The scope of employer responsibility has broadened dramatically in recent years. Since the pandemic, employees’ expectations of the benefits their employer should provide have expanded beyond the traditional offerings of health, dental and vision insurance. For example, employees believe their employer should help them with their commuting costs and they believe their employer should make them “net better off”. 

In order to ensure employees are net better off, as well as boost employee retention, employers need to address each component of employee wellbeing, as well as address health inequities for marginalized groups. This concept of addressing all of the determinants of employees’ health and health equity is referred to as whole-person health. 

What is whole-person health?

Whole-person health is the predominant benefit model that addresses and assesses employee wellbeing. Whole-person health encompasses a person’s physical, mental, social, and financial health. It’s a benefit model rooted in the idea that if one aspect of a person’s “whole health” is compromised, their health outcomes and their ability to contribute to the workplace declines. It also addresses health equity among employees. 

Whole-person health addresses the myriad of factors that influence a person’s wellness outside of the reach of medical health insurance. These factors include:

• Access to housing 

• Nutrition information and access to healthy food 

• Access to transportation 

• Education access for both themselves and their children

• Financial literacy and support

• Expanded mental health coverage

Both the number and quality of the benefits that address these concerns have a direct relationship to how valued employees feel at their company and their engagement with their job. A recent survey found the following:

• 88% of employers think their company genuinely cares about the wellbeing of its employees, while only 66% of employees feel that way. 

• Employees who believe their employer cares about them are 69% less likely to look for a new job. 

• 73% of employees said they would be better motivated to stay at their current company if they had better health insurance options. 

• 82% of employees with 10 or more benefits say they’re thriving compared to 58% of employees with 1-4 benefits who say they’re thriving.

Why is whole-person health important?

A benefits package that takes into account whole-person health is important because employees are stressed. They are disengaged from work and many are struggling with depression and anxiety. Forty-one percent of parents are so stressed they can’t function. And these conditions are costing both workers and companies money in the form of higher healthcare costs and lower productivity, and they are worsening health outcomes for individuals. In fact, depression and anxiety cost the global economy $1 trillion a year in lost productivity. Health inequities cost U.S. companies $42 billion in lost productivity. In the following sections we’ll dig into why Whole-Person Health is important to the employee and the employer.

Why whole-person health is important to employees

1. Employees want to feel healthy. They want to thrive at work and in their lives outside of work. But since the pandemic, employees have struggled with higher rates of mental health issues like stress, burnout and loneliness. One in ten employees say their job is having a negative impact on their mental health. 

2. Employees are also stressed about their finances. In fact, even among employees that make an annual income of $100,000 or more, 52% report feeling financial stress. And 1 in 5 admits that their productivity at work is impacted by their stress.

3. Stress makes employees sick. Eighty-two percent of health outcomes are attributed to social determinants of health. Employees that are under chronic stress are more likely to experience anxiety, depression, heart disease, lower immune system function, problems with memory and focus, and more. 

4. Employees’ interpersonal relationships are suffering. Stress also negatively impacts their interpersonal relationships, leading to communication breakdowns, and a lack of intimacy and emotional support.

By addressing employees’ stressors through a whole-person health benefits program, employers can help to keep employees healthy inside and outside of work.

Why whole-person health is important to employers

1. It saves money. Simply put, sick employees cost employers money. They cost employers money in terms of reduced productivity, recruiting costs due to attrition, higher health insurance premiums, and more. Research suggests that for every $1 invested in employees’ mental health, employers can save as much as $2-$4 on other expenses such as healthcare costs. And failure to focus on the various social determinants of health can lead employers to waste money on a benefits package that isn’t as impactful as it could have been. 

2. It improves company culture. Benefits are a reflection of how valued workers feel by employers and workers that feel valued at work are more satisfied with their job, they’re more creative and they’re more likely to take good risks.  Research has shown investments in health equity and Whole-Person Health-informed benefits boost organizational output and in turn boost annual returns. 

3. It makes the company competitive in the hiring market. Ninety-five percent of employers agree that Whole Person Health can improve the healthcare experience for employees and help build a better benefits package. And 95% of employers are currently taking at least one action to address health equity. In addition, 1 in 3 employees says the future of work is about equity. So, odds are, the talent you’re trying to recruit is also fielding offers from companies that are building their benefits package around Whole Person Health and rectifying health inequities. If you don’t, it’ll be hard to recruit the talent you need to be successful. 

4. It optimizes healthcare spend. Employees with at least one unmet basic need can expect to spend 10% more on healthcare costs than those whose social needs are met. Higher healthcare spending by employees can lead to higher annual premiums for the company.

Which benefits address whole-person health?

When deciding which benefits will have the biggest impact on improving their employees’ overall health, employers should be looking for plans and benefits that tackle the previously mentioned social determinants of health that affect their employees’ wellbeing including access to housing, nutritious food, transportation, education, financial literacy, and mental health care.

The following benefits can have a positive impact on employees’ overall health and well-being.

Caregiver benefits

Post-pandemic economic conditions have reduced employees’ spending power. At the same time, the cost of childcare rose 9% in 2023 and access to childcare has dropped since the pandemic. This rising cost is causing women to leave the workforce and families to dip into savings to cover the cost. A Dependent Care Flexible Spending Account (DCFSA), allows employees to deposit pretax money to reimburse for child and adult day care expenses that allow them to work, while also reducing their taxable income. Employers can make their own contributions to the accounts to further support employees’ childcare needs. Companies can also consider offering post-tax lifestyle spending accounts to cover care giving expenses, including day camp fees or after-school programs.

