Do employers really know what’s best for their people?

What happens when employee wellbeing moves beyond perks and benefits to become a core pillar of workplace culture?

In this episode of The Future of Less Work, host Nirit Cohen sits down with Anthony Knierim, Managing Director, Americas at Reward Gateway | Edenred, to explore how the landscape of wellbeing is evolving – and why it’s no longer just about healthcare or gym memberships. Together, they dive into how shifting workforce demographics, shorter employee lifecycles and the rise of the independent workforce are transforming what organizations need to offer, emphasizing the shift from traditional perks to a more integrated approach that focuses on culture and individual accountability.

The conversation highlights the changing incentives for employers, the importance of personalization in benefits and the role of CFOs in managing costs while enhancing employee engagement. The discussion also touches on the consumerization of health and wellness, the impact of demographic shifts and the future of work in relation to employee expectations and choices.

In the conversation “Do Employers Really Know What’s Best for Their People?”, Nirit Cohen and I delve into the evolving landscape of employee wellbeing and the role of employers in shaping it. Is your organization making assumptions about what employees need, or are you treating employees more like customers – allowing them to be at the center of your benefit offering?

In the evolving world of work, it becomes increasingly important to understand employees’ needs and preferences – or, even better, to let them drive decisions on the kinds of wellbeing supports they want access to. But how can you do this and bend the curve on the cost of caring for your people?

Those that have been in this space will know the massive impact of the Affordable Care Act, the COVID-19 pandemic and generational shifts have had on workplace dynamics. Health is increasingly recognized as a critical factor in employee performance, with underlying physical and mental health issues affecting productivity.

According to the U.S. Surgeon General, 84% of respondents said their workplace conditions had contributed to at least one mental health challenge, and employees are grappling with these challenges largely on their own.

In the U.S., where employers have traditionally been the primary providers of health benefits, the shift towards preventative care and lifestyle interventions has complicated this relationship, especially as employee retention rates have decreased and the gig economy has expanded. In the past, it made sense for companies to work with employees on chronic health conditions and request health screening and even blood work, but today those requests are met with skepticism and distrust from the younger workforce. And, with an average U.S. tenure of less than three years for employees 25-34, long-term health support is being replaced by helping employees create a wellbeing lifestyle that aligns with their values.

Millennials and younger make up 75% of the workforce, and they prioritize experiences and lifestyle choices over traditional benefits. Employers must adapt to these changing expectations by providing a range of options. What employees really want is to increase their purchasing power in those areas they are passionate about. These younger employees are willing to spend significantly on wellness and lifestyle products – as much as six times more than Boomers would have, with potentially only rent outpacing that spending in their budgets – and when employers can be seen to align with those values, it's a win for everyone. Using pre-tax benefits, for example, increases employee spending and provides employees with choice, but doesn’t have the equivalent impact to the business’s bottom line. And consider the side benefits of this trend: Unifying the workforce around wellbeing can provide amazing impacts to connection, culture and productivity.

So what is next in the U.S. wellbeing journey?

Employee wellbeing will continue to become more consumer-driven, with individuals taking greater accountability for their health. The boom in wearable technology proves that. Employers should continue to work on a culture of wellbeing rather than merely offering benefits as a checkbox exercise. This cultural shift requires a deeper understanding of employees' motivations and preferences, leveraging feedback, data and flexibility to tailor offerings that genuinely resonate with them.