Ready to implement changes to your workplace benefits to support employee mental health and wellness? Here are a few approaches to doing so—keeping cost and transparency in mind.
This article is part of our Wellness in the workforce content series, focusing on the mental health of employees. Explore how you can make a difference—through work experiences, financial education, and access to benefits.
“It’s always important to take action on employee needs,” says Kara Hoogensen, senior vice president and head of workplace benefits, Benefits and Protection. That tangible follow-up to feedback demonstrates to your team that you care.
Fortunately, balancing employee benefits and your budget doesn’t have to be a zero-sum game. Some of the most effective strategies for employee care may be more about access or options than a big spend.
Here are three approaches to implementing the right benefits.
1. Target benefits to employees’ life stages.
If you have four to five generations of employees, thinking strategically about their life stages may help you personalize your offering. You’re likely to spot common circumstances—regardless of employee age—that benefits can help address in a tangible way, like dental insurance or flexible time off.
And if you’re not sure, ask. “The most perfect solutions are collaboratively developed,” says financial therapist Amanda Clayman.
“Understand where every employee is at and then be very intentional about making sure the benefits program, or at least parts of the benefits program, meets your employees in those different phases,” Hoogensen says.
2. Offer voluntary benefits, funded by employees.
Let’s say there’s a potential benefit your employees want, but it’s beyond your budget. Maybe what your employees really need is convenient access to that benefit. By considering the benefit voluntary, you may have a range of options to pay for it—either the full cost, a portion of the cost, or no added business costs at all.
3. Identify key employees.
Many businesses give key employees—those whose skills and contributions are crucial to move the business forward—special attention because of the outsized impact they make. Maybe it’s more autonomy or flexibility, maybe it’s financial perks.
There are many ways to provide financial incentives to key employees:
- Quarterly or annual bonuses
- A nonqualified deferred compensation plan to help with long-term personal savings—or, if they’re in your succession plan, to set them up to purchase the business when the account vests
- Life insurance policies under various structures
Remember that with any shifts in benefits or policies, transparency is crucial.
“Make sure you’re really intentional about communicating,” Hoogensen says. “Explain the benefits you have and why you offer each of them. Share the needs you anticipate those benefits will meet. And pledge to continue to listen to employee feedback on an ongoing basis and make adjustments as needed.
“Equally important is if you can’t take action on something, be transparent and explain why,” Hoogensen says. “People appreciate that.”
“Pledge to continue to listen to employee feedback on an ongoing basis and make adjustments as needed.”
Kara Hoogensen, senior vice president, Benefits and Protection
Demonstrating balance by example
Business owners tend to be wired to grind away to help grow the business and take care of their team. But don’t burn yourself out in the process—threatening the security of everything you’ve built and the people who rely on your leadership.
“Make time for self-care,” says Amy Friedrich, president of Benefits and Protection. “Don’t only talk about it.”
Leading by example doesn’t only mean hard work, grit, and resilience, she adds.
“When I say lead by example, what I mean is take time away from work,” Friedrich says. “Show what your family means to you as a business owner, and make sure that work-life balance is present for them to see how much you value it for everybody on your team.”
What’s next?
Visit our small business resource center for additional content, webinars, and tools. Or contact a Principal financial professional to work through your business needs one on one.
