Employers see wellbeing as crucial to workforce strategy, study finds

Employers of all sizes know wellbeing is a key part of their workforce strategy, more so now than ever before, according to the 14^th Annual Employer-Sponsored Health & Wellbeing Survey fielded by Fidelity Investments and Business Group on Health.

Despite ongoing economic pressures, many employers say this heightened focus on wellbeing resulted from the physical and mental toll of the pandemic. Many noted that they would maintain or boost their investment in wellbeing programs.

Nine in 10 employers felt that the current economic environment would not lead to a reduction in their investment in wellbeing and 3 in 10 planned to increase their investment. The survey was fielded in December 2022 and January 2023 and includes responses from 184 employers.

This year’s numbers show particular promise for those interested in increasing social cohesion:

• 82% of employers plan to focus on social connectedness (70% in 2022)
• 79% plan to focus on community (67% in 2022)

These dimensions, as well as job satisfaction and others, are expected to increase by up to 20 points in the next two years.

“Employees today are looking to employers for support as they navigate work and life in a post-pandemic world,” said Robert Kennedy, Health and Welfare Practice Leader at Fidelity Workplace Consulting.

“We are so encouraged to see employers around the globe continue to invest in and evolve their wellbeing programs, meeting employees exactly where they are and providing them with much-needed support.”

More growth surrounding incentives is anticipated in the next 3 to 5 years, with 43% of respondents planning to expand their investments. An additional 35% plan to maintain their level of incentive funding through 2026-2028.

New to the benefits scene, lifestyle spending accounts (LSAs) are employer-funded post-tax accounts providing employees with a fixed amount to spend on various wellbeing resources. Eight percent of employers said they would introduce LSAs in 2023, while 35% said they would consider it for 2024.

While most employers plan to maintain their overall wellbeing investments in the next 3 to 5 years, some dimensions of wellbeing will experience varying levels of investment, with employers most likely to expand:

• Mental health (74%)
• Financial wellness/wellbeing (53%)
• Work/life balance (52%)
• Physical health initiatives (50%)

Related: Why the C-Suite is prioritizing workforce wellbeing

“Employers are well-aware of the essential relationship between more sustainable workforces and robust wellbeing strategies,” said Ellen Kelsay, President and CEO of Business Group on Health.

“It’s exciting to watch major employers demonstrate their commitment to employees by growing their wellbeing initiatives. By improving upon their existing offerings, everyone wins.”