Well-Being Matters Most: What 2020 Taught Us and Trends to Watch in 2021

2020 has been a roller coaster of a year. With all the challenges it has brought, it has also motivated us to focus on what matters most: employee health and well-being. This year more than any other, has put a spotlight on how employers can support their employees’ well-being with benefits that improve their physical, mental, and financial health while driving employee engagement and productivity. 

Many of us are familiar with the toll stress takes on our physical and mental health, but we often forget what is the biggest cause of stress in the first place--finances. This year we’ve seen firsthand how the pandemic-driven economic uncertainty has fueled financial stress. Money is a significant cause of stress for Americans, impacting both physical and mental health. For example, adults with high levels of debt have higher blood pressure and symptoms of depression. In addition, 1 in 4 Americans avoid medical treatment due to the fear of not being able to afford medical bills, leading to even poorer health outcomes. If we want to be physically and mentally healthy, we need to be financially well.

Leading employers understand the importance of investing in their employees’ financial well-being. Throughout 2020, we have been fortunate to partner with forward thinking organizations in their mission to enable employee financial success. In this blog post, I’d like to share my perspective on key industry trends in 2020 related to employee well-being and financial wellness, and highlight some predictions for the year ahead. 

First, the pandemic caused record-high unemployment and a deep recession. The lack of a robust social safety net created an opportunity for employers to step in and lead. Throughout the year, we saw companies accommodate government health mandates, transition to remote work, and provide mental and financial support for employees. 

Employers are uniquely positioned to support their employees’ financial well-being as most of our financial life is tied closely to our employer’s as they are the primary source of income and benefits. Seventy-two percent of employers surveyed by Prudential saw greater employee demand for financial wellness programs. This trend has led to an increase in employers’ interest in supplementing their current financial benefits by either offering solutions for all employees (vs a subset) or more holistic financial wellness programs that support more aspects of employees’ lives. 

Second, more than three-quarters of American office workers shifted to a remote work model as a direct response to the pandemic--a first for most employees. At BrightPlan, we similarly embraced a work from anywhere model, allowing us to give our employees more flexibility while driving engagement and enabling us to grow and attract talent nationwide. 

This move to remote work has fundamentally changed employees’ needs and how employers are responding to this new reality. We saw HR leaders actively listening and reaching out to their employees for feedback on what benefits they value most and evolving their offerings to match demand. For example, we saw HR leaders move away from office perks like snacks and massages and focus more on employee well-being programs. We also learned that despite the challenges, most employers are committed to investing in employee wellness benefits-- with 83% saying they either increased or kept their budgets flat. 

Lastly, the social justice protests this summer put a spotlight on corporate Diversity, Equity, and Inclusion (DE&I) efforts.  Organizations throughout the country doubled down on their commitments--from revamping hiring processes, diversifying boards, hiring dedicated executives and teams focused on DE&I, prioritizing charitable cause contributions, and mandating anti-bias training.  

Efforts to increase representation and remove bias are important but not sufficient to solve the larger issue of financial inequality. Financial wellness can be a valuable tool to help create lasting wealth for employees from underrepresented communities. Programs that boost financial literacy, help employees create and achieve financial goals, and give quality personalized advice can go a long way in creating a solid financial foundation for building generational wealth.  By helping underrepresented communities achieve financial wellness, employers can play an active role in bridging the wealth gap.

As I look ahead to 2021 and the rollout of the COVID-19 vaccine, we will see workplaces throughout the country slowly re-emerge from the pandemic. A more flexible and remote-friendly workplace will be the norm. In this new world of work, employers will need to redefine employee engagement, with well-being playing a strategic role. Here are four trends to watch for in the new year:  

• Insights
  A more remote-friendly workplace will require employers to find new ways of listening and keeping a pulse on employee engagement to gain insights. Companies will need to think outside the box on how to best do this beyond surveys, to get an accurate and ongoing gauge of how their employees are doing and feeling. 
  
• Benefits that Matter: Wellness
  Employers will continue to refocus perks and programs on benefits that matter most to their employees and support holistic well-being. Wellness and performance are close relatives. Benefits that help employees improve their physical, mental, and financial lives will be top of mind throughout 2021.
• Personalized with a Human Touch
  In the new year, employers will need to find creative ways to foster social connections in the increasingly virtual workplace. Remote working is the perfect opportunity to personalize events with a human touch. For example, company events no longer have to cater to everyone in the office, resulting in mediocre events. Everything from virtual team meals to feedback sessions can and should be customized for the individual and the team’s unique and personal needs.
• Purpose
  Lastly, 2020 taught us that having a sense of purpose or working for a mission-driven company can keep employees motivated and engaged even in tough times. In the new year, employers need to reflect on this important priority and look for ways to further enhance their company’s societal impact. 

2020 will no doubt go down in the books as a year of herculean challenges. Yet there are many lessons learned and we will surely emerge from this stronger. As we head into 2021, it is clear that companies must continue to prioritize employee well-being and engagement. No matter what the new year has in store for us, by listening to our employees and acting quickly, companies can improve overall employee experience and foster more productive workplaces that fuel an economic recovery.

I wish you and your families the very best for the holidays and the year ahead. Be safe and healthy.