A comprehensive benefits package can provide tangible support for improved “holistic health”: the sum of an employee’s financial, mental, social, and physical health.
By Missy Plohr-Memming
According to a new study from MetLife, U.S. workforce health, productivity, and engagement are on the decline as employees struggle to navigate increasing social and economic instability.
How is an environment of stressed-out, disengaged workers impacting key HR and talent outcomes? And how can HR teams proactively address employee needs to provide support and mitigate the impact of external stressors? Fielded to provide a window into the overall health and well-being of employees, MetLife’s 23rd Annual U.S. Employee Benefit Trends Study aims to answer these questions and more. Here are some of the top findings.
Employees cite rising medical costs (77%), economic uncertainty (68%), emerging technology, and AI (59%) as their primary sources of stress.
Employee Holistic Health in Decline
According to MetLife’s study, just 39% of employees claim to be holistically healthy—the sum of an employee’s financial, mental, social, and physical health—a 5% drop from 2024. Along with falling holistic health, employees are also exhibiting lower feelings of success, happiness, and value at work.
Consequently, HR outcomes are also declining as employees report lower levels of productivity, loyalty, and job satisfaction year-over-year.
Much of this decline can be attributed to economic concerns. At the top of the list, employees cite rising medical costs (77%), economic uncertainty (68%), emerging technology, and AI (59%) as their primary sources of stress.
When an employee is struggling financially or exhibiting angst about the future, it can be difficult to concentrate on the task at hand or feel fulfilled in their current position. And while there are forces outside of work that seem impossible to control, HR can play a significant role in providing support and a sense of stability to employees.
What’s Trust Got to Do with It?
MetLife’s study finds that trust has assumed a pronounced role in strengthening employer-employee relationships and driving key outcomes at work. Amidst a myriad of external stressors and economic concerns, employees are placing more trust in their employer—in fact, employees are 1.5 times more likely to trust their employer than other institutions like healthcare and the government.
This presents HR leaders with both a challenge and an opportunity, as 81% of employees say they hold their employer accountable for building trust. This puts the onus on employers and HR leaders to ensure that their organization can deliver on their promises, provide transparency, create a social and supportive culture, and provide the right benefits and opportunities that employees depend upon.
When employers establish trust, the outcomes are overwhelmingly positive. MetLife found that employees who trust their employers report feeling 2.9 times more holistically healthy, 1.9 times more engaged, and 1.6 times more productive at work.
The reality is that only 56% of employees claim to work in a social and supportive culture—a 6% decline from last year.
Social and Supportive Cultures are Foundational
To build trust, workplace culture is key. Specifically, MetLife’s study finds that social and supportive cultures set the foundation for fostering high-trust work environments.
These are workplaces where employees feel seen, heard, and understood. As employers, providing a venue for open and honest communication, recognizing and rewarding good work, keeping promises and commitment, and listening and responding to employee concerns and feedback are key to building this type of environment.
The reality is that only 56% of employees claim to work in a social and supportive culture, a 6% drop from last year.
The good news is that when employees are satisfied that they work in a social and supportive environment, they are more likely to trust their employer and feel holistically healthy, which supports outcomes like engagement and loyalty.
Benefits Play a Key Role
In uncertain times, a comprehensive benefits package can provide employees with tangible support and a better sense of control over their holistic well-being. In this way, benefits can also work to build a supportive culture, improve employee-employer trust, and create a better workplace environment.
But as many HR leaders know, providing a strong set of benefits is only the beginning. It’s only when employees use and have a positive experience with their benefits that organizations start to see an outsized return on their investment.
Employers can enhance benefits experiences by optimizing communication strategies, providing personalized guidance, and consistently engaging employees to support year-round utilization.
Doing this has a direct impact on key factors that drive outcomes: Employees who use and have positive experiences with their benefits are 2.4 times more likely to feel holistically healthy; 2.1 times more likely to trust that their employer will protect them in economic downturns; and 1.8 times more likely to trust their employer’s leadership.
The Bottom Line
HR leaders and employers must prioritize building trust through more supportive experiences with company culture and benefits programs.
By doing so, they can help support employees as they navigate stress tied to today’s macroenvironment, mitigating the impact on their holistic well-being, and ultimately fostering a more engaged and productive workforce.
Missy Plohr-Memming is senior vice president and head of U.S. group benefits national accounts at MetLife.
