Human Side Employee Benefits

Savvy employers see their employees as more than just “human resources.” They recognize team members are real people influenced by their own experiences, emotions and expectations — including when making career decisions. Keeping their human side in focus, particularly when advising customers on employee benefits, can help employers attract and retain top talent.

That’s because the benefits package offered by an employer can be a deciding factor for potential hires — while also affecting employee productivity, retention and overall company performance. Sprinkling medical and life insurance with a basic retirement plan is no longer enough. Today’s employees expect comprehensive benefits that address their mental, financial and digital well-being.

By proposing a benefits strategy focused on the human element of employees, benefit brokers can help employers harness the motivations, preferences and passions of team members to help reach their business goals.

Why employee benefits strategies are changing

As unemployment rates remain historically low, employers are competing for qualified employees. In such competitive job markets, offering a robust benefits package has proven an effective way for employers to attract and retain valued team members.

This competition has been amplified during the past five years as employees place greater value on their time — focusing on their quality of life and work-life balance. They want to feel valued and supported in their positions. In fact, the 2024 State of Workplace Empathy Study from Businessolver revealed 52% of non-executive employees [OC1] [HP2] would take slightly less pay to work for a more empathetic employer.

As a result, workers are evaluating the cultures and compensation packages of potential employers in the way employers historically assessed new hires. This new reality means employers are considering innovative approaches to their employee benefit programs, expressing interest in solutions designed to safeguard the overall well-being of team members.

In fact, a recent TransUnion focus group with benefits brokers revealed 69% of business clients were most concerned with delivering competitive benefits packages — with four out of five employers expanding their overall wellness-related benefit offerings.*

Understanding this shift creates opportunities for brokers to pivot from cost concerns to more strategic conversations that help employers find (and offer) greater value in a robust benefit program.

Creating holistic employee benefit programs

In noting employers are exploring a greater number of benefits, the focus group confirmed business customers are prioritizing non-traditional solutions aimed at supporting employee well-being. When advising employers on how they can enhance their offerings, a few highlights stand out, including:

• Mental health support: A critical component of an employee’s well-being, the focus group reported mental health support was the second most requested benefit two years in a row, with 75% of employers inquiring about mental health benefits. These measures can include counseling, stress management programs and mental health days to support their employees.
• Financial wellness: The stress of paying bills and reaching savings goals can be a major distraction. Providing financial education, such as budgeting tools, credit education and credit management solutions, can help employees learn to better manage their finances. The focus group reported financial wellness coaching was one of the top five benefits requested last year.
• Identity theft protection: Data breaches and cyber threats continue, which is why more than half (57%) of consumers reported identity theft as their greatest cyber concern. Companies increasingly recognize stolen employee data also introduces risks to the organization. Offering identity monitoring and resolution support not only provides employees peace of mind, it can help improve the organization’s security posture.

Considering design in benefit strategies

When selecting solutions or developing a benefits portal, it’s important to view things from the employee’s position as a user. That’s because offering the right solution doesn’t work if it’s not delivered in a way employees can use it.

As trusted advisors, brokers can help employers evaluate potential benefit solutions from a design standpoint. This could include asking questions, such as: Is the solution’s interface intuitive so employees can find the information needed to maximize the benefit? Does the portal streamline their abilities to manage their benefits?

Approaching the design of benefits solutions with a human-centered mindset can help fast-track employee enrollment and adoption. Plus, the less time employees spend troubleshooting and managing their benefits, the more time they can spend focusing on their jobs — which increases efficiency and productivity.

What are the advantages of holistic benefit packages?

Taking a holistic approach to employee well-being not only helps employee recruitment and retention, it also enables team members to thrive in their current roles.

Human-centric benefits programs that address the mental, financial and cyber well-being of employees, for example, prove effective in helping reduce stress and increasing employee engagement, satisfaction and contentment. While supporting employees is always good practice, there’s also a business benefit to doing so since happy workers are 12% more productive. Similarly, a healthier, less-stressed workforce can lead to lower healthcare costs and reduced absenteeism.

Given those advantages, benefits brokers should be able to easily explain to their business customers why a human-focused approach to employee benefits programs is worth the investment.

Avoid the blind spot of the “just employees” lens

When developing an employee benefits plan with a business customer, viewing team members solely through an “employee” lens can create blind spots, ignoring needs and preferences that may be central to their motivations. Keeping the “human” aspect of “human resources” top of mind can help ensure employee benefits are not viewed strictly as a cost center but rather a strategic investment in the organization.

Offering a robust benefits package designed to address the full spectrum of employee needs can position a broker’s customers as employers genuinely committed to unlocking the full potential of their team members.

Interested in adding personalized and interactive services that can enhance your customers’ benefits packages? Our suite of TruEmpower™ solutions can help.

* TransUnion surveyed 65 employee benefit brokers during November and December 2024.