Top 2024 Wellness Trends
January 17, 2024
Top 2024 Wellness Trends

As the workplace landscape continues to evolve, so does the understanding of employee wellness. In 2024, organizations are embracing innovative strategies to prioritize their workforce's physical, mental and financial health. While organizations may have already expanded their mental health support in past years, some are now pivoting and embracing a holistic approach to employee well-being.


This article highlights five employee wellness trends to look out for in 2024.


1. Supporting Employee Burnout

Employers shouldn’t expect employee burnout to disappear anytime soon. A 2024 trends report from wellness portal provider MediKeeper notes that toxic workplaces, long hours, understaffing, lack of recognition, interpersonal conflict and unclear or inexplicable workplace policies are contributing to employee burnout. As such, organizations may prioritize strategies to prevent and alleviate burnout. Flexible work arrangements, realistic workload expectations and designated downtime are being implemented to help employees maintain a healthy work-life balance. Moreover, companies could encourage open communication channels that allow employees to voice their concerns and seek support as needed.


On a related note, many employers will renew their focus on mental health in 2024 as they acknowledge the impact of mental health on employees’ overall well-being. Employee assistance programs (EAPs), counseling services and stress management workshops are increasingly becoming key components of workplace wellness initiatives. More employers are also investing resources to destigmatize the topic of mental health (e.g., anti-stigma campaigns, mental health literacy training and EAPs) and foster a culture where employees feel comfortable seeking mental health support.


2. Integrating Technology

Technological advancements will shape a new employee wellness landscape that incorporates digital health platforms, wearable technology and artificial intelligence (AI) solutions. More employers will explore these types of technology to understand how to integrate them into wellness or employee-focused programs.


Technology can enable real-time health monitoring, personalized wellness plans and immediate 24/7 access to health resources and services. Virtual health platforms can help overcome barriers to health care access. In 2024, apps are expected to go beyond fitness tracking and feature mindfulness exercises, nutritional guidance and personalized wellness plans. Despite their limitations, AI-driven approaches have the potential to promote preventive health care and detect or manage health issues. Personalized data allows employees to understand their health better and make informed decisions about their health or lifestyle. Employers are leveraging technology to tailor and improve their employees’ well-being experiences.


3. Expanding Financial Wellness Programs

Money is a top stressor for employees and concerns have been exacerbated by prolonged inflation pressures throughout 2023. Financial stress can significantly impact an individual's mental and emotional health. In 2024, employers are expected to extend their wellness programs to include financial education and support to help contribute to a more secure and stable workforce.


Employers can consider the following common personal financial goals as they design their financial support efforts:


  • Building an emergency savings
  • Navigating cashflow changes
  • Managing debt
  • Choosing proper health insurance and benefits
  • Preparing for significant life events
  • Saving for retirement


Many organizations employ a multigenerational workforce, which means employees often face unique financial stressors. To provide relief, some employers offer financial wellness programs that vary in complexity but can include virtual personal financial planning meetings, tuition reimbursement and seminars. EAPs can also help employees navigate financial challenges. The idea is to provide a wide variety of services for the workforce. Employers can help reduce employee financial stress by exploring financial wellness resources and support options and offering attractive programs for current and prospective employees. Financial wellness is a critical component of well-being and can be a competitive offering.


4. Taking a Holistic Approach to Wellness

The days of compartmentalizing physical, mental and emotional well-being are over. In 2024, organizations are adopting a holistic approach that considers the entire employee. For example, holistic wellness programs encompass nutrition, fitness, mental health and stress management. An integrated approach aims to create a work environment that nurtures every aspect of an employee's well-being, fostering a sense of balance and resilience.


This renewed focus on holistic wellness is not just a trend; it's a fundamental shift in how companies approach employee care. Organizations can create a supportive culture that encourages education, open conversations and utilization of available resources by prioritizing mental and financial well-being in health and wellness initiatives.


5. Cultivating a Company Culture of Care

Perhaps the most transformative trend is the conscious effort to cultivate a culture of care within organizations. This goes beyond workplace policies and programs; it's about fostering an environment where employees feel seen, heard, valued and supported. Team-building activities, mentorship programs and leadership training focused on empathy and emotional intelligence are becoming integral components of organizational efforts.


Additionally, psychological safety is a growing priority for employers. Being psychologically safe means employees feel secure in talking and being vulnerable in front of others. Organizations benefit when employees feel comfortable asking for help, sharing ideas or challenging the status quo without fear of negative consequences. Leaders play an essential role in nurturing psychological safety in the workplace, so it starts at the top. Employers can foster a psychologically safe work environment by reflecting on leadership styles, accommodating dispersed employees and demonstrating concern for employees. Employee wellness initiatives play perfectly into this. Employers can proactively train employees and managers on psychological safety to raise awareness and teach supportive behaviors and practices that foster trust and transparency around health and wellness topics (e.g., burnout and stress). Remember that psychological safety is a key work dynamic that takes time to build but just moments to destroy. It comes down to employers creating opportunities for open feedback and dialogue so employees can be themselves in the work environment.


