Gallagher Survey Shows Well-Being Expectations in the Workplace Continue to Rise

Quick look: Employee expectations for well-being benefits top the list of priorities among business leaders since a lack of these offerings coincides with greater job dissatisfaction. To meet employees’ growing demands and help employers maximize their investment, brokers play a key role in designing benefit packages and find partnering with a PEO delivers the ideal support. 

Gallagher’s 2024 Well-Being and Voluntary Benefits Survey illustrates what most employers already know: employees have higher expectations when it comes to well-being benefits. Though employers have increased their commitment to wellness initiatives and programs, especially over the past few years, the challenge is knowing where to prioritize efforts to create the most meaningful impact.

Because well-being encompasses more than physical health care, employers must be willing to offer support in other areas, including mental and financial health resources. Since two out of three workers are willing to leave their jobs in search of better benefits, failure to do so can be a detriment when it comes to recruiting and retaining talent.

To create more appealing benefit packages to serve today’s tight labor market, employers and brokers must anticipate employee expectations and workplace trends to customize benefit plans accordingly.

A closer look at some of the survey’s data provides greater insight into common challenges small- and medium-sized (SMB) employers face and how brokers can offer solutions with the expertise and experience of a professional employer organization (PEO) partner.

74% of organizations have already increased well-being benefits

As big salary increases begin to wane, benefits have become the differentiator for many SMB employers who want to keep and attract top talent. However, though a majority of companies have increased their well-being offerings, only 50% of employees have reported an increase in support, and one in five employees report a decline in their mental, physical, and financial health.

As a result, a focus on benefit relevancy is as important, if not more so, than the number of benefits available. Therefore, it’s important to choose a PEO partner wisely as big-box PEOs often apply a one-size-fits-all approach to benefit plans. Whereas, a boutique PEO like ExtensisHR personalizes benefit plans and effectively communicates their value while also initiating feedback from employees to ensure broker clients stay on the right track.

55% of employees say they are doing the same or worse financially

Expensive benefit plans are limiting employees’ access. Compared to a year ago, only two-thirds of employees rate themselves as financially healthy. Furthermore, 56% of employees say inflation will delay or affect their ability to obtain healthcare within the coming year.

By partnering with a PEO, brokers can offer SMB clients premium benefits from the best providers at competitive prices while also ensuring companies maintain compliance with ever-changing rules and regulations.

92% want benefits focused specifically on financial well-being

While mental health benefits have been highly prioritized in recent years, financial well-being has become increasingly urgent. According to the survey, employees rank their financial well-being as the lowest, and 92% want more resources.

Budget counseling, tuition reimbursement or assistance, and student loan support, in addition to the 401(k) retirement plans, are among the benefit options SMBs can offer. Also, implementing an Employee Assistance Program (EAP) is a valuable voluntary benefit, which delivers free resources and confidential services and assessments, covering a wide range of well-being needs for employees experiencing personal and work-related problems.

55% of employees want a better understanding of their benefits

As SMBs and brokers work continuously to provide successful benefit plans, benefit education remains an important factor. After all, employees can’t appreciate what they aren’t aware of.

For many, the incorporation of digital tools and platforms has been helpful, although 80% of employees state they also want someone to talk to about their benefits. Therefore, diversifying communication methods allows all employees to get their individual questions answered and make informed decisions about their benefits.

Prioritizing employee well-being with a PEO

In short, employees seek an equitable exchange for their work. When they feel their efforts aren’t reciprocated accordingly, their job satisfaction begins to decline, and they lose their motivation to be productive. This can quickly cripple a company as dissatisfied employees eventually begin to look for other jobs.

Well-being benefits have become one of the biggest incentives employers can offer. However, establishing a competitive benefit plan isn’t a set-it-and-forget-it type of strategy. A sustainable solution requires ongoing time and attention to ensure employers and their employees have access and are privy to the best possible options.

A PEO partner prioritizes the importance of benefits and keeps a pulse on industry changes to keep companies agile. This allows SMB leaders to focus on other areas of company growth. As an extension of a company’s HR team, ExtensisHR provides:

• Cost-effective, outsourced HR, recruiting, payroll, benefits, and risk management services
• Dedicated HR professionals offering tailored solutions designed to enhance company growth
• HR technology enabling SMBs to manage HR tasks at any time, anywhere

ExtensisHR also values a people-first approach when creating personalized solutions for SMBs to align with their unique needs and goals. With a dedicated customer service model, broker clients can expect a 10-second response time and a 97% same-day resolution rate.

Furthermore, ExtensisHR remains in the 1% of PEOs with ESAC Accreditation, Certification Institute (CI) for Workers’ Compensation and Risk Management credentialing, and is listed as an IRS Certified PEO (CPEO). As a trusted PEO leader, brokers feel confident making the connection for their clients.

Expand your opportunities

PEOs take on the complexities and responsibilities of HR to help keep employees happy and drive companies toward achieving their goals. This type of partnership allows brokers to differentiate themselves and expand their offerings to highlight their overall value.

Contact ExtensisHR today and learn how we support brokers and their clients through our comprehensive suite of HR and benefit services. We are here to help you grow your portfolio and continuously give SMBs what they need to succeed.