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Employer responsibilities toward their workers have significantly increased. Once charged with offering a fair wage and a safe workplace, companies must now provide comprehensive health and wellness programs that support every aspect of their employees’ health. With the rising costs of healthcare and increasing rates of chronic illness, taking care of the people that make up your organization is both a moral responsibility and a business strategy.
This post discusses the benefits of employee health and wellness programs and shares five steps to build one that’s a roaring success.
An employee health and wellness program is a type of benefit that supports your workers’ physical, emotional, and mental health. Such programs have traditionally been educational or incentive-based, designed to reduce chronic conditions such as obesity, high blood pressure, and high glucose. They’ve also supported specific health concerns like smoking cessation or weight loss.
The latest programs cover a broader definition of wellness, including several pillars of physical and mental health. Along with providing core physical health coverage, these plans offer 24/7 telehealth and mental health helplines, nurses or physicians on-site, and nap or sick rooms to deliver health and well-being support on tap.
Companies can offer their health and wellness programs in several ways, including:
A well-run workplace wellness program is advantageous for employers and employees alike. Some of the top benefits include:
Wellness programs prove to employees that you care about their well-being, both in and out of the workplace. Many companies have corporate values that center around diversity, equity, and inclusion (DEI) or promote themselves as being family-friendly and supporting work-life balance. A wellness program is one way to live out those values and build a positive workplace culture that aligns your benefits with your employer brand.
In today’s competitive marketplace, highlighting your wellness program initiatives is a selling point to potential hires, particularly Millennials and Gen Zers, who strongly value mental health, wellness, and work-life balance. A wellness program supports your employee retention initiatives by increasing engagement and satisfaction. Employees who feel valued by their employer are loyal and more likely to stick around your organization for a long time. Consider these statistics:
Wellness programs create a sense of belonging, making employees feel more satisfied and motivated to do their jobs. Employees who feel their wellness is supported will be more engaged and feel a stronger connection to their company. When employees are empowered to prioritize their wellness, the positive effects on health and mood will spill over into the workplace. Employees can also bond over wellness activities they share in common.
A wellness program may sound good in theory, but positive results are more likely if you follow these tried-and-tested steps to implement yours:
To secure funding and organizational support for your program, your company’s executive leaders must buy into the wellness program. Gain their interest by presenting data that supports how well-run health and wellness initiatives boost recruitment and retention and improve company morale. Your data could include:
Use your research to make recommendations for key changes to your employee wellness benefits program:
Example: A combination of gym attendance data and employee survey results highlights that the free onsite gym membership you offer is useless for remote employees. You use this information to recommend switching to a monthly fitness stipend that allows everyone to care for their wellness in the way that works best for them.
A wellness committee will be the primary driver of your program and responsible for planning and implementation. The committee should include employees from a broad number of teams to reflect your population best and represent their various wants and needs. They’ll also promote the program, communicate key information to employees, and evaluate the program’s effectiveness.
Establish specific target goals before you launch your wellness program to shape what you want to accomplish. You might ask key questions like:
Benepass tip: Design a clear, actionable target using the SMART framework to create goals that are Specific, Measurable, Achievable, Relevant, and Time-Bound. For example, a SMART goal might be: “Introduce a monthly wellness stipend to reduce employee stress levels by 15% in the next six months.” This statement is specific, has a quantifiable measure, and is achievable within six months. It’s connected to the company’s key value of supporting employees’ mental health and helps you track progress.
Employee health and wellness programs are suitable for companies on any budget. Smaller companies can offer low-cost programs by partnering with local gyms and businesses for discounts or organizing lunchtime walking groups. Larger companies may dedicate a budget to bring in speakers, run wellness webinars, or offer more comprehensive benefits like massages and meditation sessions.
To keep healthcare costs under control, your company might prefer to offer benefits with set monthly costs to reduce balance sheet risk. You might set up a Health Reimbursement Arrangement or Lifestyle Spending Account with a fixed allowance for each employee or employee class. Whatever budget you decide, make sure it aligns with the goals and objectives of your wellness program.
As a guide, the Benepass Benchmarking Guide reports that:
Learn more about how companies of all sizes and industries are designing competitive benefits by downloading the complete guide.
Vendor selection is the final piece of the puzzle; it’s essential to choose a provider with the infrastructure and product features that meet your organization’s unique needs. For example, many vendors have a limited marketplace that restricts employees to a small selection of places they can spend their funds.
To build a program that encompasses a wide definition of wellness, ask the vendor:
The last point is important if you need to adjust your benefits quickly to adapt to market changes, a growing headcount, or a shift in your benefits strategy. For example, some employers may want to add new mental health benefits as a form of stress management to support employees with burnout or the impact of company-wide layoffs.
A comprehensive wellness program is vital in improving your workforce’s health and productivity. Workplace wellness programs should include:
Your employees’ health and wellness will directly impact their individual productivity and overall company profits. Since the pandemic, the workforce’s health has been under further pressure. Statista reports that up to 5% of employees have been absent from work in some months due to flu and other health-related absenteeism. Here’s how employee wellness programs can promote better health:
Sometimes, workers don’t take advantage of their employers’ health programs. To encourage employees, companies may offer wellness programs that incentivize employees by offering rewards to those who actively participate.
This can be an effective way to improve employee health and lower the company’s healthcare costs. An alternative is to better communicate your health and wellness benefits to your workers so they know what resources are available and how to access them.
Competition for talent and rising costs remain key areas for employers and their benefits strategy. And within the benefits space, health benefits remain a primary focus. Employee wellness programs have the power to produce a happier and healthier workforce—but only if organizations take the time to carefully budget and plan their programs.
Benepass is a flexible benefits platform ideal for companies that want to manage and administer a variety of pre- and post-tax health and wellness programs for their employees. Book a free Benepass demo today to see our platform in action, or contact sales@getbenepass.com to connect with a benefits specialist.
