Employee benefit programs and vendor solutions have often unintentionally created inequity impacting health and financial outcomes
In the rapidly evolving workplace, diversity, equity and inclusion (DEI) are more than just buzzwords — they are integral to fostering a thriving organizational culture and enhancing employee engagement. Lucie McGrath and Valentina Rocchi recently hosted a masterclass at the Rewards & Employee Benefits Association (REBA) Wellbeing Congress 2024, where they discussed how to build a comprehensive roadmap for HR professionals looking to refine their DEI strategies and to ensure they meet the diverse needs of their workforce. This article highlights the key takeaways.
DEI encompasses three critical components: diversity, equity and inclusion. Diversity refers to the presence of differences within a given setting, including gender, ethnicity, age and socio-economic background. Equity involves being impartial and ensuring fair treatment, access and opportunity. Inclusion refers to a cultural and environmental feeling of belonging. It’s about creating an environment where all individuals are treated fairly and respectfully, have equal access to opportunities and resources and can contribute fully to the organization's success. It’s important to distinguish between equality and equity, particularly in benefits provision.
Having a robust DEI strategy is essential. Organizations that embrace DEI report better business results and higher employee satisfaction. This is because diverse teams are more innovative and better at solving problems. In addition, inclusive companies are more attractive to top talent and have higher retention rates, which is crucial in today's competitive job market.
For HR professionals, the implementation of DEI strategies must be thoughtful and intentional and it’s important to consider equity in health and wellbeing programs. Under-served or minority employee groups, while individually small, collectively form a significant part of the workforce. Addressing their needs isn’t just a matter of fairness but is crucial for the overall health of the organization.
The data from our Global Benefit Attitude Survey shows that DEI continues to be a significant factor in employee engagement, recruitment and retention across Europe.
Organizations with higher DEI ratings see better retention rates, particularly among more privileged groups who often benefit from 'equal' benefits programs. However, less than 50% of employees from under-served populations feel their benefit packages meet their needs, indicating a gap that needs addressing.
Emerging trends in wellbeing strategies across Europe show a refocus on traditional physical wellbeing areas, linking them to underrepresented groups and specific individual needs. Advances in digital capabilities are enabling more personalized and tailored benefits experiences, which are crucial for meeting personal needs and enhancing employee engagement.
Employees who understand their health issues and benefit programs, and feel supported by their management, are significantly more likely to take proactive steps to improve their health. This engagement is critical for organizations looking to justify their benefit spend and wellbeing strategies to their C-suite.
Traditional benefits programs often inadvertently create inequities that can affect employees' health and financial outcomes. For instance, the same plan design might not be accessible or affordable for all employees, thereby creating disparities.
To address this, HR professionals must ensure that their benefits offerings aren’t only compliant but also equitable and inclusive. This involves tailoring benefits to meet the diverse needs of the workforce, such as offering different types of leave or retirement contributions that account for varying employee circumstances.
Our 2024 Global Benefits Attitudes Study, which looks at the views of over 45,000 global employees working at medium and large private sector employers, shows that in Western Europe, benefits are more likely to meet the needs of older and higher salaried employees.
Upcoming regulations, such as the EU Pay Transparency Directive, are set to reshape how organizations approach pay equity. By June 2026, all employers within EU member states must comply with new standards that promote transparency in pay and benefits, addressing pay gaps that can’t be justified by objective reasons. This legislative trend highlights the importance of proactive DEI strategies to ensure compliance and fairness in compensation and benefits.
Based on our conversations with HR leaders and looking at our survey results, we can see that organizations are getting prepared for the changes and starting to realize that pay also includes benefits so must be included in pay equity analyses, but there are many who need to move from awareness into implementation to meet the deadline. You can read more in our EU Pay Transparency Directive also impact benefits article.
Looking ahead, organizations should focus on personalizing and communicating benefits programs to support under-served employees. They need to review parental leave policies, leverage captive and multinational pooling strategies for DEI benefits and ensure compliance with upcoming regulations like the EU Pay Transparency Directive.
Some organizations are just beginning to address basic compliance issues, while others are leading the way with advanced, data-driven DEI strategies that are integrated into their core business operations. HR professionals play a crucial role in advancing their organization’s DEI maturity by implementing inclusive policies and practices at every level of the organization.
The journey towards effective DEI implementation is ongoing and requires continuous adaptation and commitment. By focusing on equity, particularly for disabled and under-served employees, and leveraging digital tools for personalized benefits experiences, organizations can create a more inclusive, engaging and productive workplace.
Here are five steps organizations can take now:
We can help organizations review and refine their DEI strategies and supporting policies and procedures to ensure they meet the needs of their diverse workforce. Helping HR professionals to understand where they are now and how they move forward to a place they want to get to.
Get in touch by contacting one of our experts below to find out how we can help understand your needs and create a solution bespoke to you.
Alternatively, watch the full masterclass from the Rewards & Employee Benefits Association (REBA) Wellbeing Congress 2024.