Summary

Employee wellness is taking center stage in 2024, with organizations recognizing the interconnected nature of physical, mental and financial health. More employers are paving the way for a holistic approach to workplace wellbeing. As these trends evolve, employees can expect a more supportive and nurturing work environment that values their overall health and happiness.


Organizations can start by evaluating current wellness initiatives and thinking about ways to improve them. To ensure offerings and investments resonate with the workforce, it can be helpful to survey employees first and see what they find most valuable and necessary for their overall well-being.


Contact us for more wellness-related workplace guidance.

Sign up for our newsletter.

Top 5 HR Trends That Will Shape Businesses in 2025

January 7, 2025
As 2025 kicks off, the HR landscape is evolving faster than ever before. Technology, shifting workforce expectations, and the need for businesses to be agile in a dynamic global environment are all driving change. What worked yesterday may not be enough today, and companies must adapt to stay ahead. Here are the top five HR trends you’ll need to watch closely in 2025: 1. AI is Changing the Hiring Game Artificial intelligence is no longer just a buzzword in HR—it’s a game-changer. Tools that can scan resumes, match candidates to roles, and even conduct initial assessments are becoming staples for businesses aiming to save time and improve hiring outcomes. In 2024, many organizations began integrating AI to remove unconscious bias and make their hiring practices more inclusive, and this trend is expected to accelerate. 2. Flexibility Isn’t Just a Perk Anymore Hybrid and remote work models are here to stay, but the conversation has shifted. In 2025, it’s less about offering flexibility and more about making it work effectively. Companies are adopting sophisticated tools for remote collaboration, redefining performance metrics, and ensuring policies address the nuances of managing both in-office and remote teams. The focus is on maintaining productivity without compromising employee well-being. 3. Wellness Goes Beyond Gym Memberships In recent years, wellness programs have evolved beyond basic offerings like gym memberships to address a wider range of employee needs. As companies recognize the link between employee well-being and productivity, they’re broadening their focus to include mental health, financial stability, and holistic support. In 2023 and 2024, for example, Delta expanded its employee wellness initiatives by improving access to mental health care. The airline worked with Spring Health, a new EAP provider, to create a larger and more diverse network of mental health professionals, offering better support for both employees and their household members. Looking ahead to 2025, wellness will become more deeply integrated into company cultures. Expect companies to go beyond providing reactive support to fostering proactive wellness through personalized tools, such as mental health apps, financial coaching, and enhanced benefits like paid leave for caregiving. With these programs, businesses are not just addressing immediate health concerns but also empowering employees to manage their overall well-being in a more holistic way. The focus will be on creating a supportive, sustainable work environment that helps employees thrive both at work and in their personal lives. 4. Upskilling is a Competitive Necessity Technology is evolving faster than ever, and companies are racing to keep up. Upskilling employees in areas like data analysis, AI, and emerging tech became a priority in 2024, and it’s clear that this trend will only grow. Businesses that invest in continuous learning programs—whether through certifications, on-the-job training, or digital learning platforms—are better positioned to stay ahead in their industries. 5. Data is Driving HR Decisions HR is leaning heavily on people analytics to guide decision-making. Instead of relying on intuition, businesses are using data to understand employee engagement, pinpoint reasons for turnover, and improve productivity. The emphasis on metrics like employee sentiment and workforce utilization gained traction last year, and more organizations are embedding analytics into their HR strategies to tackle challenges proactively. Final Thoughts The HR landscape in 2025 will be shaped by these transformative trends. Businesses that embrace innovation and prioritize their people will find themselves not just adapting but thriving in the evolving workplace. As these trends unfold, staying proactive and flexible will be the key to turning challenges into opportunities.

IRS Announces 2025 PCORI Fee Update

January 6, 2025
The IRS has released the 2025 Patient-Centered Outcomes Research Institute (PCORI) fee , which will increase to $3.47 per covered life —a $0.25 increase from 2024. This fee applies to plan years ending on or after October 1, 2024 , and before October 1, 2025 . What is the PCORI Fee? The PCORI fee was introduced as part of the Affordable Care Act (ACA) to help fund the research conducted by the Patient-Centered Outcomes Research Institute (PCORI). This research focuses on improving healthcare outcomes by comparing different medical treatments. The fee is levied on insurers, as well as self-insured and level-funded health plans. The fee is calculated based on the average number of covered lives under a plan and is due once a year, with the filing occurring during the second quarter on Form 720 , the Quarterly Federal Excise Tax Return . The payment is due by July 31 each year. Key Details for Employers and Plan Sponsors Who is Affected? : The fee applies to health insurers, self-insured health plans, and level-funded health plans. When is it Due? : The fee must be reported on Form 720 and paid by July 31 each year. How is it Calculated? : The fee is based on the average number of covered lives during the plan year. The updated $3.47 per covered life fee will be in effect for health plans with policy years ending between October 1, 2024, and October 1, 2025. Employers should be prepared to account for this increase when filing for 2025. For more information on the PCORI fee and its reporting requirements, consult the IRS Bulletin 2024-49 , published on December 2, 2024, or visit the IRS PCORI Fee page . 

