Customized benefits strategies can supercharge DEI&B
Providing a benefits package that thoughtfully addresses employee’s needs is an essential component of fostering a sense of inclusion that complements and supercharges DEI&B efforts.
Many organizations prioritize diversity, equity, inclusion and belonging (DEI&B) programs in recognition of the value diverse talent and perspectives bring to the workplace. As many studies have shown, a team that collaboratively leverages diverse viewpoints can foster innovative approaches to business challenges and outpace competition. But many of these organizations have missed a big opportunity by failing to align their benefits packages to their employees from historically underrepresented groups.
The importance of closely coordinating DEI&B initiatives with employee benefits is critical. This alignment supports health equity and health literacy in employees – particularly considering nearly 55% of Americans receive health insurance coverage and additional health benefits from their jobs. For employers, prioritizing the health and wellbeing of their people is more than just a nice gesture—it is a smart business decision that can often result in increased employee utilization and can reduce potential health inequities.
This increased utilization can be especially impactful for lower-wage workers who may have fewer personal resources for health care. Often, employees who avoid or delay care can cause further harm to their own physical or mental health, which can lead to more expensive conditions down the line. Employees that fall ill or have lingering, unaddressed health issues are not going to be able to contribute to their teams in the same capacity. Additionally, these employees are also more likely to feel left out if they are missing extended periods of work.
Employers can avoid this scenario and foster better inclusion with more tailored benefits packages. Data from NFP’s 2023 U.S. Benefits Trend Report speaks to the wide-ranging impact of benefits packages on employee’s overall wellbeing. The report also provides employers with strategies to increase health equity, particularly for their diverse employees through customized benefits. Factors impacting employees’ health and wellbeing at home and work are not mutually exclusive. Accordingly, any solution to improve employee wellbeing must be considered through a holistic lens of life and work integration.
According to the report, employees’ mental health expenditures are causing them financial strain, and their employer-provided benefits aren’t covering enough of these associated costs. Over the past 12 months, roughly half (45%) of American workers reported spending between $500 and $6,000 on mental health services, with nearly one-third (32%) saying they spent more than $1,501. Despite this clear need, 72% of employers do not plan to add additional mental health support to their benefits packages.
With many employers falling short in delivering mental health and wellbeing solutions, there is an opportunity for forward-thinking employers to step up and invest in the wellbeing of their employees across demographics. They can expand services within their current benefits offering to better support employee out-of-pocket spend. Such an investment shows an organization cares and is fully committed to its employees, while the significance of the action has the potential to create a tremendous amount of goodwill.
Beyond mental health, there are other benefits enhancements employers can add to meet the needs of diverse employee populations and reduce health inequities. Family planning and fertility support is a good start. Addressing population health concerns for employees living in geographical areas with limited access to quality care providers is another. Using funding tools like limited scope health care reimbursement accounts will go a long way too.
The most effective approach requires an integrated, non-fragmented strategy that combines HR policies with mental health and wellbeing. This can be supported by value-based medical/Rx designs and data analytics with key performance metrics identified to validate performance.
Related: Helping your client maximize their mental health benefits
Employers can realize better engagement and less attrition with benefits that factor in DEI&B considerations. Workers need to integrate their obligations at work and home in a healthy way. Providing a benefits package that thoughtfully addresses employee’s needs is an essential component of fostering a sense of inclusion that complements and supercharges DEI&B efforts across an organization.
Deb Smolensky is the Global Well-Being and Engagement Practice Leader at NFP, a benefits and insurance broker and consultant.