How are social determinants of health affecting your benefits?

The key to getting the most from employees while they're at work is to help them manage all of the challenges they may be facing outside of the office.   

Fifty-nine percent of employers plan to expand their efforts in addressing social determinants of health (SDOH) in the coming  years, according to  Business Group on Health. This means investing in benefits that target healthcare needs outside of the traditional medical offerings, such as food, housing, transportation and education.  

"There are non-medical factors that are influencing employee health outcomes including where you were born, where you live and how you learn," says Sarah Liebel, COO of AI-powered benefit insights platform Nayya.  "I like to say that employees' area codes are just as important as their genetic code."  

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Social detriments of health are estimated to drive between 30-50% of health outcomes, according to recent research from healthcare insight and clinical data site Veradigm, compared to clinical care, which only impacts around 20% . This gap is due to the simple fact that without access to basic human needs, employees cannot prioritize their physical or mental needs. Researchers estimate that in the U.S., failing to address social detriments of health could be responsible for up to 40% of preventable deaths.

Workplace impact of SDOH

Within the benefit space, SDOH factors impact the full employee experience, according to Liebel, from which benefits to offer to how employees engage with them. For example, if employees don't have a safe and reliable way to get to work, whether due to financial limitations or a lack of public transportation, it not only affects their performance at work, but their mental health, too. Offering commuter benefits or rideshare capabilities could change that.

Another obstacle benefit leaders seldom take into consideration is how they're distributing their benefit information to employees and whether it's easy to understand for everyone.  

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"Most companies hand out a 300 page PDF file and say 'good luck,'" Liebel says. "But there are literacy differences and gaps within organizations, so how are they supposed to all pick the right plan for them? That's where SDOH benefits come in." 

In order to address any potential education gaps, leaders should be offering informational resources along with benefit offerings. This means developing guides that explain different plans and investing in technology that can help employees navigate their benefits. Nayya, for instance, partners with organizations and uses employee data — such as their salary, their location and their mode of transportation — to recommend the right benefit selection for any individual.

How to make SDOH-friendly benefits

Fortunately, most organizations are already expanding their approach to wellness programs and benefits and adding solutions that inherently tackle many SDOH factors. However, Liebel still urges benefit leaders to continuously push the boundary of traditional benefits. This means taking into account things like tuition assistance and reimbursement programs for non-degree credentials like GEDs, and having on-demand care or telehealth options to keep healthcare as accessible as possible for employees wherever they are. Financial counseling, ERG groups and caregiving services can also improve employees' experience and keep them engaged and productive.    

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"Leaders need to understand what the construct of SDOH is and how it contributes to overall employee health and productivity," Liebel says. "They need to be able to name it and identify what their benefits are and how they do or don't support the SDOH framework." 

In order to identify which SDOH areas an organization needs to focus on, employees need to feel comfortable disclosing where they are struggling the most outside of work. This means that the first step for any organization is to be as open and communicative with employees in order to build a safe and supportive environment where they feel empowered to share.  

"We need more data to be able to offer more personalized services and to do that we need trust for employees to want to share that information," Liebel says. "We need to achieve better connectivity and understanding because the more leaders know about employees they're serving, I think the more diverse the offerings that they can create."