Integrating Benefits for Employees’ Overall Well-Being

“Beyond basic insurance coverage, employees want support for their holistic well-being, encompassing physical, mental and financial health, as well as promoting a healthy work-life balance,” says Rich Cordova, senior vice president of retirement services and practice leader at Marsh McLennan Agency. How can employers meet the needs of employees and attract and retain important staff? PLANSPONSOR spoke with Cordova about establishing integrated health and wellness benefits.

PLANSPONSOR: Other than insurance, what are employees looking for in their employer-provided health and financial benefits?

Cordova: Employees are increasingly seeking comprehensive well-being initiatives from their employer-provided benefits. A recent report published by Marsh McLennan Agency titled “The Evolving Workforce” cited the top four priorities over all generations in the workforce: flexible work schedule, mental health benefits, health wellness programs and financial wellness programs.

Employees value programs promoting financial wellness, including access to financial literacy resources, retirement planning assistance and support for managing debt and saving for the future.

PS: What does “integrated health and wealth benefits” mean?

Cordova: In the past, the industry has often viewed health and wealth as separate entities, but there is a correlation between the two. Integrated health and wealth benefits, also referred to as the “convergence,” refers to the coming together of health and wealth benefits to form a new holistic culture of well-being in the workplace.

PS: Please give an example of an integrated benefits program.

Cordova: An integrated benefits program is one that encompasses various components tailored to meet the diverse needs of employees. For example, it could have components of health and wellness; flexible work arrangements; and financial well-being.

For health and wellness, in addition to comprehensive health insurance coverage—including medical, dental and vision plans—the employer might also offer gym memberships, nutrition counseling and mental health resources. On-site health screenings and flu vaccinations could be provided periodically.

Recognizing the importance of work-life balance, the employer could offer telecommuting options, flexible hours and compressed workweeks. This flexibility would enable employees to better manage their personal and professional responsibilities.

Finally, the employer could provide financial wellness programs designed to help employees manage their finances effectively. This may include retirement planning workshops, access to one-on-one coaching and educational resources on budgeting, investing and debt management.

By integrating these components into a cohesive benefits program, employers can create a supportive and inclusive work environment where employees feel valued, engaged and motivated to contribute their best work. This holistic approach enhances employee satisfaction and retention while fostering a positive company culture and driving business success.

PS: How does an integrated health and wealth offering benefit employees?

Cordova: It benefits employees by addressing both physical health and financial stability, leading to increased satisfaction, reduced stress and improved overall quality of life.

By providing financial wellness programs and resources, employees can better manage their finances and plan for the future, alleviating financial stress. Reduced stress related to health and financial concerns can lead to increased job satisfaction and productivity. The MMA report “Thriving Together: Navigating the intersection of employee health and financial well-being” cited that financially stressed employees are nearly five times as likely to admit personal finance issues are a distraction to their work.

PS: How does an employer get started implementing an integrated benefits program?

Cordova: It involves a thoughtful and phased approach that aligns with a workforce’s unique culture. Performing a comprehensive needs assessment, establishing clear communication channels and collaborating with a full-service, comprehensive benefit and retirement services brokerage firm can help employers ensure they’re set up for success.

In an era of rising health care costs and inadequate retirement savings, employers should partner with advisers who can help design benefits programs that assist employees in making informed decisions and drive better outcomes.

The biggest challenge in implementing any program or initiative is budget allocation. Employers should realize they will see a return on investment from benefit offerings to improve overall well-being. For example, research from Calm Business suggests that for every $1 invested in employees’ mental health, employers can save $2 to $4 on other expenses such as health care costs.

PS: Do you see the integration of health and wealth benefits as a trend that more employers will adopt in the future?

Cordova: Yes, it is a trend that more employers are likely to adopt in the future. As cited in MMA’s “The Evolving Workforce” report, two-thirds of employers currently describe health and well-being strategy as an integral part of their overall workforce policy. MMA also noted that 78% of employees now feel that their employer is responsible for helping them become “net better off,” up from 67% pre-pandemic.

The crucial question is which industry player will pioneer the creation of a unified benefits experience? Who will successfully orchestrate the merging of traditional benefits like retirement, medical, disability and life insurance, with a rising number of new options such as financial planning, behavioral and mental health support, childcare and more?