53% of benefit managers know their wellness programs are failing employees

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Despite a near-universal rollout of wellness initiatives across organizations, the stark reality is that most well-being programs aren't meeting employees' needs.

New findings from Insurope's annual Global Employee Benefits and Multinational Pooling Market Report reveal that while 84% of HR leaders believe wellness solutions have a positive impact on retention, absenteeism and employee satisfaction, many programs are falling short. Poor alignment with company culture, lack of personalization and low engagement were some of the top reasons for the disconnect. 

More than half of benefit managers surveyed acknowledged this disconnect in the wellness benefits their companies offer with how leadership treats employee well-being on a daily basis. This lack of authenticity sends a conflicting message to employees, diminishing trust and decreasing participation in wellness offerings

Read more: What mental health benefits should your company offer?

When wellness is treated as a check-the-box initiative instead of being integrated into the organizational culture, employees are less likely to engage — regardless of the program's quality or scope.

"Today's workforce is highly attuned to whether employers care about their well-being," Fallon Carpenter, head of people and culture at Sentinel, previously shared with EBN. "By offering resources that support whole-person health, companies can enhance their cultural appeal and strengthen their talent retention strategies."  

Low employee engagement remains a top concern for benefit leaders, according to the report,  cited as one of the most common challenges with current benefit offerings. Additionally, 27% reported receiving negative feedback on wellness initiatives, while 22% admitted that their benefits simply don't support all employees. 

These findings point to a fundamental issue: Many wellness programs aren't inclusive or flexible enough to serve a globally and generationally diverse workforce. Without customization or offerings that account for different life stages, health needs and work environments, uptake and effectiveness will continue to lag.

Read more: Paycom's on-site Wellness Center makes well-being part of the workday

Finding workable solutions to employee well-being

Yet employers don't have to search for complex solutions to these issues; simply listening to employee feedback is a good first step. Employees are increasingly vocal about the benefits that would most improve their well-being: According to the Insurope survey, the most requested benefits include health and medical insurance (61%), pension and retirement plans (49%), wellness and mental health services (45%), childcare and maternity benefits (39%), education assistance and career development (40%), and flexible working hours or remote options. 

But wellness programs alone aren't enough — employees want comprehensive, holistic support that spans their physical, financial and emotional well-being. Offering flexible working arrangements and financial wellness programs, for example, also have a significant impact on stress reduction and overall satisfaction in the workplace.

"This isn't just an individual challenge — it's a collective one, impacting team morale, productivity and job satisfaction," said Peter Dunn, CEO of Your Money Line. "This strain isn't just a personal issue; it's a workplace challenge that demands attention." 

Leadership must also model and support well-being from the top down, aligning business practices, communication and managerial behavior with company wellness goals. It's clear that employees don't want one-size-fits-all programs — benefit managers should offer benefit plans that allow individuals to select the services that best match their needs, whether that's telehealth, therapy, fitness, or financial coaching. 

Read more: What employee wellness benefits should your company offer?

Ultimately, well-being initiatives will only have an impact when they are employee-centered, culturally supported and strategically integrated into the broader benefits ecosystem. As companies grapple with rising healthcare costs and evolving employee expectations, it's no longer enough to offer wellness as an add-on. It must be a pillar of the employee experience. 

By reevaluating priorities and listening closely to employee feedback, benefit managers can transform underperforming wellness initiatives into powerful tools for engagement, retention, and productivity — turning good intentions into real-world impact.

"Gathering insights without acting upon them is pointless, and can even prove damaging as employees will feel that they are not listened to and that their views have no value," Ian Barrow, senior employee experience consultant at WorkBuzz, previously shared with EBN. "With valuable new information on hand, the organization can put together action plans, creating a thriving organizational culture that employees want to be a part of." 

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Employee engagement Health and wellness Employee benefits
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