Almost half of all employees across the globe are feeling stressed in their everyday lives. As a result, employers have an opportunity to mitigate the strain, finds Mercer’s 2023 Health on Demand report.
The new research surveyed over 17,500 employees in 16 markets, finding that nearly 70% of workers believe their employer would support them in a time of need. “Leading employers are tackling the underlying causes of workplace stress as part of a comprehensive and inclusive benefits strategy, such as reviewing job design and supervisor competencies, creating a culture of belonging and inclusive decision making, and offering benefits such as reduced cost mental health treatment and virtual counseling,” the report stated.
Healthcare adds to daily stressors
Aside from work stressors, 21% of employees are concerned about affording healthcare, with women (26%) and single mothers (32%) significantly more likely to lack confidence that they can afford needed healthcare than men (18%), finds Mercer.
Additionally, the research show a positive correlation between higher levels of benefits and employee satisfaction. Nearly three-quarters (72%) of employees who are offered 10 or more benefits say this incentivizes them to stay with their employer. In fact, employers who show care to their employees are likelier to see better recruitment and retention results.
“In recent years, employees’ health and well-being have been put under pressure by multiple crises – ranging from economic and geopolitical conflicts to the global pandemic,” said Hervé Balzano, president, health, Mercer & global leader, Mercer Marsh Benefits, in a statement. “Our research shows how these challenges, along with multiple pressure points facing healthcare systems, have brought to light significant gaps in protection for workforces. This is particularly true among groups such as low-paid workers, caregivers, and women.”
Gen Z redefines workplace benefits
Younger workers are looking to their employers for help on mitigating daily stressors. The Mercer study found Gen Z workers tend to have a different outlook from their older colleagues—they are likelier to stay at their employers due to the benefits they receive (56% for Gen Zers compared to 45% for Gen Xers), they trust their employers to deliver personal health solutions (55% vs. 49%) and they believe their employers care about their health and wellbeing (73% vs. 61%).
The confidence they have in their employers comes from a place of expectation—younger workers are likelier to anticipate, and even demand, holistic and modern benefits from plan sponsors.
In its research, Mercer lists key actions for employers to engage Gen Z workers, including prioritizing benefits such as mental health, women’s health, and preventive care. Additionally, provide access to benefits and tools that support this group’s financial well-being, including access to financial wellness education guidance, and support.
Getting creative with financial support
To lessen daily stressors and strains on their employees, Mercer’s research urges employers, who can, to:
- Consider covering employee-paid contributions for health, risk protection and retirement plans to reduce opt-outs during earnings troughs
- Provide guidance or a means for employees to build an emergency savings plan
- Fund spending accounts to bring certain kinds of purchases (e.g., fitness, solar panels, ergonomic equipment) within reach
- Help people protect themselves financially by offering voluntary home, auto, flood, fire, travel or personal life/disability insurance
- Seek opportunities to offer easily accessible discount programs and education assistance
- Better communicate existing benefits that could help employees with their finances
- Provide more flexible retirement options
Additional findings from Mercer’s “2023 Health on Demand” report can be found here.
SEE ALSO:
- As Inflation Continues, Workers Look for ‘Care’ in Employee Benefits
- Student Debt and Employee Benefits: What Plan Advisors Need to Know
- How a Holistic Employee Benefits Approach Boosts Your Practice
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.
