Organizational Wellness

How to Build an Inclusive Benefits Plan That Supports Every Employee (Examples & Action Plan)

Last Updated Sep 19, 2024

Anyone in HR knows creating a comprehensive benefits plan — one that truly addresses the needs of all employees — is no small feat. This becomes especially true when you have diverse workers with a wide variety of lifestyles and needs.

In the best situation, developing a “one size fits all” plan can leave your team wanting. In the worst, it can even leave you with an exclusionary package. A traditional benefits offering, for example, might only cover the holidays of only one religious group. Or the parental benefits might only apply to women, or not cover adoptive parents.

That’s why many companies are turning to inclusive benefits packages. These are specifically designed to support a wide variety of people and meet their needs. That way, you can hire far and wide and know that you’ll have offerings that these people want.

Discover what inclusive packages can include and how they can help you care for your diverse team members!

What Are Inclusive Benefits?

Inclusive benefits go beyond traditional health insurance and retirement plans to address a variety of aspects that contribute to an employee's overall well-being and job satisfaction. They are designed to positively impact people of all races, genders, sexualities, religions, and other identities.

Such packages could include a parental leave policy that includes everyone — birthing and non-birthing parents, adoptive parents, and foster parents alike. It might leverage floating holidays, allowing workers to take off whatever holidays mean the most to them instead of assuming everyone celebrates Christmas. They may also include programs and resources that support employees from different backgrounds, such as diversity training, mentorship programs, and employee resource groups (ERGs) for underrepresented groups. The sky is truly the limit for inclusive perks!

Setting these up is a great way to begin cultivating a welcoming work environment. When workers see these kinds of packages, they’ll know your organization wants them there and supports them from day one.

What Is a Culture of Inclusivity?

“Diversity is being invited to the party. Inclusion is being asked to dance.” – Vernā Myers

Inclusivity is fostering a collaborative atmosphere where everyone can bring their full selves to work without fear of discrimination or judgment. It requires creating a culture that supports diversity and equity.

Diversity is having people with a variety of experiences and backgrounds. There are many types of diversity, including religion, age, culture, skills, and neurodiversity. A workplace that is overly homogenous — one that lacks diversity — can limit the ideas flowing within your company and limit how well you can understand your customers. This is why businesses with ethnic diversity have a 39% increase of financially outperforming non-diverse organizations.

Equity is promoting fairness with policies and distribution of resources. This is not the same as equality, which involves giving everyone exactly the same things. Instead, equity actively tackles disparities, providing support and filling gaps that might occur due to societal problems. For example, it’s not uncommon for women to be primarily responsible for caretaking. To counteract the imbalance that may cause in their lives, a workplace might offer scheduling flexibility and additional leave policies.

These initiatives then make the company more fair for everyone by making up for the disparity women and other caretakers might experience.

When these two pieces come together, it creates inclusion. Actively promoting diversity and equity helps you create an environment where everyone feels welcome, which is a culture of inclusion.

How Inclusive Benefits Support Diversity

Diversity is a priority for workers today: 72% of employees want their employer to invest in more inclusion. Inclusive benefits are a great way to do just that by having a positive impact on:

Hiring: Four out of five workers actively want to work for a company that values inclusion. Prioritizing this type of environment can then draw talent to your organization. In fact, companies with more inclusivity efforts do experience better recruitment, according to research from Deloitte. That type of environment can also help your recruiters combat unconscious bias and find culture adds, not just culture fits.
Retention: Turnover is costly— replacing a salaried employee costs up to 150% of their salary. The good news is that inclusion improves retention! That’s because when someone works where they feel supported, they want to stay. A strong culture and inclusive benefits can do that.
Workplace culture: About 58% of employees value workplace culture higher than their salary. Inclusive benefits set the tone for an open corporate culture, which allows people to feel comfortable bringing their full selves to work. That, in turn, creates a workspace where ideas can flow and employees are excited to show up (after their coffee, of course).

Examples of Inclusive Benefits

Inclusive benefits can come in a lot of forms, but these are some of the most common:

Indiscriminate Parental Leave

Parental leave policies allow employees to take time off from work after the birth or adoption of a child. An inclusive policy allows any kind of parent to take time off, sometimes including time off for loss and miscarriage.

Flexible Scheduling

With a variety of needs at your organization, a stereotypical nine to five doesn’t suit everyone. Workers with additional responsibilities (like caregiving) likely need flexibility. Providing that can help make your company a place people from all walks of life want to work.

Unlimited Paid Time Off

Unlimited PTO allows employees to take time off work (and get paid for it) as long as they finish their responsibilities. It’s a great way to appeal to people who might have different needs and lifestyles. It also reduces the sense of hierarchy in the workplace by allowing everyone access to the same amount of paid time away from work without having to ask permission or feel judged for taking a certain amount of vacation time.

Floating Holidays

Not every employee is going to celebrate the U.S. public holidays or Christmas. Offering floating holidays — which give workers the power to choose what days count as their holidays from work — lets employees of every culture and religion celebrate the days that are important to them. This system lets If an individual doesn’t celebrate a particular day, they can choose an alternative holiday, including their own religious holidays. Less than half of companies provide this benefit right now, so it’s a powerful perk that can help you stand out from the competition.

Tuition Reimbursement or Assistance

Tuition reimbursement can help create an economically inclusive workplace. It provides employees with the means to pursue educational opportunities that may otherwise be out of reach. This encourages career advancement and increases the number of qualified applicants for higher-level positions. Plus it gives more people — regardless of their background — increased opportunities to get an education.

