In today's demanding environment, employee wellness is no longer optional—it's essential for business success. Over 83% of UK organisations report an increasing workforce demand for well-being benefits. Recognising this shift, companies are exploring innovative approaches to supporting their workforce. 

Introducing the well-being allowance: a forward-thinking solution that empowers employees to prioritise their health and happiness on their terms. By strategically implementing this benefit, organisations can unlock a powerful combination of improved employee engagement, enhanced productivity, and a stronger bottom line.

What is a wellbeing allowance?

A well-being allowance, also referred to as a lifestyle spending account (LSA), is a financial contribution provided by an employer to support their employees' health and well-being. A staff member can use this allowance to cover a range of expenses related to improving one’s physical, mental, and emotional health.

Examples of well-being allowance expenses include: 

• Health club membership
• Exercise gear
• Massages 
• Therapy sessions
• Nutritional supplements
• Ergonomic office furniture 
• Healthy meal kits or grocery delivery services 
• Childcare support 

The benefits of an employee wellbeing allowance 

There’s a reason why people say health comes first. Good health is imperative to achieving life objectives, including professional goals. By providing funds to invest in one’s health, your organisation ultimately assists workforce members in putting their best foot forward. 

This motivation manifests in several ways: 

• Improved mental health: By providing financial support for mental health services like therapy, counselling, or mindfulness apps, companies can empower employees to prioritise their mental well-being and address potential challenges proactively. Over half of employers that drive wellness initiatives report that their programmes focus heavily on mental health.
• Enhanced work-life balance: Health and well-being allowances can support activities that promote work-life balance, such as gym memberships, healthy meal delivery services, or childcare support. This can reduce stress and improve overall employee satisfaction. 
• Increased engagement and productivity: A healthier and happier workforce is a more engaged and productive one. By investing in employee well-being, companies can see a positive return on investment through increased focus, reduced absenteeism, and improved job performance. 
• Prioritisation of wellness in the workplace: After launching a wellness role or initiative, 89% of businesses express that employees are likelier to discuss and engage in well-being topics.

Wellbeing allowance ideas for employers

The possibilities for utilising a health and well-being allowance are vast. Providing options aligned with your workforce's needs and interests is essential. So consider sending out a survey to obtain feedback and launch your well-being allowance strategy on the proper foundation.

Here are a few ideas to get you started:

1. Fitness memberships: Subsidise gym memberships or online fitness classes to encourage physical activity.
2. Mindfulness apps: Studies report 21% of UK organisations provide mindfulness programmes as a wellness benefit. Subscriptions to mindfulness and meditation apps help employees manage stress and improve mental clarity.
3. Lifestyle/wellness workshops: Provide funding for employees to attend workshops on topics such as stress management, nutrition, and menopause. Seventeen percent of businesses offer menopause support.
4. Healthy meal delivery services: Subsidise healthy meal delivery services to promote nutritious eating habits and work-life balance. 
5. Remote work equipment upgrades: Support employees in creating ergonomic and comfortable home office setups.

Simplifying wellbeing allowance management with Awardco

Relying on health and well-being allowance software can make it simple for you to accumulate and offer these options to your team. Once staff members receive their allowance, they have the power to choose among several options. 

Managing a well-being allowance programme can be complex. Awardco's well-being platform simplifies the process by:

• Providing a central hub: Easily manage budgets, track employee spending, and generate reports on programme effectiveness.
• Offering flexible options: Employees can choose from various approved vendors and services. 
• Integrating with payroll: Seamlessly integrate with existing payroll systems for easy reimbursement.
• Providing personalised experiences: Tailor the programme to meet each employee's unique needs and preferences. Consider starting with a survey to obtain ideas and implementing those needs into the well-being gift options.

Invest in wellbeing allowances with Awardco

Investing in employee well-being is not just a nice-to-have; it's a strategic imperative for businesses. By implementing a well-designed well-being allowance programme, companies can demonstrate their commitment to employee health and create a more engaged, productive, and successful workforce.

Learn more about implementing a successful well-being allowance programme with this comprehensive guide.