Why benefits are the best way to support employee wellbeing
Employee wellbeing has become a major strategic focus for employers in all industries over recent years. Business leaders have recognised and, for the most part, accepted their role in supporting and enhancing all aspects of employee wellbeing, both inside and outside the workplace.
Benefex’s 2023 Wellbeing Report is informed by more than 2,000 interviews with global employers and employees, and a clear message from the research was that organisations are focusing on employee benefits as the vehicle to enhance all aspects of employee wellbeing – financial, physical and emotional wellbeing and mental health.
Across the board, the research revealed an understanding that wellbeing should sit at the heart of every organisation’s people strategy; an output and input of employee experience, engagement and productivity. Indeed, wellbeing is now the number one people-related priority for organisations of all sizes, in all industries.
Growing wellbeing role
The research shows that both employers and employees have come to regard benefits as the most important and effective way for organisations to support and enhance employee wellbeing. More than 90% of employees believe benefits directly affect their wellbeing.
Significantly, the research highlights how employees are increasingly prioritising benefits which directly support all aspects of their wellbeing and, in particular, their financial wellbeing. Among the top 10 most valued benefits are life insurance, health screenings, critical illness insurance, dental insurance, pension contributions, private medical insurance and income protection.
From an employer perspective, 90% of HR and Reward directors believe the benefits an employer offers directly impact employee wellbeing. Indeed, wellbeing is now the principal drive and biggest goal for employee benefits, and its importance will only continue to grow over the next two years.
Top three reasons why employers offer benefits
- To enhance employee wellbeing (66%)
- To retain existing employees / build loyalty (59%)
- To improve productivity / profitability (51%)
More than one-third of HR and Reward leaders state that employees have become more engaged with benefits over the last 12 months, an indication that significant numbers of people are viewing benefits as an important way to manage their financial, physical and emotional wellbeing.
Indeed, employees point to financial wellbeing, protection against illness, and mental health and emotional wellbeing as the most important ways in which they are looking for benefits provision to support them. Significantly, financial wellbeing is now considered the most critical focus for benefits, with 65% of employees viewing it as very important, compared with 53% in 2022.
Wellbeing has become number one
It’s clear that wellbeing is playing an increasingly crucial role in organisations’ ability to attract, retain and reward employees. So, it’s no surprise that investment in wellbeing is set to rise over the next two years.
Despite the economic slowdown and HR budgets coming under ever closer scrutiny, employers continue to invest in their wellbeing provision. In fact, 76% of HR and Reward professionals expect their organisation’s investment in wellbeing to increase over the next 12 months, and more than a quarter (28%) report that investment will rise by more than 20%.
Getting wellbeing right is critical
There is a large, positive correlation between employee wellbeing and performance measures across all industries. From better customer loyalty and higher creativity and innovation, to high shareholder returns, the evidence is inarguable. Indeed, it’s estimated that there’s a return of £5 for every £1 invested in employee mental health.
More HR and Reward leaders are starting to show that investment in wellbeing is helping their organisations to achieve wider corporate priorities through higher engagement, better employee advocacy, and an improved employer brand.
Employee benefits are becoming the place for wellbeing. Where state and traditional support mechanisms are failing, the benefits an employer offers employees have fast become a way to deliver tangible wellbeing support.
Benefex’s 2023 Wellbeing Report explores the challenges of meeting evolving employee expectations and how organisations can meet their HR goals through wellbeing, benefits, strategy and technology. Get your copy here.
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