Explore the compelling business case for evolving group benefits to better meet the diverse needs of today's workforce through an inclusive, equitable approach that addresses varied family structures, social determinants of health, and holistic employee wellbeing.
Ryan and his husband are expecting a baby with a surrogate. Maria has pursued fertility treatments over the past two years. Ron struggles with financial stressors that leave him depressed and anxious.
These scenarios, some of them rare just a decade ago, are now commonplace. Yet many group benefits have not evolved to meet the needs of a diverse workforce.
Employers have always used group benefits as a tool to deliver on organizational objectives such as attracting and retaining top talent and maintaining a healthy and productive workforce. Now, benefits can serve as a powerful avenue to help staff feel accepted, seen, and treated fairly in the workplace.
This article explores how and why group benefits should adapt to meet the diverse needs of today's workforce with an inclusive approach that respects varying family structures, social determinants of health, and overall employee wellbeing.
While corporate diversity initiatives have faced increased scrutiny and pushback in some quarters recently, research still overwhelmingly demonstrates the benefits of building an inclusive corporate culture and cultivating equitable systems and environments where employees of all backgrounds can thrive.
A 2019 McKinsey analysis highlighted that companies in the top quartile for gender diversity on executive teams were 25% more likely to achieve above-average profitability. Further, 80% of Fortune 500 companies acknowledge the financial benefits of workplace diversity.i
However, emphasizing diversity as a mere profitability strategy may actually deter underrepresented job candidates. Research suggests a more effective approach is to shift from a business justification to emphasizing diversity as a core value of the enterprise, akin to innovation or integrity.
Modernizing benefits to meet diverse workforce needs is essential. The approach includes recognizing varied elements of diversity, including the social determinants of health, evolving family structures, and the components of overall wellbeing.
Recognize that factors such as race, culture, and sexual orientation affect health outcomes and access to services. If benefit plans are not designed to reach and provide needed health services to all groups, they may fall short on their objectives.
Acknowledge and adapt to the variety of ways people build and support families, such as accommodating single parents, same-sex couples, and childless partnerships.
Focus on the holistic health of employees, which includes their mental, financial and physical health, ensuring more equitable treatment across all facets of health.
Benefits plans play a crucial role in addressing healthcare inequities. Health is affected by a wide variety of non-medical factors, including race, education, disability, housing status, and much more. Plans that seek to improve health outcomes may fall short if employees interact with and experience the plan differently due to any of these factors.
More than meeting the basic medical needs of employees, benefits can address the inequity some groups – such as indigenous peoples, LGBTQ+ and diverse populations – face when accessing health services.
The anticipated growth of diverse populations within the workforce underscores the importance of health equity efforts.ii By 2036, the visible minority population is expected to represent between 31.2% and 35.6% of the Canadian population. The US has been trending in the same direction for the past decade. By the 2020 US census, nearly four in every 10 Americans identified with a race or ethnic group other than white.
Insurers are responding to the call for health equity considerations. A 2022 Mercer global health trends reportiii indicates 30% of insurers are designing more inclusive medical plans by:
With the evolution of family dynamics, benefits packages must offer more flexibility to address diverse needs. Insurers can add specific benefits for these various family structures, while recognizing the same level of protection is not adequate for all employees.
Enhancing employee wellbeing has become a critical focus for organizations worldwide, leading to a focus on the way benefits are structured to support both mental and physical health. Traditionally, employee benefits primarily addressed core health insurance and retirement savings needs. However, there is now an expectation that benefits must encompass much broader aspects of overall wellbeing.
For mental health specifically, there has been trend towards greater equity in treatment and coverage after decades of stigma and the historic use of exclusions or limitations for mental health conditions. For example, in Canada, mental health coverage is expanding to include different types of practitioners like psychotherapists and social workers, as well as digital therapy and coaching programs. In the US, insurers and governments are exploring health parity measures to ensure mental health conditions receive equitable treatment and coverage compared to physical ailments.
Alongside these mental health improvements, a more holistic approach to health recognizes the wide variety of contributors to overall wellbeing. This is addressed by increasing support and destigmatization around conditions like substance use disorders that impact overall health.
Moreover, wellbeing programs are evolving to acknowledge that financial wellness is integral to overall employee health. Research shows an association between financial stress or hardship and mental health conditions such as depression, sleeplessness, and anxiety. And, there appears to be a bidirectional relationship where financial hardship exacerbates mental health issues, while mental health struggles can contribute to financial difficulties. As such, innovative benefits like financial coaching which addresses the psychosocial barriers to action spending and account analytics to provide actionable insights, and low interest loans or pay advances are emerging to address financial wellness.
As organizations strive to reflect their commitment to greater equity through group benefits, it is crucial to embrace a holistic approach that encompasses health, family, and overall wellbeing. By fostering an inclusive environment that addresses the specific needs of a diverse workforce, companies not only enhance their operational success but also contribute to a more equitable society. The future of group benefits lies in its ability to reflect and support the diverse realities of all employees, thereby fostering a truly inclusive workplace culture.
As you look to evolve your organization's group benefits to better reflect your diverse workforce, leverage RGA's deep expertise and innovative solutions. Contact us today to discuss modernizing your benefits strategy for the future of work.
