Scott Ragland
Principal, Employee Health & Benefits
The workplace has undergone a seismic shift. Now, employers must navigate more nuances than ever—a four-generation workforce, shifting healthcare priorities, and changing social expectations, among others. These nuances are major driving factors in an employer’s ability to shape a strong workplace culture and competitive benefits plan, which can, in turn attract top talent and foster employee resilience and engagement.
With so many factors in play, it can be challenging for employers to serve all their employees’ top priorities while remaining mindful of the company’s bottom line. One concept that can help bridge the gap? A better understanding of social determinants of health (SDOH).
How social determinants of health affect the workforce
SDOH are non-medical factors that influence health outcomes. They come in many forms: impact of economic factors on daily life; stability of a person’s home environment; ability to afford medical care; accessibility of quality education; and strength of a person’s social circle.
At first, these determinants may seem like personal matters. But they’re workplace concerns, too. Unmet SDOHs are likely to lead to poor physical health, missed days of work, and reported mental health issues, according to Marsh McLennan Agency’s 2024 report on employee health and benefits trends.
Trends shaping employee sentiment and workforce dynamics
The earlier-referenced Marsh McLennan Agency report indicates that the percentage of employees who feel energized at work has fallen from 74% in 2019 to 63% in 2022. The percentage of workers at risk of burnout has skyrocketed from 63% in 2019 to 81% just three years later. Additionally, the report notes that more than two-thirds of employees feel employers bear responsibility for supporting them in stress and anxiety.
Employers must also navigate a four-generation workforce, each with unique needs for a fulfilling career. According to the report, older generations (baby boomers and Generation X) value flexibility, independence, and financial security. Meanwhile, younger generations (millennials and Generation Z) prioritize meaningful work, with Gen Z focusing on company values and mental health. Both millennials and Gen Zers more commonly identify work-life balance and avoiding burnout as top priorities.
Many factors are foundational to these trends. According to a National Library of Medicine article, SDOHs became more relevant following the COVID-19 pandemic, and the Office of Disease Prevention and Health Promotion reports that these determinants will be a major priority in measuring health and wellness in the coming decade.
With all of these considerations, it’s paramount that employers factor these determinants into their operational playbook. Business leaders can explore SDOH-driven benefit solutions and implement tools to create a comprehensive picture of their workforce’s unique needs.
Ways employers can assess SDOH to build an engaged workforce
The first step in factoring SDOH into benefits plans and a company’s cultural milieu is to identify which determinants most impact the business’s workforce and how they do so.
Companies can routinely conduct confidential surveys and focus groups, partner with third-party community organizations to identify hyper-local or neighborhood factors at play and study data to recognize disparities between demographics.
From there, employers can tackle each high-priority determinant to strategically and cost-effectively cultivate a right-sized plan for their workforce’s specific needs:
- Economic stability: Paying competitive wages and benefits paired with financial literacy or counseling programs can help employees manage finances better, increasing their economic security. Flexible work benefits, like a hybrid schedule, factor into this by reducing commute costs.
- Education access: Investing in employee development and providing opportunities for learning—such as through a tuition reimbursement program or employer-sponsored professional association membership—can boost employee confidence and help employers cultivate a high-quality workforce.
- Healthcare access: Offering comprehensive health insurance plans, mental health services, and wellness programs—such as stress management workshops—can address employees’ physical and mental health needs. Employers can provide these benefits to proactively help stave off productivity killers like burnout.
- Neighborhood and built environment: Collaborating with other businesses in the area and community organizations can help employers target and pool their charitable efforts, potentially making a stronger impact on the community and the employees who live there. This can also boost a company’s reputation within that neighborhood and deepen the pool of local candidates.
- Social and community context: Fostering a positive, social, and inclusive work culture can enhance connectedness and reduce isolation. Encouraging employee-led resource groups can give those lacking a strong social circle a sense of belonging, develop organic mentorships between experienced employees and newcomers, and build camaraderie.
How prioritizing employee wellness enhances business outcomes
Long-term, those upfront costs can be recouped in the form of better employee engagement, improved retention, higher-quality talent, and return on investment in health spending— ultimately leading to a more successful business and a sought-after workplace culture.
Marsh McLennan Agency’s team helps companies of all shapes and sizes determine the best business insurance, employee health and benefits, retirement, and private client insurance solutions for their needs. Connect with a Marsh McLennan Agency representative to explore how we can help your business.
