Ninety percent of employers increased their support for one or more core employee wellbeing needs, including physical, emotional, career and financial this year, according to a new study.
The focus on emotional wellbeing in the workplace continues its upward trend with more than seven in 10 employers (74%) increasing support in this area in 2023, confirmed from global insurance brokerage, risk management and consulting services firm Gallagher’s 2023 US Physical & Emotional Wellbeing Report.
While prioritisation of wellbeing starts at the top, more meaningful interactions take place at the operational level. In fact, since last year, providing mental health training for managers, leaders or HR increased by five points to 22%. Employers are investing in building morale, addressing these concerns through clinical care and designated time off for mental health. Roughly seven in 10 employers (71%) offer clinical care such as virtual or telephonic mental health counselling, and 25% are allowing time off for mental health and burnout (up from three points in 2022).
PAID TIME OFF FOR WORK-LIFE BALANCE
Nearly all employers (96%) offer paid time off to full-time employees, and more than four in 5 (81%) allow employees to carry over days into future years. The ability to help employees meet their work-life integration needs relies on flexible paid time off policies. But less than half (47%) include separate vacation, sick or personal days and only 5% offer unlimited paid time off.
The future of absence management is evolving as employers accommodate an aging workforce, mental health challenges and changing benefit expectations. As such, employers have developed strategies for administering leaves and disabilities (49%) or expect to do so in the next two years (15%).
Employers are increasingly adapting to align paid leaves with family-focused policies. For example, access to new child or parent bonding paid leave has increased five points from 2022 to 41%. And while just 13% of employers offer paid caregiver leave, of those who offer caregiver leave, the majority provide 11–12 weeks (40%).
MEDICAL BENEFITS
Median health plan premium increases at the most recent renewal were 5%–5.9%, up from 4%–4.9% in 2022, and nearly four in 5 employers (78%) believe a moderate or significant rise in healthcare costs is likely this year. Nevertheless, nearly two in 5 employers (39%) enhanced their medical benefits in 2023, up 6 points from 2022. After base salary and variable compensation, medical benefits received the most attention from employers (39%), up 6 points from 2022. As a result, the use of employee cost sharing and other cost-management tactics is likely to grow.
Coverage for infertility, autism or transgender services and other specialty treatments can show support for ranging employee populations. Though most of these benefits don’t stabilize or lower costs, they often align with preferences that strengthen cultural inclusivity. However, their availability was uneven – autism (53%) and fertility services (46%) are offered by nearly half of employers, voluntary pregnancy termination by one-third (34%) and gender reassignment surgery by one-quarter (25%).
SERVING MULTIPLE & DIVERSE GENERATIONAL NEEDS
Challenges remain in managing specialty drugs (for example, weight loss, gene therapies, biosimilars), and 48% of employers don’t know or don’t use tactics to manage their use and costs. Given the accelerating interest in weight loss drugs specifically, and the high costs associated, employers could quickly absorb expenses that exceed their budget limit and impose other strains on their pharmacy benefit plans.
“Today’s workforces consist of multiple generations and people from a variety of backgrounds, and this requires employers to analyze whether their benefit offerings are addressing a wide range of employee needs,” said William F Ziebell, CEO of Gallagher’s Benefits & HR Consulting Division. “As organisations continue to focus on recruiting and retention as top operational and HR priorities, it’s clear that they’re paying closer attention to important issues, such as flexibility, burnout and inclusive medical coverage.”
It is essential to recruitment, retention and the overall wellbeing of employees to serve diverse needs, according to Ziebell. “As such, employers should determine what approaches to coverage and utilisation will provide the best results for their employee populations, without driving excessive costs.”
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