A wellbeing strategy that cares for the whole person across the four pillars of mind, body, wallet and life is critical. Not only does this benefit employee health, but it also strengthens organizational health. A platform-based wellbeing strategy is key to making that happen.
If one thing can be said about the past few years, it’s that we’ve been living in tumultuous times. Inflation, high interest rates and rising healthcare costs — not to mention a once-in-a-century pandemic — have left us feeling battered and bruised. Some of these conditions have eased, but many people are still struggling. Millions are living paycheck to paycheck, mental health concerns have reached epidemic proportions, while chronic diseases, obesity and substance abuse are on the rise. We are deep in the throes of a wellbeing crisis.
The silver lining to this turmoil is the role it has played in awakening employers to the wellbeing challenges of their people. Not just physical wellbeing but total wellbeing across all four pillars — mind, body, wallet and life. Many organizations have responded by bolstering their wellbeing offerings to support workers as they strive to improve their emotional health; build stronger, healthier bodies; achieve financial security; and live with purpose.
Companies that integrate wellbeing into their organizational purpose, mission and values have been shown to enjoy a competitive advantage in the marketplace. There is data pointing to the causal relationship between wellbeing and financial performance.
According to research from The Josh Bersin Company, organizations that leverage the right wellbeing strategies are more than twice as likely to outperform their peers financially, more than five times as likely to have lower annual healthcare claim costs and do three times better at engaging and retaining their employees. In addition, every dollar spent on holistic wellbeing (emotional, physical, social and financial) results in up to a $5 return for every $1 invested.
In a study published by the Journal of Occupational and Environmental Medicine, a group of researchers set out to explore the link between companies investing in health and wellbeing programs and stock market performance. Over a 14-year period, they measured the stock performance of C. Everett Koop National Health Award winners compared with the average performance of companies comprising the Standard and Poor’s (S&P) 500 Index. The stock values of the Koop Award winners appreciated by 325% compared to the average market appreciation of 105%.
Utilization challenges
Employee wellbeing is one of the smartest investments companies can make, but engaging workers with the provided tools and resources can be challenging. Despite the glaring need for wellbeing programs, employers often struggle to achieve the desired ROI, due to low awareness and utilization. According to a study from the Integrated Benefits Institute (IBI), just under half (49.8%) of employees say they are aware of their employers’ wellbeing offerings. Of those, only 64% utilize them.
This lack of awareness and utilization is even more pronounced among lower-income employees. Despite increased investments in tools and resources to help employees improve their financial and mental wellbeing, one-third of workers in households earning less than $50,000 say their employer provides only basic wellbeing benefits, resulting in significant underutilization, according to the 2024 Alight Winning with Wellbeing report.
Improving utilization is essential — not only to help employees realize their wellbeing goals, but also to boost the bottom line. Even a slight increase in utilization equates to significant ROI. At Alight, we estimate that for each 1% increase in wellbeing program utilization among those targeted, an employer realizes $1 million in annual value for an enrolled population of 10,000 people.
A wellbeing strategy delivered through an employee experience platform, complemented by human support, is key to making that happen.
Delivering measurable results
Companies like Amazon, Netflix, Spotify and others engage customers and spur them to action by employing AI-powered platforms that listen, learn and adapt based on each individual’s actions. Increasingly, employers are turning to AI-powered platforms to engage with their internal customers — employees — and empower them to make confident decisions that will improve their wellbeing across all four pillars.
Integrated, intuitive digital platforms, like Alight Worklife® bolstered by the Alight LumenAI™ engine, personalize the experience, delivering targeted, relevant information and actionable recommendations and nudging workers to take action through all of life’s moments, big and small. By reaching out with personalized communications, employers make employees aware of available wellbeing benefits and help them identify which offerings will deliver the most value to themselves and their loved ones.
Through our work with clients, we have found an integrated and personalized platform approach nets on average 4.5 times more participant interactions. Alight’s personalized content and recommendations have resulted in a 50% AI content engagement rate and a 10% increase in relevant program signups across our clients’ employee populations.
Specific case studies of our clients achieving measurable results include:
- A multinational food and beverage conglomerate faced a significant challenge in helping employees find financial balance and feel secure in their reimbursement account savings. The company’s 318,000 employees lacked awareness and knowledge of the Health Savings Account (HSA). As a result, the benefit was underutilized, despite its potential for saving pre-tax dollars for medical expenses. Leveraging Alight LumenAI, the company implemented an AI-fueled solution that used targeted outreach to drive HSA participation amongst non-contributing employees and encourage increased contributions amongst participants.
The success of the initiative is undeniable:
- Average increase of $1,231 in HSA contributions per participating employee
- 33% conversion rate of targeted personalized messaging
- $0.86 million in savings in employer Federal Insurance Contributions Act (FICA) taxes
A U.S.-based global conglomerate with a diverse portfolio in pharmaceuticals, consumer health and medical device distribution was struggling to improve employee engagement in health and retirement savings plans. Leveraging Alight LumenAI technology, they focused on employees who were not maximizing the value of tax-advantaged accounts.
The results were exceptional:
- Employees starting or increasing contributions in their 401(k) savings increased by 17%
- The average 401(k) contribution rate increased by 5.4%
- Employees starting or increasing contributions to the HSA rose 6%
- Average increase of $1,750 in employee HSA contributions
Ensuring your organization is focused on employee wellbeing is the right thing to do for both the employee and the company. Measuring the financial impact of a wellbeing strategy is essential to realizing its full value. The ultimate corporate key performance indicator is the bottom line.
Key questions include:
- Are wellbeing program participants generating less in healthcare claims?
- Are we hitting financial targets?
- Are we outperforming our industry peers?
When employees are healthy, companies are healthy. By investing in an AI-powered wellbeing-focused employee experience platform, organizations not only create an environment where their people can thrive, they also reduce healthcare costs and exceed financial targets.