Overall employee wellbeing is key: Employers answer the call for help
In light of the toll the pandemic has had on physical, mental and financial health of employees, employers are considering offering more wellbeing initiatives, as well as funding HRA and HSA accounts, says a new survey.
Despite current economic pressure, employers do not plan to cut their investments in wellbeing programs, especially in light of the toll the pandemic has had on the physical and mental health of employees.
According to the 14th annual Employer-Sponsored Health & Wellbeing Survey conducted by Fidelity Investments and Business Group on Health, 90% of employers said current economic pressure would not lead to a reduction in their investment in wellbeing, and 31% planned to increase their investment.
Expansion of mental health programs tops the list of wellbeing initiatives employers plan to invest in, followed by financial wellness programs, work/life balance offerings and physical health initiatives.
To encourage employees to participate in wellbeing opportunities, nearly three-quarters (73%) of employers plan to offer financial incentives to reward positive wellbeing actions this year. Most employers plan to deliver incentives using gift cards or cash equivalents. Other popular incentives employers are considering are Health Reimbursement Arrangements and Health Savings Account funding. On average, employers provided an incentive of $716 per employee.
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Employers are also considering a new type of incentive – lifestyle spending accounts (LSAs). These employer-funded, post-tax accounts provide employees with a fixed amount to spend on wellbeing resources. Eight percent of employers introduced LSAs this year, and more than one-third of employers said they would consider doing so in 2024.
Incentives are likely to grow going forward, with 35% of employers saying they will maintain their incentive funding through 2028, and 43% saying they plan to expand their investments.
The survey also revealed that onsite initiatives, many of which were curtailed by the pandemic, are expected to return to pre-COVID numbers in 2024. Sixty-one percent of employers plan to offer onsite yoga or meditation classes, up from 22% last year, and a similar percentage plan to offer onsite fitness classes, up from 25% in 2022. Sixty-two percent plan to offer onsite health fairs, up from 6% in 2022, and 35% plan to offer onsite counseling or therapy, up from 18% last year.
“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, which helps multinational organizations design and manage employee benefits strategies and supporting programs. “The pandemic had a great mental and physical toll on many individuals, and employees are returning to the worksite as different people than they were before.
“By providing access to mental health resources, options for exercise and nutrition information, and a culture of connection and community, employers can help to improve the wellbeing of their employees,” said Kennedy. “Employers are also looking at ways they can support employees across all of these health and wellness endeavors in an integrated way, like implementing a lifestyle spending account.”
Kristen Beckman is a freelance writer based in Colorado. She previously was a writer and editor for ALM’s Retirement Advisor magazine and LifeHealthPro online channel.