3 Ways Nonprofit Leaders Can Boost Worker Well-Being & Mental Health

the one minute takeaway

After three years of health and economic disruption, nonprofit workers continue to strain under the pressure of supporting a struggling population. Executives can prevent burnout and turnover by providing benefits that promote staff well-being without breaking the bank. Here’s how.

Amid a global pandemic, record-breaking inflation and more than three years of uncertainty, workers are experiencing workplace fatigue and need support. In the human services and nonprofit sector, one in 10 employees reported feeling overworked and under-resourced, with 30% saying they are burnt out and 20% admitting they are close to it.¹

Financial pressures are increasingly distracting workers, too, with nearly a quarter worrying about their finances each day, and fewer than half confident that their retirement savings will last throughout their lifetime.²

With nonprofit services in more demand than ever and an ever-increasing need of skilled workers, organizations that provide robust benefit packages and employee assistance programs (EAPs) can help attract and retain workers and equip them with the tools they need to succeed.

Three benefits are crucial to retaining talent and promoting a productive and healthy workforce: EAPs, voluntary benefits and retirement help. While expanding benefits offerings sounds expensive, finding donor partners, offering less-expensive add-ons and providing financial education can help organizations improve workforce well-being within budget. Organizations should:

Seek partners interested in mental health to expand EAPs. EAPs offer a variety of health and wellness benefits not covered by traditional health plans, including mental health services, financial counseling and nutrition advice. These programs are typically modest investments for the employer — in line with the cost of a dental or vision plan — yet can transform the employee experience by supporting the mental health of workers and their families, thus strengthening the organization as a whole.

An effective EAP will complement an organization’s health plan and include barrier-free access to mental health services, including counseling sessions, mental health training, emergency resources for workers and legal and financial counseling.

Nonprofits implementing more robust EAPs may be able to offset costs by targeting funding partners interested in employee mental health initiatives.

Offer elective benefits. As health plans get more expensive, more organizations are opting to add voluntary benefits, which allows nonprofits to layer elective benefits onto the employee experience at a lower cost.

Additions such as accident or critical illness can create goodwill and relieve employee financial stress, and are often inexpensive when offered at group rates. Other voluntary benefits such as pet, travel and car insurance help satisfy nonprofit employees’ lifestyle needs.

Provide workers with retirement matches and education. Retirement remains one of the more familiar benefits for good reason: While previous generations worked toward pension payouts, today’s workers rely on their 401k or 403(b) investment plans.

More nonprofits are recognizing the need to help workers plan for retirement. Employer contributions to 403(b) plans rose nearly 25% from 2020 to 2021,³ with overall rates reaching 5.7% of gross annual pay.⁴

These employer-match programs for 401k and 403(b) plans provide strong incentive for employees to bank funds for their retirement. And nonprofit employees are now investing in their retirement at the highest rates ever, with more than 77% of workers saving through their organizations’ plans.⁵

To remain competitive and set talent up for post-employment success, nonprofit organizations should reach for higher employer contribution rates. Those unable to financially commit to a higher match rate should offer financial education and retirement tools to help employees plan for the future. Some retirement fiduciaries offer financial education programs to workers — including certified financial coaches — for a minimal fee.

Contact HUB International’s nonprofit insurance experts to learn more about employee assistance programs, financial education programs and additional benefits to improve worker well-being.

¹ Givebutter Inc., “Nonprofit burnout statistics: The high cost of high turnover,” May 11, 2022.
² PlanSponsor, “Nearly Half of Participants Are Saving Less Than 10% of Income for Retirement,” September 28, 2022.
³ Yahoo! Money, “Amid economic uncertainty, nonprofits enhancing 403(b) retirement plans for employees,” September 29, 2022.
⁴ Plan Sponsor Council of America, 2022 403(b) Plan Survey Report, accessed November 12, 2022.
⁵ Bloomberg, “Despite Pandemic, Nonprofit Workers Boost Participation in 403(b) Employer Retirement Plans,” Oct. 12, 2021.