How Nonprofits can Combat Burnout and Turnover with Affordable Wellbeing Initiatives

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. Adding to the stress is the looming reality that up to 400,000 Massachusetts workers may need to transition to a different occupation entirely within the next 10 years due to a changing economic landscape.

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.

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 think more broadly about adding voluntary benefits, which allows nonprofits to layer elective benefits onto the employee experience at a lower cost.

Additions such as accident or critical illness coverage, financial counseling, student loan repayment programs, identity theft protection, and mortgage protection insurance 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. Even something as simple as offering a gym membership or discounted goods and services can go a long way in making an employee feel like their job comes with “perks.”

• 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, with overall rates reaching 5.7% of gross annual pay.

Such 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.

• Raise contribution rates. 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 programsto workers — including certified financial coaches — for a minimal fee.

Contact HUB’s New England offices at [email protected] to learn more about employee assistance programs, financial education programs and additional benefits to improve worker well-being.