As they move into 2024, American workers are shouldering a variety of stressors—from physical and mental health issues to financial insecurity. More and more employees are looking to their employers for more support. Currently, there’s a 22 percentage-point gap between employers’ perceptions of employee satisfaction and how their employees truly feel.

So, what’s the issue? High healthcare costs and the rising cost of living are partly to blame. Nearly 8 in 10 working Americans are worried that their workplace benefits will cost them more this open enrollment season due to inflation. At the same time, employers are concerned about their own economic situations and are wary of investing yet more dollars in benefits programs and higher salaries.

But the cost of benefits isn’t the only problem. Another common weak spot is that they lack relevance to employees’ unique circumstances—benefits options don’t always align with employees’ most pressing wellness needs, both on and off the job.

At a time when employees continue to quietly quit, and many organizations are struggling to fill openings, it’s vital for employers to ensure their benefits packages include the all-important X-factor: meaningful wellness offerings that keep employees happy and healthy.

What Are Employee Wellness Programs?

Employee wellness programs are structured initiatives designed to improve the overall wellness of employees. 

Understanding the Positive Impact of Employee Wellness Programs

Poor physical, mental, emotional, and financial health affects employees and their behaviors on multiple levels. When employers design employee benefits programs that address these issues head-on, they are rewarded with:

Less absenteeism and presenteeism: A healthier, happier workforce translates into heightened on-the-job productivity. Wellness programs are also linked to a reduction in absenteeism.

Improved recruitment: In a competitive labor market, wellness programs have emerged as a potent differentiator. Comprehensive wellness programs can help companies stand out as desirable employers, giving them a competitive edge in hiring.

Greater employee loyalty: Employees who believe their company cares about them feel valued and supported. This personal connection greatly increases their satisfaction and makes them less likely to seek other job opportunities.

A positive work environment: Well-designed wellness programs build a sense of community among workers. Group meetings, stress management workshops, and health challenges can create stronger bonds among colleagues.

A stronger bottom line: Employees who enjoy good physical and mental health are more likely to feel engaged and productive at work, ultimately boosting a company’s revenues. A Gallup study found that companies with a critical mass of engaged employees generally outperform their competition.

Examples of Employee Wellness Initiatives

If you’re committed to doubling down on employee wellness, here are some initiatives to consider including in your benefits program.

Flexible Shift Scheduling

Giving employees the option of flexible scheduling helps them find a better work-life balance. When employees can adjust their timetables to better accommodate personal and family commitments, it reduces unscheduled absences.

Caregiver Support Resources

These programs provide resources for employees who are caring for children, or elderly or ill dependents. When workers feel they have the necessary time and resources to attend to these caregiving responsibilities, they’ll be less likely to take sick leave.

Stress Reduction Initiatives

Mindfulness programs can help employees better manage stress, both at work and in their personal lives. This reduces the likelihood of stress-related absences.

Financial Wellness Benefits and Education

Understanding the financial stress employees face and its impact on their overall well-being is essential. As a result, more organizations are introducing on-demand pay benefits, individual debt counseling and coaching, and free digital financial literacy tools.

Recent research underscores the importance and relevance of employer-sponsored financial wellness resources: The majority of employees (74%) seek financial guidance when making financial decisions or dealing with crises or life events, and 68% say they use their employer’s financial wellness services such as coaching, workshops or online tools.

Assistance with Other Living Expenses

There are other ways employers can help reduce the cost of living for their workers, for example by offering a health savings account (HSA), daycare subsidies, legal assistance, college fund assistance, or support for paying off student loans.

Measuring Success: Evaluating Wellness Program Effectiveness

Evaluating the ROI of wellness programs is crucial for understanding the impact of your investment in employee well-being. Factors that determine success include:

• Ensuring your benefits address employees’ most important wants and needs
• Promoting awareness via the appropriate internal communication channels
• Ensuring initiatives have buy-in and strong support from senior leaders
• Regularly soliciting feedback and suggestions from employees, for example, through focus groups or anonymous surveys
• Measuring success and ROI through metrics like program participation rates, how much PTO employees take, workers’ compensation claims, and voluntary turnover
• Iteratively tweaking and enhancing benefits in line with these findings and employee feedback

Be Your Employees’ Hero

Correctly planned and executed, employee wellness programs promote employee well-being and satisfaction. Investing in them can greatly reduce healthcare costs, improve retention rates, and boost the financial health of employees and your organization.

Payactiv’s platform and digital wallet serve 4,000+ businesses help level the playing field and restore dignity to millions of workers who struggle with cash flow between paychecks by offering a suite of financial wellness services

Learn how Payactiv’s financial wellness program can inject the X-factor into your company’s benefits package. Get in touch to request a demo.All content provided on Payactiv.com/financial-learning/ is for informational purposes only. Payactiv makes no representations as to the accuracy or completeness of any information on this site or found by following any link from this site. Payactiv will not be liable for any errors or omissions in this information nor for the availability of this information. Payactiv will not be liable for any losses, injuries, or damages from the display or use of this information.