Employer Support Has a Direct Impact on the Health and Resilience of Employees, According to a Mercer Survey

• The pandemic has had a material impact on the mental, financial and physical health of employees.
  • Over half of US employees report feeling some level of stress in the last year, nearly one fourth say they experienced mental health issues such as depression or anxiety, a fifth are financially worse off, and nearly a fifth feel less physically healthy or fit.
• However, 53% of employees feel their employer has provided good support during the pandemic – and, compared to those who have received little support, they are less likely to have experienced the pandemic’s impact as mostly or entirely negative.
• 45% of employees who feel they have received good support from their employers during the pandemic say they are less likely to leave their company as a result.

As the pandemic continues to unfold, the ability of employers to have a positive impact on employee health and resiliency cannot be understated and is one of the most important findings of the latest Mercer “Health on Demand” survey released today. Since the onset of COVID-19, when employers stepped up to provide essential support, it made a difference. Employees who say they received good support from their employers are much less likely to view their personal experience of the pandemic as mostly or entirely negative compared to those who received little or no support – 25% vs. 49%. And almost half (45%) of those receiving good support say they are less likely to leave their job as a result.

“With significant shifts in attitudes towards mental health, sustainability and digital healthcare over the last year, employers must evolve their health strategy to reflect a modern workforce that prioritizes flexibility, choice, a caring culture, and digital access to support their health and well-being.”

Survey results confirm that the pandemic has had a material impact on the mental, physical and financial health of employees. Over half of US employees feel some level of stress in the last year; nearly a fourth of US employees say they experienced mental health issues such as depression or anxiety; a fifth are financially worse off; and nearly a fifth feel less physically healthy or fit. Low-wage earners were more likely to experience each of these negative impacts – and less likely to feel supported by their employers during the pandemic. These findings reinforce that employers have room for improvement when it comes to understanding the diverse needs of their employees and providing resources to support the well-being of the entire workforce.

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“There is nothing more important to the health of a business than the health of its people and the communities in which that business operates. COVID-19 challenged our global healthcare system, but the ability of employers to have a positive impact on employee health and resiliency is one of the most important findings from our 2021 Health on Demand survey,” said Martine Ferland, President and CEO, Mercer. “The research is clear – employers that place health and humanity at the center of business transformation will build a more energized and adaptable workforce that is better able to persevere through periods of crisis.”

The 2021 report lays out several key findings and implications for supporting employee health and well-being:

Provide varied and valued benefits: Well-being is at the core of an employee’s relationship with their employer. The amount of support, type of support, and ability to personalize that support matters. The ability to customize a package of benefits to meet individual needs is highly or extremely valued by 55% of employees. Variety matters as well: the more benefits and resources that are offered, the more likely it is that each employee finds something of value. Of employees offered 10 or more health and well-being benefits or resources by their employer, 52% say that their benefits are a reason to stay with their company, compared to only 32% of those offered 1-5 benefits or resources. In addition, employees receiving 10 or more benefits are more confident that they can afford the healthcare they need – and more likely to agree that their employer cares about their health and well-being.

Enable digital access to healthcare: COVID-19 necessitated that healthcare be delivered in different and innovative ways. One-fifth of employees used telemedicine for the first time during the pandemic, and another 23% increased their usage. Of those trying telemedicine for the first time, the great majority – 72% – intend to keep using it. The survey also registered a sharp increase in employee interest in other digital health solutions, ranging from apps that help find healthcare providers to virtual reality tools for self-care. Compared to the 2019 Health on Demand survey, a greater percentage of employees in the 2021 survey found digital solutions to be highly or extremely valuable. The ability to access care virtually has gained momentum and become a valued option for employees. Survey results reinforce that employers need to plan for a future in which most healthcare journeys include virtual visits and digital healthcare supports.

Reduce stress and anxiety: Notably, US employees are more stressed than those in many other countries. While 59% of US employees say they feel some level of stress, one-quarter report being highly or extremely stressed. That’s the highest percentage of the 13 countries included in the survey. In the UK, for example, only 16% of employees feel highly or extremely stressed. With 48% of US employees rating employer support for mental health as highly or extremely valuable, employers that provide robust mental health and counselling benefits will foster greater loyalty and create a stronger bond with their employees. However, 40% of employees say it is difficult to find and access quality mental health care. It’s even harder for some employees: among low wage earners, that number rises to 47%. Employees identifying as LGBTQ+ place the highest value on employer support for mental health – 61% say it is highly or extremely valuable, but nearly as many (58%) say quality mental health care is difficult to find and access.

Clearly, employees have unmet needs when it comes to mental health care. Half (49%) of all US employees say that programs that reduce the cost of mental health treatment are highly or extremely valuable. Employers looking to provide affordable mental health care support should note that many employees would highly value virtual counselling via video chat with a therapist (42%), virtual counselling via text with a therapist (38%), and even virtual mental health advice via AI-powered text chats, with no human involved (31%).

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Tackle healthcare inequities: Healthcare inequality persists, with higher-earners better able to access medical coverage, income protection and mental health counselling than low-earners. Participants with household income (HHI) at or below the US median are significantly less likely to feel confident they can afford the healthcare their family needs (60%) than those with HHI above the median (83%).

Unfortunately, the people who need support the most are the least likely to receive it. Those with HHI above the median reported having better access to benefits through their employers: the survey revealed a gap of 21 percentage points in access to employer-sponsored medical coverage between those with HHI at or below the median and those with HHI above the median and a 19-point gap in access to life insurance. Employers should consider a strategy that targets benefits to the groups that need them most. In a time of labor shortages, a strategy for achieving greater equity may also give employers a competitive advantage.

“Every good leader knows that when employees feel they are treated well they are more likely to stay, be engaged, and flourish,” said Kate Brown, Mercer’s Center for Health Innovation Leader, “With significant shifts in attitudes towards mental health, sustainability and digital healthcare over the last year, employers must evolve their health strategy to reflect a modern workforce that prioritizes flexibility, choice, a caring culture, and digital access to support their health and well-being.”

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