How to achieve equitable employee benefits in 2021 (and beyond)

For employers, the notion of ‘equity’ holds far more weight today than it did just eight months ago. The pandemic has exacerbated inequalities in the workplace, creating a unique set of challenges for every employee - whether that’s juggling work with homeschooling, caring for ageing parents, or navigating remote work difficulties. While employers have traditionally approached benefits offerings as one-size-fits-all package solutions, this approach no longer works in a world where everyone is confronted with their own set of challenges. Traditional benefits packages assume all individuals have the same or similar needs and experiences - but this is far from the truth. Our challenges are so differentiated, in fact, that some companies have decided to opt out of performance reviews this year, realizing that the stress caused by this unique situation may inadvertently introduce unconscious bias in the process.

With COVID-19 bringing inequalities to light and creating difficult work circumstances for employees, 2020 has accelerated an urgency among employers to adopt true and meaningful benefits equity. 

Why benefits equity matters now more than ever 

The pressures and challenges of current times are resulting in overworked and stressed out employees, which cripples productivity and negatively impacts the bottom line. A July survey found that 40% of employees feel completely burned out due to COVID-19 related circumstances; meanwhile 65% of employees reported that mental health issues are directly impacting their ability to work. According to the World Health Organization, these types of stressors typically cost the global workforce an estimated $1 trillion in lost productivity each year. 

If that’s not enough to convince you to rethink your benefits offerings, consider the impact on your talent pipeline. Benefits equity isn’t just good for your people; it’s good for your employer brand. Whether intentionally or not, your company’s benefits strategy says a lot about your company’s culture and beliefs. Moreover, the moves you make now will stay with your brand far beyond the current moment of crisis. Once we are past the economic turmoil and job losses, we are likely to see a different war for talent - one where talented employees reevaluate their company loyalty and compare employers based on how they treated their employees during the crisis. Simply put, the way you treat your employees now will inform your ability to attract and retain talent for years to come. 

Key considerations for achieving benefits equity in your workplace 

While most employers understand the importance of benefits equity, many struggle with identifying the right services to meet every employee’s needs. After all, there is no one blanket solution that will successfully cater to every unique situation. In an August survey of Fringe users, less than half of employees indicated that their employer has provided additional benefits or support during COVID-19. This isn’t because they don’t want to - it’s because the process of identifying simple solutions to complex problems is inherently difficult. 

As employers navigate the sea of various services and support resources, there are some important considerations that will help ensure you’re carving out meaningful solutions for all individuals. 

Here are some things to think about as you rework your benefits strategy:

Throw out best practices. 

These times are unprecedented, and the play books are still being written. Now is not the time to follow best practices. It’s important to acknowledge that what may have worked in the past, or what may work currently for another company, may not be right for your company. Design for what people need, not just because others have done it. 

As part of this approach, be sure to address specific challenges in real-time, versus waiting for a proven method or strategy. For example, the large swath of employees feeling burnout need to feel sufficiently supported by their employer - now. 

Reallocate budgets.

Between cutting back on real estate costs, catered lunches, and in-person events, the WFH era has resulted in massive cost savings for employers - in fact, $30 Billion dollars per day! Now is the time to put that cost savings towards your people. Consider services you offered before that may not make sense today, such as an on-site gym membership. With gyms closed down for the foreseeable future, employers can shift that money towards virtual fitness offerings in which employees can select from a number of different class types to meet their needs. 

Be careful not to generalize employee demographics.

Be careful not to place certain demographics into general categories and assume all needs are the same or similar. Take working parents, for example. Parents’ experiences through COVID-19 are vastly different based on a number of different factors like the age of the child, the level of family support they receive or have access to, the kinds of curriculum provided by their school, and the types of responsibilities required of their job. A recent poll from Sequoia Benefits demonstrates these differences well: 46% of people leaders reported that employees with children under 12 years of age have been less productive and engaged; meanwhile, among parents with children over 12 years of age, that number dropped to just 15%. 

A large tech company in our network offers its roughly 800 parents subsidized access to “backup childcare” by an on-site childcare facility. Since March 1st, only one parent has utilized the service. Don’t assume all individuals within a demographic want the same thing, or that one solution - in this case, childcare - is the answer to every person’s problems. 

Change the way you think about ‘wellness.’ 

Today, ‘wellness’ is too narrowly defined. The #selfcare movement in recent years has groomed us to think of wellness as meditation, Ginseng face masks and yoga retreats. For employers, this mindset greatly limits the types of services being offered to employees. Instead, it’s important to think about wellness as ‘well-being’ - “the state of being comfortable, healthy or happy.” By this definition, what constitutes well-being for one person, may look totally different for another. Since March 1st, Fringe saw a huge uptick in demand for food and beverage services on the platform, demonstrating that for many people, easy access to grocery delivery and meal prep services - not mental health apps - are ultimately what support peoples’ overall well-being during this crisis. 

Customize the experience. 

The easiest and most effective way to turn empathy into (benefits) equity is to offer opportunities for choice and personalization. Because we’re all navigating through the pandemic in different ways, employees need to be able to select those services that are the most meaningful to them in the moment. One way to achieve this is to offer employees a marketplace with a variety of different support services and offerings, from which they can pick and choose those that best meet their needs at any given time. 

Offer flexibility of choices (not just more choices). 

It’s not enough just to offer more choices; you must also give employees the flexibility to change services if and when their life situation requires it. After all, if the pandemic has taught us anything it’s that our sense of normalcy can change literally overnight. In times of crisis, events are often unpredictable and so too are our needs. Rather than locking people into 6 month or annual contracts, give employees the ability to pivot when needed. 

Over the last decade, we’ve seen an important shift in the dynamic between employee and employer in which people have begun to personally identify with their place of work. No longer a transactional relationship, today’s employees see their place of work as a figurative “home away from home.” Coincidentally, in the WFH era, the workplace is in fact our home, and one fraught with a diverse range of stressors and circumstances. By taking an equity-first approach to benefits, it shows your people that you care about them - and this simple gesture will help you retain and attract people, not to mention safeguard your business from the financial impact of burnout, for years to come. 

Co-written with Katerina Rodriguez, HR consultant. Article originally published to BenefitsPRO on October 27, 2020.