A survey from WTW has found companies believe they should be doubling their current spend on employee wellbeing initiatives. In the Emerging Trends in Health Care Delivery survey 2022 71 per cent of organisations admit they are spending less on broader wellbeing benefits than they think they need to.
For some organisations (36 per cent), the potential recession and concerns around inflation as business risks are hindering their progress to invest more into employee wellbeing. While in contrast, for just over a quarter of companies (28 per cent), concerns for employees in light of the cost-of-living crisis has accelerated their focus on wellbeing.
In response, many companies intend to offer broader healthcare benefits for employees. In fact, at least a fifth of organisations are looking to introduce support for neurodiversity, men’s health, reproductive health or support for carers. The majority of employers have raised concerns around burnout (64 per cent) and poor financial wellbeing and its associated health impacts (63 per cent) among employees, which are also the two most prevalent issues and the ones with largest impact on productivity. While about 40 per cent of employers have growing concerns around the wellbeing of employees with caring responsibilities, and the rise in musculoskeletal issues.
Lucie McGrath, wellbeing expert at WTW says “Numerous factors such as a growing focus on our wellbeing in recent years, the backlog of patients waiting for diagnoses and treatment via the NHS, and a desire to achieve greater inclusion and diversity has guided many employers to reassess the value of their health benefits for employees.
“There’s a greater awareness that broader health issues have an impact on employee productivity, and employers understand that it pays to assist their employees on a more personal level,” she adds. “For example, we’re seeing a particular surge in the number of organisations that are offering support around routine pregnancy and childbirth (39 per cent), which historically has only been available via state provisions. There is a growing awareness that employers need to do more to support employees during every life stage and this focus is only likely to increase as pressure on NHS resources continues.”
Financial wellbeing is proving to be an area of concern, as 63 per cent of organisations rank it as a key concern for their employees, but only 33 per cent think they are effective at addressing it. And while many employers feel they provide effective emotional (69 per cent) and physical wellbeing support (66 per cent) to staff, only 38 per cent of employees attribute the support of company services to improving their mental health, and only 37 per cent of staff say their organisations helped them live a healthier lifestyle.
In addition, employers are anticipating significant issues facing the healthcare system. 93 per cent of organisations have growing concerns around the length of NHS waiting lists and 90 per cent of companies think that the late diagnosis of new conditions and delayed treatment of existing conditions will be a serious issue impacting claims costs and benefit premiums.
The increase in the review of benefit strategies is being led by the strong competition for talent (72 per cent of organisations) and a growing focus on Inclusion and Diversity (67 per cent of organisations). While three in five companies say the cost-of-living crisis (62 per cent) and a greater focus on ESG (60 per cent) are playing a part in overhauling benefit strategies.
As a result, 6 in 10 employers are planning or considering offering ESG aligned benefits to their workforce, and half are looking at requiring benefit providers to evidence their ESG policies and credentials.
However, rising costs, limited internal resources and the complexity of change are presenting key challenges in the face of companies being able to deliver on improved benefit strategies.
