“It’s not about investing more, it’s about investing in the right places,” says Mercer’s Jennifer Schmidt
If employers want a healthier, more productive workforce, they’ll need to reassess their strategy in both plan design and talent retention, a Mercer survey has found.
Mercer’s latest Health on Demand survey drills into how different segments of the population experience benefits, highlighting stark gaps along generational and gender lines.
For instance, 80 per cent of Boomers consider themselves mentally and physically well, compared to only 67 per cent for Millennials and 66 per cent for Gen X. Meanwhile, 91 per cent of Gen Z and 89 per cent of Millennials have delayed seeking healthcare, often due to financial reasons or long wait times. And fewer women (60 per cent) report that their benefits needs are being met, compared to men (64 per cent).
Jennifer Schmidt emphasizes the findings aren’t just simply about employee satisfaction, it’s a warning signal for engagement, productivity, and ultimately, business performance.
What stands out in the latest findings, Schmidt explained, is the financial anxiety running through all demographics, from baby boomers to Gen Z, male and female, but all felt unevenly. While cost-of-living pressures are widely reported, the deeper concern is how those pressures intersect with identity, role, and accessibility.
“The employee sentiment is there and they're really worried about money,” she said. “I think what this report pulls out is the disparity. If you think from a health equity lens, worrying about money is not the same for all people.”
She sees employers as having both the tools and the responsibility to address these inequalities, particularly through smarter benefits design. Programs that focus on financial wellness, digital health access, and credible information delivery can make a significant impact, especially for groups such as people with disabilities or those from racialized or marginalized communities.
“Employers are in a unique position to support this concern about affordability through benefits programs, through financial wellbeing programs. That might include pensions, but it might also include flexible savings plans. They're in a position to support with digital health tools that would enable access to care or access to credible information.”
Schmidt emphasized that employers need to take a hard look at where their benefits dollars are going. The question isn't whether to spend more on benefits, it’s whether plan sponsors are spending what they already have in the right places.
She argued that organizations should ask harder questions about their current benefits spend and ask questions that consider whether their current plan design is aligned with the needs of their present and future workforce or if it’s generating value, even if only a few plan members use a given service.
After all, she added the worst plan sponsors can do is assume their plans are still working.
“Don’t assume that your design from 15 years or 10 years ago, even five years ago is the right design for your future workforce,” she said, urging employers to reevaluate their spending instead through the lens of talent attraction, wellbeing, and absence management.
“I really think that it’s not about [investing] more. It’s about investing in the right places,” she added.
The second priority, Schmidt highlighted, is recognizing the employer’s critical role in both care access and prevention - or what she more precisely calls mitigation.
This essentially has the employer to take on a more caregiving role with their employees and includes supporting those managing chronic conditions or navigating health needs without unnecessary disruption. That could mean practical accommodations like a sit-stand desk or a modified role on a production line.
Another major theme for Schmidt is the connection between health, engagement, and productivity. She believes outdated benefit models that rely on passive engagement fail to deliver value. Instead, plan sponsors should think about “those moments that matter,” offering timely, personalized support tied to life events such as pregnancy, divorce, or a child’s mental health crisis.
The ultimate goal isn’t just treatment but enabling employees to remain engaged and productive while managing health challenges. That in turn can help redirect ineffective spend into programs that better engage, educate, and reinforce the employer’s value proposition.
Schmidt sees a meaningful evolution underway in what employees expect from workplace benefits and acknowledged that many employers are missing the moment. She pointed to the evolving shift towards prioritizing prevention and proactive care rather than simply offering reactive support, she noted. Rather than waiting to get sick, employees from Gen Xers caring for aging parents to boomers navigating their own health concerns are seeking tools and knowledge to stay well.
That’s why she argues employers are uniquely positioned to meet that need by offering access to trusted, credible resources.
Schmidt also pointed out that employers are now second only to governments in terms of public trust, far ahead of insurers and other third parties. That trust creates a powerful platform for employers to support wellness, not just through insurance plans, but through social connection, mental health training for managers, and inclusive employee resource groups. These don’t even need to be high-cost investments, just smart, intentional ones, she said.
However, the challenge, she emphasized, is recognizing that employee wellbeing isn’t just physical, it’s also social and emotional too. Instead of defaulting to full insurance programs, she suggests offering access to services through digital health portals like virtual physiotherapy or telemedicine to ensure broader support without overextending budgets.
“If your people aren't engaged, if they aren't productive, if they aren't healthy, they can't do their best work for you,” said Schmidt.
