The rise of total employee well-being
One of the largest companies in the United States had a curious idea about how to better support its employees: It combined traditional health benefits with an emphasis on financial well-being. As is the case in many firms, employees were encouraged to participate in health-related challenges and activities. The company mirrored that approach by identifying certain financial activities that could contribute to employee wellness.
To boost engagement, the company leveraged the expertise of Principal to design and deliver financial wellness content. Topics included basic budgeting, managing healthcare costs and tackling student loan debt. This type of programming has been proven to have positive effects beyond bigger savings accounts. One recent study, for example, found that nearly three-quarters of employees experiencing financial stress also experience physical symptoms. Thus, by providing financial education support, businesses can help improve employee well-being overall.
Over 50 percent of employees with access to wellness programs report improved productivity.
“Healthier employees can spend more time not only focusing on their work but also just enjoying their daily lives,” said Joleen Workman, vice president of customer care for Principal.
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The Principal client had foresight but has become less of an outlier. More businesses now opt for an innovative integrated wellness program that blends physical and mental health benefits and policies with financial education support. Often termed “total employee well-being,” the approach not only helps employees thrive but also boosts outcomes for the businesses that implement it.
“Healthier employees can spend more time not only focusing on their work but also just enjoying their daily lives.”
Advancing a more holistic
approach to employee wellness
Financial wellness strategies became more popular over the past year as the pandemic spurred many business leaders to broaden their concept of employee wellness. There’s greater recognition of how mental and physical well-being, health and wealth and our work and home lives all are more interrelated.
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“Wellness at work initially focused on physical health—think of company fitness centers,” Workman said. “Because of our expertise, Principal was one of the early adopters that brought more attention to financial wellness. And now the pandemic has emphasized the need to support employees’ mental well-being. Our research shows a clear desire among businesses to extend that support.”
67 percent of small businesses have a health
and wellness plan in place.
This emphasis on total well-being can help employers better support their staff. An employee with a medical crisis, for example, may then struggle to afford high healthcare costs, which in turn triggers mental stress.
Focusing on this interplay not only helps individual employees but also supports a company’s overall output. An employee dealing with anxiety and depression might not be able to maintain their typical workload. Conversely, an employee with physical, financial and mental support may be able to improve their work performance. According to a recent survey, over half of employees with access to wellness programs report improved productivity.
“Challenges and stress in our lives can’t always be neatly compartmentalized, and an effective support network of employee benefits will reflect that.”
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“Challenges and stress in our lives can’t always be neatly compartmentalized, and an effective support network of employee benefits will reflect that,” said Workman.
Listen closely and let employees help guide you
Employers of all sizes are taking total well-being seriously. Health and wellness solutions rank as the No. 2 priority for small businesses, with 67 percent having a plan in place, according to a 2021 Principal survey. Another survey found that 81 percent of large businesses offering health benefits also offer some form of wellness or health promotion program.
Yet having an employee wellness plan doesn’t necessarily mean that plan is effective. In the wake of the pandemic, businesses need to think more strategically about integrating policies that truly meet employee needs, rather than just tacking on extraneous benefits. For example, more than one-third of businesses started providing more flexibility to improve work-life balance in 2020, finds Principal.
“It’s more important than ever to listen to employees and their individual needs,” said Workman. “‘Flexibility’ is far more than a buzzword.”
81 percent of large businesses offering health benefits also offer some form of wellness or health promotion program.
Employees also increasingly want access to technology and tools that support flexible work. And as Principal has experienced, technology can go a long way toward driving engagement with employee wellness initiatives. Webinars on topics like diversity and inclusion have seen record attendance and engagement.
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On the benefits side, employers listening to their workforces also often find a need to provide mental health support and financial solutions, especially given the multifaceted toll of the pandemic. An employee assistance program (EAP) offers convenient phone or online counseling and helps tackle multiple issues at once. One of the top reasons employees use an EAP is to handle financial stress, demonstrating how mental health and financial health can be two sides of the same coin.
“As a business, it’s time to reevaluate whether your benefits match what your employees say they need.”
Total employee well-being is a more comprehensive approach with a cohesive set of offerings; it addresses a myriad of employee needs and concerns, while helping the company attract and retain the talent needed to be successful.
“As a business, it’s time to reevaluate whether your benefits match what your employees say they need,” Workman said. “You have more resources available today to respond to those needs and manage a happier and healthier workforce.”