Employee engagement saw a decline in early 2024, a trend that has Chief Human Resources Officers (CHROs) searching for new approaches and benefits packages to improve overall worker well-being. The Conference Board’s CHRO Confidence Index underscores this shift, with nearly half of surveyed CHROs planning new well-being benefits for 2024. It’s a critical move, as the pandemic and subsequent global instability have deeply affected employees’ mental health and financial well-being.
Budgets Reflect the Change
With a strong belief in their role in employee well-being, businesses are mirroring this sentiment through budgeting. Well-being budgets are predominantly holding steady, with a noticeable 25 percent of CHROs even reporting increased spending. Only a small 5 percent have decreased spending in this area.
Mental Health Takes Center Stage
Mental health is the top priority when it comes to new well-being benefits. This focus comes on the heels of the broader mental health fallout from the pandemic. Financial well-being, physical fitness, and work-life balance initiatives complete the picture, all forming strong components of a holistic well-being plan.
Workers Want and Need More
The desire for robust well-being support has been around for a while. Even before 2024, surveys, like the one conducted by insurance company MetLife, indicated employees wanted increased mental health and financial assistance from their employers. This need intensified further as workers coped with a cascade of global crises in the intervening years. Large employers noted an uptick in mental health concerns within their workforce in recent years, while surveys like Indeed and Forrester Consulting in 2023 showed a shockingly low percentage of employees felt they were thriving.
The Challenge of Access and Utilization
Despite increased attention and funding, utilization of mental health benefits remains low. Why? Experts cite confusion over access, time constraints, and, for certain demographics – like Black workers – long-standing cultural prejudices about seeking mental health assistance. It’s a complex issue that employers will need to tackle head-on for benefits to have maximum impact. This includes clear communication on how benefits work and creating a company culture that destigmatizes seeking mental health support.
The Well-Being Advantage
“Taking a holistic view of worker well-being can not only improve employee engagement and productivity, but also retain your talent,” explains Diana Scott of The Conference Board’s U.S. Human Capital Center. Beyond the benefits highlighted in The Conference Board study, she reminds us that flexible work, positive work-life balance policies, and recognizing employee contributions are all vital components for well-being initiatives to succeed.
The Road Ahead
In 2024, companies are learning that well-being is no longer just a “nice-to-have” perk. It’s an essential element of attracting and keeping great employees and fostering a workplace where people can truly thrive. The focus on well-being will only intensify as employers and workers continue to navigate the ever-changing landscape of work.
