Employee wellbeing extends far beyond physical health, encompassing mental health, financial wellness, and a sense of belonging. Today’s employees expect workplaces that prioritize support, flexibility, and inclusion. Recent studies by Gallup, Paychex, and EY show that companies addressing these aspects of wellbeing experience higher engagement, lower turnover, and improved productivity. Let’s explore the critical role of mental health and belonging when it comes to fostering employee satisfaction.
The Mental Health Crisis in the Workforce
Mental health is a growing concern in today’s workforce. According to Paychex's 2023 Make Employee Wellness a Priority Guide, almost half of adults will experience a mental health issue at some point in their lives, and 57.9% of employees say work has at least a moderate impact on their mental health. Common workplace stressors include:
- ● Toxic relationships and poor communication.
- ● Inexperienced leadership and unclear roles or expectations.
- ● Unrealistic demands and long, inflexible schedules.
- ● Lack of support from managers and coworkers.
- ● Harassment, favoritism, and discrimination in the workplace.
- ● Repetitive tasks with little sense of purpose or teamwork.
Unaddressed, these stressors can lead to burnout, depression, frustration, and disengagement. The impact on businesses is significant, including reduced productivity, higher absenteeism, and increased turnover. Organizations can mitigate these challenges by providing mental health support and fostering positive work environments.
How Mental Health Benefits Drive Retention
Mental health and wellness benefits are increasingly important in attracting and retaining talent. Paychex's recent study found that:
- ● 60% of employees factor wellness benefits into their decision when selecting a new job.
- ● 80% of employees aged 18-39 will prioritize wellness benefits in their job search.
- ● 66% of employees report feeling better about their employer after using a wellness benefit.
This data highlights the importance of offering accessible mental health resources and wellness programs. Companies that actively promote these benefits not only enhance employee wellbeing but also boost satisfaction, loyalty, and retention.
Creating a Sense of Belonging Through Inclusion and Flexibility
A sense of belonging is a fundamental human need—and it plays a critical role in workplace engagement. According to EY’s 2023 survey, 41% of employees say their workplace gives them the greatest sense of belonging, second only to home. However, 75% have felt excluded at work, and 56% hesitate to share aspects of their identity for fear of career repercussions.
Flexible work policies have proven to enhance employees' sense of belonging. Gallup’s findings show that 76% of hybrid workers report improved work-life balance, and 45% of employees say flexible work arrangements motivate them to promote DE&I within their teams.
How Transparency and Recognition Boost Mental Health and Belonging
Transparent communication about compensation and benefits builds trust and engagement. Mercer’s 2023-2024 study found that employees who believe they are paid fairly are 85% more engaged and 62% more committed to their employer.
Similarly, recognition and meaningful rewards play a crucial role in fostering belonging. SHRM’s research found that 79% of employees would be more loyal if they received more recognition, but 50% feel their performance goes unrecognized.
The Competitive Advantage of Prioritizing Mental Health and Belonging
Companies that prioritize mental health, wellness, and belonging gain a significant competitive advantage in attracting and retaining talent. EY’s survey found that 63% of employees consider a company’s focus on DE&I when deciding where to work, with Gen Z (73%) and Millennials (68%) especially drawn to organizations that promote inclusion.
Providing clear and transparent communication of these initiatives within Total Rewards Statements gives employees confidence that they are valued and supported, fostering engagement and reducing turnover.
Addressing Mental Health and Belonging Through Total Rewards
Employee wellbeing depends on more than compensation, as mental health support, belonging, and inclusive environments are essential. Companies that invest in wellness programs, flexible work arrangements, and DE&I initiatives not only build stronger connections with their employees but also gain a competitive advantage in the job market.
With TRS Express, businesses can communicate the value of their mental health initiatives and wellness programs clearly and effectively through personalized Total Rewards Statements. This transparency builds trust, promotes belonging, and fosters engagement, helping organizations attract and retain top talent in today’s evolving workforce.
