How employers can rethink workplace benefits to better support Americans' well-being

American workers' well-being remains alarmingly low. 

According to Guardian's most recent Mind, Body, and Wallet® report, only one-third of workers said they are doing well. In looking at key inputs that influence overall well-being, just 36% reported very good or excellent mental health, 37% indicated very good or excellent physical health, and only 32% said they had very good or excellent financial health. While each of these factors is important, the study found that financial wellness accounted for an outsized portion — about 40% — of overall well-being, whereas physical and mental wellness contributed 33% and 27%, respectively. 

For employers, the data suggests that as employees continue to struggle with their well-being, supporting their financial wellness is paramount — with comprehensive workplace benefits being a critical strategy to do so. In fact, according to Guardian's study, half of Americans said they would face financial hardship if they didn't have access to their workplace benefits. 

With open enrollment going on, now is the time to rethink and communicate how your benefits package can support employee financial health and, in turn, the overall well-being of your workforce. In addition to ensuring your benefit programs are comprehensive and consider the needs of your workforce, implementing a robust communication strategy around open enrollment will help educate your employees about the insurance coverages and services available to them, and how these benefits support their well-being across mind, body, and wallet.  

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Supporting wellness through embedded digital services
For many companies, better supporting well-being isn't always about offering more benefits, but rather enhancing existing ones to better meet employees' continuously changing needs. Workplace benefits that include embedded wellness services, for example, can be an impactful way to bolster employees' well-being, including their financial wellness.

Consider disability insurance, a benefit traditionally used to provide income protection. Some forward-thinking carriers have begun to include caregiver support services in disability insurance policies. For the millions of full-time working Americans who have such caregiving responsibilities, this support can be transformational as they likely struggle to navigate these complex and challenging duties. 

 Whether trying to find an in-network provider for an aging parent with a complex medical history or source childcare, many working caregivers experience decreased productivity, increased absenteeism, and a greater need to take a leave of absence from work. If they exceed their paid-time-off options and don't have income protection, their financial health can suffer. Considering that Guardian's Standing Up and Stepping In report found that half of caregivers (47%) already cite having "fair" or "poor" financial health, providing disability insurance where caregiving support is built directly into the product offering may be a helpful solution for working caregivers, ultimately boosting workplace engagement and productivity. 

Embedded services can also support employees interested in pursuing a tobacco-free lifestyle. While tobacco use has declined overall, almost a third of working Americans still use these products, according to Guardian's Habit to Harm report. Yet the same study found that the financial implications of using tobacco are significant, and 70% of users want to quit. From the money spent purchasing tobacco products to higher medical costs, 63% of tobacco users said the habit has had a negative impact on their financial health. 

To help, some innovative carriers are beginning to include access to comprehensive tobacco cessation programs directly within their dental insurance product, offering employees a one-stop shop to get the resources they and their family need to quit. For example, through its partnership with digital substance use management program Pelago, Guardian dental members and their covered dependents age 15 and older have access to a dedicated care coach, personalized digital tracking, cognitive behavioral therapy, and nicotine replacement therapy, if needed. With these services included directly in dental insurance, employees have access to immediate, personalized, and confidential cessation resources with proven results. 

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Managing cost through supplemental health insurance
Rising medical costs are another significant source of employees' financial stress, with Guardian's 2024 Mind, Body, and Wallet report revealing that nearly half of employees didn't think their health plan would cover the full cost of a major medical expense.

Supplemental health insurance — including accident, cancer, critical illness, and hospital indemnity insurance — can be an option to help fill gaps in primary medical coverage like high deductibles. Whether helping employees cover their medical plan co-pays or out-of-pocket transportation costs to and from a doctor's office, benefit payments from supplemental health insurance policies go directly to the employee and can help them avoid having to dip into their savings. 

Additionally, some carriers have also streamlined their claims processes to ensure employees get the maximum financial support from their benefits. For example, when an employee files a short-term disability claim, carriers can automatically check to see if that individual has an eligible supplemental health insurance policy. If eligible, the carrier can review the medical records provided through the disability claims process and automatically issue payment associated with supplemental health coverages without the need for the employee to file a separate claim or provide additional information. This means more money in an employee's pocket when they need it most and less worrying about paperwork. 

Through direct payments and enhanced claims experiences, supplemental health insurance can provide employees with significant financial support. And the data is clear: Those who have supplemental health insurance reported higher financial confidence and overall well-being compared to those who do not, according to Guardian's research. 

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Centering workplace benefits around financial well-being 
Employers today must think creatively about workplace benefits to address the ongoing financial challenges that take a toll on their employees' well-being. 

As a leader, ask yourself: Does your benefits package address the complex and interconnected nature of well-being and the role that financial wellness plays in physical and mental health? If not, how can you adjust your offerings? If so, how can you effectively communicate the full scope of your benefits to your employees?

Ultimately, when employees feel supported, they are more engaged and happier at work. Now is the time to take action.