Most Employers Will Enhance Services to Improve Employee Wellbeing

Nearly nine in ten employers plan to adjust their vendor partnerships over the next two years to improve employee wellbeing benefits, according to a survey from Willis Towers Watson (WTW).

The survey reflected responses from 232 US employers who employ 3 million workers.

“High-performing health and wellbeing vendors are now vital to employers. They have become a critical component of competitive benefit and wellbeing programs and strategic to their portfolio,” Courtney Stubblefield, senior director of WTW, said in the press release.

“However, in an effort to meet the needs of their employees and improve worker health, employers are taking a close look at the value and cost savings their vendors promise. What’s more, they are ready to make changes as needed.”

Employers typically work with vendors to improve employee experiences, address workforce wellbeing, further recruitment and retention goals, and reduce medical claim costs, according to WTW.

Eighty-eight percent of employers reported they are planning to make changes to their health and wellbeing vendor partnerships this year or next year. Changes included adding, enhancing, or ending certain solutions and services or collaborating with a different vendor in the future.

Almost half of respondents (46 percent) said they have already made changes to their vendor partnerships in the last year.

Among employers that offer wellbeing programs and services that address physical, emotional, social, and financial wellbeing, 55 percent plan to make changes. Twelve percent of employers made changes to these services in 2022.

Most employers (84 percent) offering wellbeing programs said they will add or enhance solutions rather than change their current vendor partner (23 percent).

Over four in ten employers (42 percent) intend to adjust their point solutions for clinical conditions, including diabetes, musculoskeletal disease, maternity, and fertility, while 24 percent have already made changes.

Similarly, 37 percent of respondents reported plans to change their mental health solutions, and 24 percent have already done so. These services include employee assistance programs and other clinical and pharmacy solutions.

Employers are more likely to add to their current mental health offerings rather than switch to a new vendor, the survey found.

Forty-three percent of employers with digital platforms, such as digital hubs and health information portals, have plans to change them in the next two years. Four in ten employers also reported plans to adjust their navigation and advocacy programs, which provide clinical guidance and expert medical opinions.

Employers also reported plans to change their ancillary benefits like vision and voluntary benefits (36 percent), core benefits like dental, disability, and life insurance (35 percent), their medical carrier (25 percent), and their pharmacy benefit manager (23 percent).

Mental health is the top priority for employers when it comes to improving their vendor solutions, with 30 percent of respondents prioritizing this space as they plan for 2024. General wellbeing ranked second, with 22 percent of employers planning to focus on this area, followed by navigation and advocacy (14 percent) and musculoskeletal (9 percent).

Financial wellbeing was the fifth most common area employers plan to focus on for vendor solutions over the next two years.

Most employers looking to change vendors are looking for partners that can address a broad range of needs and integrate with existing vendors. Nearly 80 percent of respondents want a vendor partner that will guarantee a return on investment (ROI).

Additionally, as employers report challenges with employee engagement, they plan to customize communications (78 percent), distribute vendor materials (66 percent), and communicate with employees beyond the open enrollment period (62 percent).