Downward Trend in Workers' Mental Health Takes Toll, With Nearly Half of Employees Spending Between $500 and $6,000 Annually on Mental Health Services
Employers have an opportunity to enhance the return on their benefits spend by investing in personalized offerings employees want and need, according to NFP's 2023 US Benefits Trend Report
NEW YORK, June 13, 2023 /PRNewswire-PRWeb/ -- Over the past 12 months, roughly half (45%) of American workers reported spending between $500 and $6,000 on mental health services, with nearly one-third (32%) saying they spent more than $1,501. This comes at a time when 95% of workers report they are concerned about the economic situation in the US, and financial worries are adding to their stress and burnout.
Despite rising employee stress, fewer than 6% of employers say they spend more than $500 on mental health per employee, and 72% do not plan to add additional mental health support in the year ahead.
These are among the findings from leading benefits consultant NFP's 2023 US Benefits Trend Report.
"Today's employees are looking for more than pay and traditional benefits," said Doug Hammond, NFP's chairman and CEO. "Compensation still reigns supreme in how employees measure value. But with many employers falling short in delivering mental health and well-being solutions, employees are having to invest their own money to address their needs. There is an opportunity for forward-thinking employers to step up and invest in the well-being of their employees, and our team is focused on guiding employers as they take these actions."
While employees of all ages view mental health benefits as imperative, 55% of those aged 18-34 view them as critical, tantamount to their ranking of training/skill development programs. Across generations, more than six in ten (61%) workers think it is their employer's responsibility to help them "achieve their best quality of life."
The Upside for Employers
During a year of economic uncertainty and intense pressure to reduce costs amid ongoing turmoil in the labor market, employers face their own financial anxieties.
Despite this, employees feel employers could better align benefits spending with the services or protections that matter most to employees' personal and professional lives. NFP research shows that while 32% of employers believe they take employee feedback into consideration regarding benefits offerings, only 18% of employees agree.
"Employers can evolve their benefits from 'standard' to 'stand out,'" notes Kim Bell, head of Health and Benefits, NFP. "By offering more personalized benefits, employers can foster a culture of care that helps improve productivity, retention, healthcare costs and absenteeism — all while building a more connected and compassionate workplace."
To this end, some employers are exploring offerings that support their diversity, equity, inclusion and belonging (DEIB) policy objectives through investments that can improve access to care and limited-scope healthcare reimbursement accounts.
More Personal vs. Professional Benefits Wanted
Over the past few years, the line between employees' personal and professional lives has blurred further. Nearly three in four (71%) employees report they experienced personal life changes over the past 12 months and an additional 59% experienced professional changes. However, over six in ten (61%) say their benefits packages haven't kept pace. In fact, only 31% of workers believe their employer offers benefits packages for "people like them."
Perhaps as a result, fewer than three in ten (28%) workers say they make maximum use of their benefits. To address this disconnect, employers can explore voluntary benefits solutions that allow employees to customize the forms of protection they value most at minimal cost to employers.
While core voluntary benefits are already widely available, NFP has seen a sharp uptick in the range of options and expects innovative offerings to grow even more in the year ahead.
"Making the right benefits available to the right population of employees is more important than ever," remarks Bell. "Despite economic conditions and recent mass layoffs, employees are still leaving jobs that don't align with what they value. They have more agency, and they're not afraid to make a change."
Research Methodology
NFP's US Employee and Employer Benefits Survey was administered online in January 2023 and includes 505 employee benefits decision-makers working in a human resources role, as well as 519 employees working in full-time or part-time roles across industries throughout the US. The NFP 2022 US Workforce Survey was administered online in November of 2022 and included 1,003 full-time and part-time workers spanning diverse industries across the US. In addition, NFP's annual US Benefits Trend Report supports employers with data generated from the company's proprietary benchmarking database of more than 4,000 employers of all sizes.
Here is NFP's 2023 US Benefits Trend Report.
About NFP
NFP is a leading property and casualty broker, benefits consultant, wealth manager, and retirement plan advisor that provides solutions enabling client success through the expertise of over 7,400 global employees, investments in innovative technologies, and enduring relationships with highly rated insurers, vendors and financial institutions. NFP is the 9th best place to work for large employers in insurance, 7th largest privately-owned broker, 5th largest benefits broker by global revenue and 13th largest broker of US business (all rankings according to Business Insurance).
Visit NFP.com to discover how NFP empowers clients to meet their goals.
Media Contact
Josh Wozman, NFP, 415-318-6441, josh.wozman@nfp.com
SOURCE NFP
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