Commuter benefits and transportation subsidies

Recent data shows that 76% of Americans commute daily and the average American spends approximately $13,000 annually to get to work. For higher income Americans that represents roughly 16% of their household spend, but for lower income Americans, that can take up to 30% of the household budget. In addition, more Americans, especially those aged 25-34 expect their employers to pay for their commutes. By offering transportation benefits, like a pre-tax mass transit or parking account, employers can help employees shoulder this cost. Employers can also offer a post-tax Lifestyle Spending Account (LSA) that reimburses for costs associated with traveling to and working at the office. These expenses could include: gas and tolls, bike repairs and maintenance, laundry and dry cleaning, and meals at work.

Nutrition and wellness programs

One of the elements of supporting employees holistically is helping those that live in food deserts, have a difficult time accessing nutritious food, or who lack education on which food is nutritious, can benefit from a wide range of programs. Employers can provide one-on-one consulting with nutritionists, offer smoking cessation programs, provide wellness Lifestyle Spending Accounts (LSAs) that support healthy meals or nutrition counseling, and more. LSAs can also be used as part of an incentive program to encourage employees to maintain a healthy lifestyle like going to the gym, getting in a certain number of steps per day, or joining a recreational sports league.

Educational support

Millennials have the highest level of student debt of the current working generations and they see it as an impediment to financial health. Tuition reimbursement programs as well as student loan repayment benefits could help support employees’ access to education and address an important factor in health equity. DCFSAs can also be used to save and reimburse for preschool expenses for employees’ dependent children. In addition, providing an LSA to support professional development and continuing education can help reduce employee turnover. When employees feel they can continue to learn and grow, they will stay more engaged with their job and career. 

Financial literacy

Employees feel financially insecure: Inflation has eaten into their buying power and a volatile economy is adding to their stress. To support employees’ financial literacy as well as their financial wellness, employers can offer employees an LSA that reimburses for financial literacy classes, meeting with a financial advisor, and more. Additionally, providing employees with multiple ways to save money like Health Savings Accounts (HSAs) as well as retirement savings benefits or emergency savings accounts can help employees to feel more financially sound.

Family building benefits

One of the great things about post-tax Lifestyle Spending Accounts is that they can be customized to meet the varying needs of your diverse workforce and you can offer as many LSAs as you want. One important type of LSA that can help address health inequities is an LSA that supports family expansion. This could be used to reimburse for expenses like fertility treatments not covered by health insurance, fertility counseling, or adoption expenses. 

Preventative care

The best time to treat a health issue is before it starts. People who regularly receive preventative care (including children), have a lower risk of disease, disabilities and death. The trick is getting people to seek preventative care. One way to ensure your employees have adequate access to preventative care is to offer a High Deductible Health Plan (HDHP) which has the lowest annual premiums of the traditional health plans, but covers preventative care at 100%, even before the deductible has been met. If you pair your HDHP with an HSA, employees have a tax-free way to save for their other health expenses and their deductible. You might also consider offering a post-deductible HRA (PDHRA), which can enable employees to reimburse for out-of-pocket expenses after a certain amount, lessening the amount of money they need to take out of their HSA. 

In addition, when considering new health insurance plans, you want to make sure they cover the following preventative care:

• Mammograms

• Perimenopause/Menopause screenings

• Breast cancer screenings

• Prostate cancer screenings

• Bone density screenings

• Hepatitis C testing

• Immunizations

• Behavioral intervention counseling

• Other disease prevention and screenings

Comprehensive reproductive health

Over the course of their lives, women can face a range of health needs and challenges due to hormone fluctuation. These challenges can include (but are not limited to):

• Endometriosis

• Polycystic Ovarian Syndrome (PCOS)

• Amenorrhea

• Fertility issues

• Family planning needs

• Post-natal care

• Breastfeeding help

• Hormonal changes due to perimenopause

• Menopause

• Breast cancer

• Cervical cancer

Ensuring that your health insurance plan covers testing and treatment for these conditions can go a long way toward rectifying health inequities and ensuring that all employees have access to the care they need.

Mental health coverage

Millennials and Gen Z are most focused on these types of benefits, but expansive mental health benefits make organizations more attractive when hiring employees from any generation and increase employee retention. Make sure that your health insurance plans include access to mental health services. In addition, expanded mental health coverage can include treatment for mood disorders, marriage and family counseling, addiction, postpartum depression and more. For wellness support outside of what is covered by health insurance, you can consider offering a post-tax LSA.

How do you build a whole-person health benefits package?

All of these benefits won’t be relevant or impactful for every employee. That’s why 42% of employers plan to offer flexible, personalized benefits. That way, employees can build their own package based on their individual needs.

Creating a whole-person benefits package could seem like a monumental task. But just like building a great product or company, it’s best taken slowly and thoughtfully, while gathering lots of feedback. Survey employees to find out what their major sources of stress are, and what benefits would be most impactful. Then assess whether your current benefits package provides what employees need and identify what you can add. Also consider adding flexible benefits, like Lifestyle Spending Accounts or HSAs that employees can use on the kind of expenses the are most meaningful to them. Making incremental changes each year, ensuring that you include employee education about your offerings, and reflecting on what works can go along way towards providing a holistic, supportive benefits package. 

Get started with Lively

Lively offers a comprehensive suite of benefit solutions that can be customized to address your employees’ needs and complement your current benefits package. Lively plans can be bundled for easier administration and economical pricing, as well as streamlined employee communication and onboarding. If you’re ready to start building toward whole-person health, reach out to Lively today!