'Benefits experts outline what wellness perks entail and the growing need among employees
Priorities around modern employee benefits are changing.
Wellness perks are what Koula Vasilopoulos believes are coming into the fold and reshaping current benefits offerings.
“I see perks being a little bit different. Perks are things that employees are looking for, like employee discounts with large organizations or large retailers,” the senior managing director at Robert Half explained.
Wellness perks can include everything from workplace flexibility, discounts on health-related services, gym memberships, EAPs, and in-person get togethers.
While traditional perks like retirement savings and health insurance remain crucial, employers are increasingly being pushed to offer wellness-focused benefits, like on-site fitness facilities, wellness challenges, or subsidized gym memberships that go beyond what’s already expected.
“Wellness perks are very important and certainly are appealing for flexible work schedules. Remote work options tend to be highly sought after. They’re really a key thing now for individuals,” she added.
At its core, wellness perks are anything that encompasses employee wellbeing. That’s not to say they’re replacing current mental health and wellbeing benefits entirely.
Rather, wellness perks are seen as complementing traditional benefits like health insurance. This marks a departure from previous years when employers could rely on a standard benefits package to attract talent, noted Vasilopoulos.
Now, organizations need to show they are serious about workplace wellness, not just through insurance coverage but by creating an environment where employees feel supported daily.
“It comes down to attraction and retention, because if you’re not able to provide what employers are looking for, they have choice,” she said.
Pam Martin, benefits consultants at Baynes & White Inc., compared wellness perks to wellness accounts – or health spending accounts (HSAs).
“Baby boomers have always been content with their traditional benefit plans, but when you add in the millennials and everybody after that, they don't want to be told ‘This is what your plan covers,’ she said, noting that employees want to spend their money the way they want to.
“Sometimes they want the best of both worlds, so they want a traditional plan and the healthcare spending.”
Martin explained HSAs are often set up separately from traditional health benefits plans. The money then spent from them is considered a taxable benefit for employees.
She said employers can give their employees $1,000 for health care spending while giving $500 for a wellness account, as an example, giving employees more control and flexibility over how they use their benefits dollars.
"It gives them extra money to spend on what they want to spend it on, and the employer knows exactly how much they've allocated per employee,” Martin noted.
“We're seeing more organizations really taking the time to understand what’s important and valuable for their employee group and then being able to provide some sort of a package that will be able to address some of it,” said Vasilopoulos.
“It's not always going to exactly align, but for the most part, these are things that I think employers are becoming more mindful of.”
Vasilopoulos also pointed out that workplace wellbeing goes beyond formal benefits. Small changes, like offering quiet spaces for relaxation or encouraging employees to take mental health breaks, can make a significant difference.
Wellness-focused workplaces aren’t just “feel good” initiatives, studies show they have tangible business benefits. When employees are overworked, stressed, or unsupported, productivity drops, absenteeism rises, and turnover increases.
“The cost is much more significant to not do that. You may not feel it immediately, but it will have an impact on you down the road,” Vasilopoulos warned.
“It really is all about intentionality. Nothing is going to happen unless you make it happen,” she said, emphasizing that employers ultimately need to be proactive in creating an environment where employees feel supported.
“Employers need to determine what it is they want for long term outcome.”
All these trends have been accelerated by the pandemic, which forced businesses to reevaluate how they support employees. And workplace flexibility, once rare, is now an expectation.
“We now live in a world where employees and employers recognize that it’s possible. What it looks like for each organization or each role might vary, but it wasn’t a topic we spoke about prior to 2020,” she said.
Vasilopoulos highlighted that remote work has since been drastically reduced as employees opt for more hybrid options, wanting more in-person initiatives from their workplace while still being able to work from home.
This means employers have a chance to get their teams together, even if it’s participating in community service initiatives.
“That’s one of the things that make people feel most fulfilled; when they’re together and giving back to those in need,” she said.
“Employers need to be constantly promoting wellbeing in the workplace. It’s something they’re doing more of, but it needs to be reinforced through actions, behaviours and communication,” Vasilopoulos added.
