Wellbeing, Caregiving Programs Fall Short for Most Employees

The unfavorable ratings for the programs come just as most employers say they're needed most.

Less than one-third of employers in a new survey say their wellbeing and caregiving programs meet the needs of employees.

The Willis Towers Watson survey of 494 business -- with a combined 6.4 million workers -- found that a significant minority of employers say their wellbeing (29%) and caregiving (27%) programs have helped employees during the pandemic.

The unfavorable ratings for the programs come just as most employers say they're needed most.

A majority of survey respondents (54%) say that employee stress and burnout are top wellbeing and mental health concerns, exacerbated by the need to provide caregiving for loved ones and done in social isolation.

Another 40% of employers cite higher mental health-related claims as a top challenge.

"The pandemic has taken its toll on employees especially in the areas of emotional and social wellbeing," say Regina Ihrke, senior wellbeing leader at WTW. "In fact, the impact is so great that many employers expect these effects will continue in a post-vaccine environment."

"Therefore, many employers are now acting with urgency as they look to take their wellbeing programs to the next level," Ihrke say. "To achieve this transformation, they will ramp up listening to their employee needs, communication efforts and realignment of benefit programs with a focus on mental health and caregiving."

To address these challenges, 62% of employers say enhancing mental health services and stress/resilience management is a top priority over the next six months, compared with just 47% six months ago.

Twice as many employers report developing a strategy for benefits post-COVID-19 as a top priority over the next six months (33%) compared with six months ago (15%), which Ihrke says signals a shift from crisis management to future planning.

More than two-thirds (68%) cite communicating benefits and wellbeing programs as a top benefits priority over the next six months. Another two-thirds (67%) cite increased caregiving demands as the top driver of employee mental health concerns. Caregiving issues for employees with young and school-age children (56%) and decreased use of paid time off (43%) are the top workforce challenges due to the pandemic.

Modifying Benefits

Many employers have jiggered benefits to address workers' needs.

Half (50%) changed the features of paid time off or vacation/sick day benefits, and 23% changed their annual carryover limits.

"Employers have assessed their caregiving support was not as effective as hoped, and as a result the mental health of their workforce is suffering," says Rachael McCann, senior director at WTW. "Many solutions were short term in nature, which contributed to their ineffectiveness."

"With the stakes so high, employers need a revamped approach to caregiving support that includes a holistic view of benefits, paid time off and flexible work policies," she says.

Prepping for the Vaccine

Employers are looking to increase employees' access to vaccines. Nearly two-thirds (65%) are considering contracting with vendors to provide vaccines. While virtually no employers have vaccine mandates, 45% are planning or considering proof of vaccination as a condition to return to in-person work, and 34% are planning or considering mandating vaccines as a condition of employment.

The survey also found that:

• 67% of employers expect the pandemic to recede enough so they can reach a "new normal" to return to the workplace and bringing to an end pandemic-related policies and programs during the second half of 2021. 26% say they expect that to happen by the first quarter of 2022 or later.
   
• Nearly two in five employees will still be working remotely at the end of 2021, compared with 57% who work remotely now, although that varies by industry.
   
• 61% of employers say their medical and pharmacy benefit costs came in under budget in 2020, and 37% of those report actual costs 8% or more below budget. Despite this, employers remain cautious and are budgeting a 4.2% median increase for 2021 before making plan design changes and 3.0% after plan changes.