Mental health benefits rank highly among younger workers, survey finds

A majority of Generation Z and millennial workers say it’s “very important” for their employers to provide them with mental-wellness benefits, according to a survey by Securian Financial.

Fully 73% of Generation Z employees and 74% of millennial employees have utilized mental health benefits offered by their employers, the survey said. This is in contrast to the 58% of Generation X employees and 49% of baby boomer employees who have used the benefits.

“Addressing mental wellness in the workplace has never been more crucial,” said Darin Reeser, a Securian Financial regional director for supplemental health benefits. “With burnout and the Great Resignation still in our midst, better understanding employee needs, expectations and concerns around mental wellness is pivotal.”

More insights from the survey include:

• Generation Z expects access to mental-health services and any historical barriers to access to be fixed. Leveraging mental-wellness resources is normalized for this generation.
• Millennials were raised to believe that mental-health challenges are problematic but fixable.
• Generation X recognizes that access to mental -health services can be problematic but just tries to get through it.
• Baby boomers were taught to tough it out and not talk about mental-health challenges.

These findings have several implications for employers, the survey said. “Mental wellness benefits are crucial for every generation. But because these benefits are expected from Gen Z and millennials, employers should recognize that to attract and retain young talent, they must provide easily accessible mental wellness resources,” said Reeser.

The top five mental-wellness benefits

According to the survey, the top five mental-wellness benefits of participants through work are:

• Mental-health coverage through medical insurance: 70%
• A set number of free counseling sessions (Employee Assistance Program ): 57%
• Virtual counseling: 49%
• In-person counseling (outside work): 41%
• Grief support: 41%

The top five mental-wellness benefits used by participants who have them are:

• Mental-health days off: 54%
• Subscriptions to meditation/mindfulness classes or apps: 39%
• Workshops or seminars that focus on mental wellness: 35%
• Mental-health coverage through medical insurance: 34%
• Financial-planning seminars or counseling: 34%

“Employers should explore which mental wellness benefits are expected from their employees and consider expanding the variety of benefits if there is a disconnect between what they offer and what employees want,” said Reeser.

“Our survey found that while only a little more than one-third of employers offer mental health days off, many employees—particularly Gen Z employees—say it is the most important mental wellness benefit,” said Reeser.

The financial and mental wellness connection

An additional finding that is worth noting is the effect of financial wellness on mental wellness. Sixty-five percent of all employees surveyed said their financial wellness has either an “extreme impact” (26%) on their mental wellness or a “large impact” (39%). And 48% of Generation Z said that their financial wellness has an “extreme impact” on their mental wellness.

“The impact on mental wellness is strongest when financial pressure is highest,” said Reeser. “On the flip side, employees report better mental health when their financial situations are manageable and they’re on track to meet long-term financial goals. This speaks to the importance of employers having a financial wellness program in place for employees. It’s a new era, and traditional benefits are no longer enough.”

Barriers to using mental-wellness benefits

Even if employees are offered mental-wellness benefits, many are apprehensive to use them, the survey said.

Here are some of the barriers among the 38% of employees who said they have not used any of their workplace, mental-wellness benefits, according to the survey:

• 67% of employees say they haven’t used any mental-wellness benefits because they feel they don’t have serious enough issues to use the services. Employees undervalue the versatility of the services provided and feel they are only for the most urgent needs.
• Misconceptions that employers know when an employee uses mental- wellness services and corresponding concerns about professional backlash prevent utilization of benefits. 21% of Generation Z employees who haven’t used mental-wellness benefits cite concerns about confidentiality.
• Younger employees are overwhelmed. While open and eager to use mental-wellness benefits, many Generation Z and millennial employees are too overwhelmed to take advantage of them, especially when they’re needed the most. Burnout further dissuades them, as it causes a lack of time and energy to use the benefits.
• 21% of Generation Z and 20% of younger millennial employees who haven’t used mental- wellness benefits say they don’t have enough time in the day to use them.

Securian Financial conducted a survey of 2,500 employees of American organizations  Aug. 30-Sept. 9, 2022.

Ayo Mseka has more than 30 years of experience reporting on the financial services industry. She formerly served as editor-in-chief of NAIFA’s Advisor Today magazine. Contact her at [email protected]. 

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Ayo Mseka has more than 30 years of experience reporting on the financial services industry. She formerly served as editor-in-chief of NAIFA’s Advisor Today magazine. Contact her at [email protected].