access to well-being mobile applications (31%) are among the top services.

Helping employers determine what’s best for their workforce

While some of the ways employers have adapted during the last year will be temporary, many will become more common or even permanent. And as the benefits landscape shifts, employers need the expertise of advisors to help them make well-thought-out choices around what changes to make and when.

They also need input from employees. For business owners, communication is the first, most important step in finding a benefits package that works for employees’ evolving needs. Understanding what stressors are most pressing for employees is key to determining what will be most beneficial for an employer to offer.

Probing beyond the often single-word answer to, “How are you?” and really listening can be a simple way to better understand these stressors. This can lead to recognizing how the workplace can be an avenue for offering support that meets employees where they’re at.

A mentally healthy workforce is good for business

When it comes to well-being, the best programs give employees incentives, tools, and strategies for adopting and maintaining healthy behaviors, leading to increased resilience and stronger employee engagement. Businesses that don’t adapt run the risk of falling behind—both in workforce productivity and the ability to be competitive in recruiting and retaining employees.


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