Andrius Banelis for BI
This article is part of "Workforce Innovation," a series exploring the trends and leaders shaping enterprise transformation.
With a new generation of workers bringing fresh sensibilities and an increasing desire for work-life balance and mental-health support, organizations across the US are scaling up employee well-being programs to meet the demands of the post-pandemic era.
Companies spent $51 billion on employee wellness in 2020, a figure that's projected to rise to $100 billion a decade from now, according to a report last year by Wellable, a corporate healthcare platform. Initiatives range from health plans and perks to employee-resource programs and digital tools. All share a common goal: fostering a healthier, happier, and more productive workforce.
"When employees feel they're being invested in and supported, they're more likely to experience greater job satisfaction and an improved sense of well-being," Charlie Tharpe, a professor at Boston University's Questrom School of Business, said.
Tharpe added that employees who feel supported are likely to put more effort into their work, so "companies with a healthy and engaged workforce can reap substantial benefits."
Companies need to achieve a balanced mix of well-being offerings to address the shifting needs of their workers, Tharpe said. This means tailoring programs and plans that resonate with employees and align with company values and mission, all while maximizing return on investment and yielding measurable benefits such as reduced healthcare costs. Studies suggest that employee well-being is linked to improved engagement and commitment and can also play a key role in attracting and retaining talent and increasing productivity.
A retention tool that reinforces company values
Tharpe said many companies view well-being benefit programs as a strategic tool to reinforce the organization's values and make it more attractive as an employer.
"There's a baseline of benefits that most try to adhere to, if not exceed," he said. "When it comes to additional ones, companies need to ask: What's the composition of our workforce? What would appeal most to our employees? And what's most consistent with our brand?"
Answering these questions requires pragmatism, empathy, and creativity.
Take, for instance, Outdoor Experience Days, an initiative that L.L.Bean, the Maine-based outdoor retailer, first introduced in the 1990s. Back then, the benefit offered salaried, full-time employees three paid days on top of their vacation time to spend outdoors. In 2021, amid the pandemic, when social distancing meant people spent more time socializing outside, the company expanded the program. Part-time and hourly year-round employees — a total of about 5,000 people — were included, making the benefit more inclusive to a wider range of workers.
Stephanie Harvie, L.L.Bean's manager of wellness operations, said outdoor days are loosely defined. "It doesn't have to be hiking a big peak," she said. "It could be a day at the beach with your kids or going to a park."
Study after study suggests that being in nature improves mental and physical health. Harvie said that the Outdoor Experience Days initiative aligns with this research and the company's heritage. "We believe in the restorative power of spending time outside, and supporting and encouraging time spent outside is one of the most unique and authentic ways we show our employees we care about them," she said.
Last year, 5,000 employees used 78,000 hours, translating to about 10,000 days. The company does not use a specific metric to measure the initiative's effectiveness, but Harvie said L.L.Bean is committed to the program and confident in its positive impact.
"ROI is difficult to track," she said. "For us, it's about making choices about things we believe are meaningful."
Combating healthcare costs, boosting mental health
Some companies are adopting well-being initiatives to confront mounting healthcare costs, with the added benefit of improving mental-health support for their employees.
World Wide Technology, a St. Louis-based technology-services provider, set up two health clinics for employees in 2015 to address increasing insurance costs from urgent and emergency-care visits. After surveying its US workforce, one-third of which is made up of hourly employees, the company found that workers did not visit primary-care doctors because of time constraints and the need to use paid time off. In response, WWT launched free on-site clinics staffed by a doctor, nurse practitioners, and medical assistants. The clinics were available to all employees, regardless of their insurance plan, and the employees' insured dependents.
In 2021, as demand for mental-health services grew during the pandemic, WWT expanded its clinical offerings to include counseling and behavioral-health services. "Even before COVID, our leadership focused on destigmatizing talking about mental health," John Rocco, the vice president of total rewards at WWT, said. "We want to make sure our employees have access to the support they need."
WWT estimates it's seeing a return on investment of about two-to-one: For every dollar invested in these clinics, the company said it saves about $1.50 in insurance costs and gains additional productivity savings.
"The way we see it is that if our employees are using the services, they're getting value out of them," Rocco said.
Children's Mercy Kansas City, a pediatric-health facility in Missouri, also made mental health and well-being initiatives a priority for its staff following the pandemic. This focus was crucial in addressing burnout and retaining talent, particularly amid staffing shortages that caused operational challenges, Dr. Stephanie Burrus, the organization's chief well-being officer, said.
"Working in healthcare is hard," she said. "Our staff face heart-wrenching realities every day: life-and-death situations and cases of abuse and neglect. Those experiences are hard to step away from."
Earlier this year, the hospital started a peer-to-peer counseling support system to augment its in-house one-to-one and group counseling services. It also partnered with Pause with Paws, a program where staff members can interact with therapy dogs for stress relief during their workdays.
"Our goal is to provide consistent, standardized support for our staff during distressing events," Burrus said. "This helps them feel seen and it normalizes the idea that it's OK to not be OK."
'Employees must be well to do well'
Many companies, including Salesforce, the San Francisco-based software group, recognize the benefits of volunteering and offer volunteer programs as wellness benefits.
Research suggests that volunteering boosts mental health and happiness, as it gives people a sense of belonging and purpose. Meanwhile, other studies have found that corporate volunteer programs contribute to increased productivity and improved hiring and retention.
Salesforce's Volunteer Time Off program grants employees seven business days a year to volunteer for a charity of their choice. Since the pandemic, the company has adopted a hybrid approach, ensuring that both in-office and remote employees can participate in Salesforce volunteer events.
Recent employee data found that 75% of Salesforce's 72,000 global employees have participated in the VTO program. The company also reported that workers who recorded VTO within the last fiscal year were significantly less likely to leave the company. Among employees who did leave, those who took VTO stayed 20% longer than those who didn't.
Molly Q. Ford, the company's vice president of talent connection and engagement, said in an email that the program helps employees connect with causes they care about and fosters a sense of purpose that benefits the company and its communities.
"Salesforce operates under the belief that employees must be well to do well," she said.
Evaluating the financial impact of wellness initiatives — especially newer offerings, such as coaching apps, relaxation classes, and stress-management workshops — can sometimes be challenging. Research on these programs has yielded mixed results, with at least one study published this year indicating employer well-being initiatives have few positive benefits and, in some cases, even negative effects.
Still, most companies recognize that having a healthy, productive workforce that feels connected to the organization is worth the investment. Tharpe said implementing a variety of programs and initiatives to help employees navigate challenges and improve their health and well-being often pays off and signals to employees that the organization cares about them.
After all, he said: "The value of a company lies largely in its intangibles, with the workforce being the most important asset."