Federal DOL Restores Simplified Tip Credit Rule: Employer Guidance

January 6, 2025
In a move welcomed by many employers in the hospitality and service industries, the U.S. Department of Labor (DOL) has officially reinstated the pre-2021 tip credit rule. This change, effective December 17, 2024, follows a recent court of appeals decision that vacated the “80/20/30” tip credit rule that had been implemented under the Trump administration. If you’re wondering what this means for your business, don’t worry—this update doesn’t require any immediate action on your part. What Was the "80/20/30" Rule? Before we dive into the implications of the DOL’s latest rule change, let’s quickly review the "80/20/30" rule. This rule, introduced in 2021, placed specific restrictions on how much time tipped employees (such as waitstaff and bartenders) could spend on non-tip-generating duties (e.g., cleaning, setting up, and other side work). The rule essentially required that tipped workers spend at least 80% of their work hours on tip-generating activities to continue qualifying for the tip credit. Moreover, under the "80/20/30" rule, employers could no longer use the tip credit to offset wages for certain non-tip-producing activities, and they had to ensure that employees spent no more than 30 minutes at a time on side duties. This increased the burden on employers, as it required more careful tracking of employee duties and work hours to remain in compliance. Why Was the Rule Vacated? The court of appeals decision in August 2024 ruled that the "80/20/30" rule was too restrictive and inconsistent with the intent of the Fair Labor Standards Act (FLSA), which allows employers to take a tip credit for workers who perform both tipped and non-tipped duties. The court found that the new rule created unreasonable administrative burdens and restrictions that were not in line with past practices or legal precedents. In response to this ruling, the DOL moved quickly to restore the pre-2021 tip credit rule. What Does the Reinstatement of the Pre-2021 Rule Mean for Employers? With the reinstatement of the pre-2021 tip credit rule, the DOL has effectively simplified the way employers can apply the tip credit to their workers. Under the prior rule, employees who perform a combination of tipped and non-tipped duties can still qualify for the tip credit, as long as their primary job responsibility is related to tipped work. Employers no longer have to track the precise breakdown of time spent on tip-generating vs. non-tip-generating activities in the same way. This returns to the more flexible guidelines where as long as tipped employees perform "related" duties (e.g., cleaning their station, setting up for service), they can still receive the tip credit for those hours, provided those activities don’t dominate their workday. What Action Is Needed from Employers? For most employers, this change will not require any immediate action, as the final rule effectively restores the pre-2021 approach. The main thing to note is that employers should continue to comply with the broader requirements of the Fair Labor Standards Act (FLSA) and ensure they are properly paying employees at least the federal minimum wage (including tips) when they apply the tip credit. Here are a few things to keep in mind: Reassess Timekeeping Systems: While the rule change simplifies some aspects of record-keeping, employers still need to ensure they have a timekeeping system in place that accurately tracks the hours worked by tipped employees. It is essential to ensure that the wages (base pay plus tips) equal at least the federal minimum wage. No Need for Immediate Adjustments: If you were already applying the pre-2021 tip credit rule, no changes are necessary on your part. For those who had adjusted to the "80/20/30" rule, reverting back to the previous method should not require significant changes. State and Local Laws: Employers should still be mindful of any state or local laws that may have stricter requirements than federal law. Always check your state’s labor regulations to ensure full compliance. Why Is This Change Important? The reinstatement of the simplified tip credit rule provides relief to many employers, particularly in industries like restaurants, hotels, and other service-based businesses where tipping is common. The pre-2021 rule is seen as more employer-friendly, offering more flexibility in how tipped employees can spend their time without losing eligibility for the tip credit. For employers, this means less administrative burden, reduced risk of compliance issues, and potentially fewer legal challenges. This shift is a step toward simplifying labor law compliance for businesses already struggling with the complexities of wage and hour rules. Looking Ahead As we move further into 2025, it’s important for employers to stay informed of any future changes in federal labor regulations. While this change restores a previous rule, the DOL’s stance on tip credits and wage issues can continue to evolve. Employers in tip-dependent industries should continue to monitor updates from the Department of Labor and legal rulings to ensure ongoing compliance. The DOL’s restoration of the pre-2021 tip credit rule is a welcome change for many businesses, offering a return to simpler guidelines and less restrictive requirements. For most employers, no immediate action is required, but it’s always a good idea to review your practices to ensure they align with the updated rule. If you need further assistance in navigating these changes, reach out to Simco to ensure your business stays compliant in 2025 and beyond. 

Have a question? Get in touch.

Share by: