What should go into your total rewards? After all, it is not limited to just base pay and insurance. Modern employees expect a holistic approach that addresses many needs, including mental health and financial wellbeing.
Half of all adults will experience a mental health issue at some point in their lives and more than half of employees say that work moderately affects their mental health. Financial stress is equally pervasive, as many cite money worries as a top cause of anxiety, disrupting sleep and undermining productivity.
Therefore, to meet these needs while competing for talent, organizations are integrating mental and financial wellness into their total rewards strategies.
The Importance of Mental Health in Total Rewards
There is an undeniable link between mental health and employee engagement. Work related stressors such as toxicity, bad leadership, and unrealistic demands can lead to massive burnout and disengagement. Companies that offer comprehensive mental health benefits experience higher retention because employees do factor wellness programs into job decisions and also feel more loyal to employers that support their wellbeing.
Highlight emerging total rewards trends and focus on including mental health coverage as a core component. Technological solutions include virtual therapy and meditation apps, while tried and true traditional methods include mental health days and stress management workshops.
Financial Wellness as a Strategic Advantage
Employees increasingly see employers as partners in their financial wellbeing. Financial literacy has long been treated as a personal responsibility, yet nearly three quarters of workers say financial wellness programs are important and only 28% of employers offer them.
Rising costs and economic uncertainty causes money worries to become the top source of stress across generations and workplace demographics. A majority of employees are reporting sleep disruption and declining mental health as caused by financial pressure. As a primary source of income, an employer can contribute much to an employee’s financial stability. This means financial support influences workers’ decisions to stay with a company or not.
Forward thinking organizations can respond to these needs with innovative programs. Enhance financial literacy with personalized coaching or investment education workshops. Or directly offer assistance like student loan repayment programs and emergency savings stipends.
Embedding Wellness into Total Rewards Communication
Much of your total rewards strategy needs to be spent on the education component. After all, integrating mental wellness and financial literacy into your total compensation plan can only be effective if employees understand and then utilize the resources available.
Therefore, personalized total rewards statements should be used to highlight mental health benefits and financial wellness tools alongside the traditional offerings of salary, bonuses, medical plans, and retirement contributions.
Customize standard charts with multimedia content that emphasize all your unique offerings. Take advantage of a digital format for real time updates and availability on the go. Utilize engagement analytics to help measure how employees interact with these resources, then refine the messaging to improve adoption.
Strategies for Success
A truly comprehensive and effective total reward strategy must be built carefully from the ground up. Start by assessing employee needs and identifying the mental and financial stressors that impact your workforce. Review your benefits offerings, fine tune options such as counseling, mindfulness apps, budgeting tools, and retirement education.
After the benefits plan is built, communicate these programs clearly and regularly. Year-round engagement ensures employees know what resources exist and how to use them. Encourage employees to use underutilized benefits, or swap them out for more attractive offerings next open enrollment. Increased communication and improved analytics create a positive feedback loop that uplifts your benefits program.
Once you make mental and financial wellness central to your total rewards strategy, you create a culture of care that promotes engagement, reduces turnover, and enhances organization resilience.
