Over the past several years, the pandemic and its wake have helped bring the mental health of the workforce to the forefront. Often, that mental health could be better. Almost half (49%) of employees feel a sense of dread at work at least once a week, according to our Workforce Attitudes Toward Mental Health report.  

That stat is one among many from the report that show why it’s more necessary than ever to offer programs that help ensure the emotional wellbeing of employees. At the same time, inflation has impacted the bottom line for many businesses, which has forced many organizations to contemplate cutting these newly appreciated mental health benefits. 

As 2024 approaches, this tug-of-war has left HR professionals working to balance many obligations that include continuing to deliver necessary benefits, holding down costs, and proving the ROI of mental health programs. 

Against that backdrop, here are five trends that we think will help define 2024 for HR and benefits professionals. 

1. Inflation is impacting healthcare costs for employers, meaning benefits leaders will face an increasing burden to demonstrate ROI for benefits.

In the wake of the pandemic, inflation has had a broad impact on the economy, and healthcare has been no exception. In 2023, employers expected an increase of 5.4% on top of a 3.2% increase in 2022, according to Mercer’s 2024 health and benefits report. “Employers need to be ready for accelerated cost growth in 2024 and beyond,” the report advised. 

To prevent cuts in healthcare service, human resources and benefits managers will need to demonstrate the value of their healthcare and mental health programs. Proving ROI requires data. Organizations must examine whether their mental health programs are, for instance, leading to increases in productivity.

“We really need to lean into that data to prove out the ROI of these benefits,” said Karan Singh, Chief Operating Officer and Chief People Officer, Headspace, in a recent Headspace webinar. He added that a recent peer-reviewed study found “close to an average increase of three healthy mental days per employee per month, after just one month of using the (Headspace) product, which I think is really meaningful.”  

2. Traditional EAPs are no longer meeting the mark. As employers seek solutions that have definitive value, more comprehensive, innovative solutions are key.

HR professionals value employee assistance programs (EAP), which are designed to help employees address issues before they negatively impact their home and work lives. About 67% of respondents to Mercer’s 2023 health and benefits report said they had taken steps to improve their EAPs or planned to do so. 

However, a persistent problem with EAPs has been low utilization by employees. Nonetheless, the availability of more innovative EAPs, which offer easy access to a variety of resources and types of care, can be extremely helpful for addressing employee mental health issues before they escalate.

‍“You see such a difference in employees who have direct access to mental health care.” —  Hannah Astrachan,  Director of Global Benefits, Buzzfeed

Ensure that your EAP provides a range of options — including short articles on how to handle stress to tips on meditation to direct access to therapists — for employees to address mental health issues in the earliest stages.  

3. As benefits leaders face increasing burdens, vendor consolidation serves as a way to streamline benefits, which can be beneficial for both employees and HR teams.

The average self-funded employer engages with 16 different health and wellness vendors, according to a recent story in EBN. Unfortunately, the result for many employees was a disjointed experience and confusion on how to access resources. 

During COVID, organizations strived to do whatever they could to address the mental health of their employees, which sometimes included adding several different point solutions. While the intent was good, the result often led to confusion. Ultimately, having a variety of tools can lower engagement, as employees may be unsure where to turn to for support.

“Making sure that the front door is as easy and as approachable and as stigma-free as possible will actually increase utilization rates,” Singh said.  

Recognizing the balance between limiting confusion and offering necessary benefits, Astrachan said, “I think when it comes to at least for Buzzfeed, a bigger priority than streamlining and consolidating would be ensuring that we're filling gaps and we're providing employees with the resources and care that they need.”

Strike a balance between ensuring you have the programs your employees need but making sure the offerings are easy to access. Think simple but scalable. 

4. Different generations of workers are demanding different support — solutions must meet the needs of all.

Today, there are five generations in the workforce, and each has a different perspective when it comes to mental health at work. A recent Gallup survey indicated that different generations assess their own mental health conditions in different ways. More than one-third (36%) of Gen Z respondents described their mental health and emotional wellbeing as “poor” or “only fair.” Just 14% of the Silent Generation described themselves in the same way. It is, however, difficult to discern whether Gen Z is simply more comfortable or more honest when discussing their mental wellbeing. 

In addition, younger generations are more eager to hear conversations about mental health in the workplace. 52% of Baby Boomers are indifferent about leaders talking about mental health, but nearly half of Gen Z (47%) and more than half of Millennials (51%) wish their leaders would talk about their emotional/mental health.

“The younger generations — Millennials, Gen Z — they're a lot more open when it comes to only approaching mental health,” said Astrachan, who added: “The older generations, I think, are just not as accustomed to speaking about it out loud.”

For benefits managers, the differing attitudes toward mental health require that their health benefits accommodate all of these generations and their outlooks.  “We think about the benefits we’re offering really needing to make sure that we're able to provide a wide spectrum of need  — everything from, call it a Gen Z that maybe is more comfortable with texting with a coach all the way to other generations that may prefer video appointments or in person. That's a really wide spectrum of access points,” Singh said.

There is no one size fits all for everyone.” — Karan Singh, Chief Operating Officer and Chief People Officer, Headspace

Pressure test your mental health programs to ensure that they offer entry points to accommodate generational preferences.

5. Employees and employers alike are finding value in innovative care delivery models — and innovative payment models.

With the COVID-19 pandemic and the increase in demand for virtual mental healthcare came the need for more innovative care models that could support more people, more effectively. As a result, care models that leverage multiple modalities of virtual care – like Headspace’s text-based behavioral health coaching and video therapy and psychiatry – proved valuable for members and employers alike. Since many people have mental health needs that can be addressed by self-care content or coaching alone, these models enabled more people to get access to the most appropriate care for their needs, and reserved clinical care for those who truly needed it. 

The key with these innovative care models is optionality – when members are able to access care in the way that feels best for them (be it through content, text-based coaching, or virtual or in-person clinical care), it helps make care more approachable. And, collaborative care models mean that coaches or clinicians can connect members to other resources – ensuring that each person gets what they need.

And, when it comes to payment innovation, many human resources professionals are embracing a value-based approach to mental health benefits. The value-based philosophy focuses on the quality of care, the performance of the healthcare provider, and patient experience. 

As we see this continued movement, we’re seeing an emphasis on health outcomes and healthcare cost savings success metrics, which is critical for our common goal of helping employees get the right care for their needs and live healthier, happier lives. 

More employers and health plans are showing interest in solutions that are willing to guarantee performance or go at risk. In fact, McKinsey estimates that the number of patients receiving value-based care could grow 100% over the next five years. 

It is not enough to simply drive engagement. Solutions need to drive the engagement that will help members feel better and ultimately cost less. This is a great opportunity to align with our common goal of improving outcomes, which ultimately reduces healthcare costs as well.

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For an in-depth discussion of these trends that will shape 2024 (and beyond) for human resources and benefits professionals, watch our recent webinar on-demand: “Mental Health at Work: 2024 Trends and Predictions.” Or contact us to learn more about how Headspace can support your organization.