Wellness Benefits

Employee wellbeing isn’t some fleeting trend, it is an essential part of creating a positive and inclusive workplace. Mental and physical wellness programs create an environment where employees feel supported and respected as whole people. Recognizing employees are on unique wellbeing journeys — and meeting them where they are, no judgment — lets them know all are welcome.

Caregiving Benefits

About 22% of American adults are caregivers in some capacity, so it’s likely you have a team member who could use caregiving benefits. These might include remote work options or compensation for caregiving to make it easier to care for a loved one or child.

Variety of Healthcare Providers

Patients benefit from having a healthcare provider that’s of the same racial or cultural background. It increases the likelihood that a patient will be taken seriously and receive the right care. While you can’t pick the healthcare providers, try to choose insurance that works at a wide variety of places. In addition, consider providing a directory of the providers with gender and race to help employees find a good match.

Domestic Partner Benefits

Cohabitation is on the rise, and marriage is on the decline, so not every employee’s partner will be their spouse. To support workers and families of all kinds, you can provide spousal benefits to domestic partners of all kinds. Essentially this benefit allows any type partner to receive the same access and advantages as a legal spouse. For example, they can receive the same rate of health insurance coverage as someone’s spouse would.

Gender-Affirming Benefits

Supporting your transgender employees is a great way to create an inclusive environment. The Human Rights Campaign provides a list of transgender-inclusive benefits, which includes coverage of gender reassignment surgery, hormone therapy, and counseling. Providing these perks shows these individuals that they’re cared for at your company.

Get More Out of this Employee Benefits Series:

What Benefits Do Employees Value Most?

Employee Benefits Guide for HR Leaders

Top 6 Employee Benefits Trends for 2024

Craft a Winning Benefits Strategy: An HR Guide to Attract & Retain Top Talent

How to Optimize Your Employee Benefits Strategy

How to Build a Competitive Benefits Package that Wins You Top Talent

Why Are Benefits Strategically Important to Employers Today?

Strategic Benefits Strategy for Employee Retention and Engagement Long-Term

Maximize Benefits ROI: Data-Driven Strategies for HR Leaders

Assembling an Inclusive Benefits Package

Excited to start optimizing your employee benefits strategy by better meeting the needs of your entire workforce? Follow this action plan to get started!

Step 1: Assess Current Employee Demographics and Needs

The first step to creating an inclusive benefits plan is knowing your people. Dive in by conducting surveys, leading focus groups, or having open conversations to get a clear understanding of your workforce’s diverse needs and preferences. When every voice is heard—from parents and caregivers to employees of different cultural backgrounds—you’re building a benefits plan that reflects and supports your entire team. This foundational knowledge lets you create offerings that truly resonate with your employees, showing them that you care about their well-being.

Step 2: Benchmark Against Industry Standards

Now that you know your people, it’s time to see how your benefits compare. Check out what your competitors and top industry players are offering—look at third-party reports, industry benchmarks, or even reach out to peers. This gives you a clear picture of where your plan stands and reveals any gaps. By aligning with industry standards or going above and beyond, you position your company as a leader that values its people, keeping you competitive while attracting and retaining top talent.

Step 3: Identify Key Inclusivity Gaps

With your data in hand, it's time to pinpoint where your benefits are missing the mark. Are you meeting the needs of all employees—whether they’re caregivers, individuals with disabilities, or those in non-traditional family structures? This is where you can really make an impact. Addressing these gaps shows your commitment to inclusivity and diversity. It’s about going beyond the basics and providing benefits that support everyone in your organization, making sure no one feels overlooked or unsupported.

Step 4: Engage Employee Resource Groups (ERGs) and Leadership

Collaboration is key! Bring in your Employee Resource Groups (ERGs) and leadership teams to help co-create solutions. ERGs offer powerful insights into what their communities need, and leadership ensures these ideas are aligned with the company’s strategy. By working together, you’re not only showing transparency, but also making sure that the benefits reflect the real needs of your workforce. Plus, having leadership involved early means you’ll have the necessary backing to secure the resources and budget to bring these changes to life.

Step 5: Develop a Tiered Approach to Benefits Expansion

Rome wasn’t built in a day, and neither is an inclusive benefits plan. Consider starting with quick wins—high-impact, low-cost changes like flexible work options or mental wellness support—and roll them out first. Meanwhile, start planning for bigger, long-term investments like expanded healthcare or parental leave. This tiered approach allows you to make immediate improvements while maintaining a clear vision for the future, proving to your employees that progress is both happening now and planned for the long haul.

Step 6: Prioritize Clear and Transparent Communication

No matter how great your new benefits are, they won’t matter if your employees don’t know about them. Develop a communication plan that breaks everything down in clear, accessible language. It helps to use every channel you’ve got—email, town halls, the intranet—so no one misses out. Most importantly, explain the “why” behind the changes. When employees understand how and why these new benefits align with their needs, they’re more likely to embrace them. Clear, honest communication builds trust and makes employees feel valued!

Step 7: Roll Out the Changes and Provide Ongoing Education

When the changes are ready, don’t just launch and leave it at that. Educate your employees on how to use and access these new benefits through workshops, guides, or Q&A sessions. The goal is to make sure everyone understands the full value of what’s being offered. Empowering your team with knowledge ensures they make the most of these new resources. After all, offering great benefits is one thing, but helping your employees take full advantage of them is what really makes the difference.

Step 8: Measure Success and Adjust

After you’ve rolled out your inclusive benefits plan, keep an eye on how things are going. Use employee feedback surveys, usage stats, and KPIs to measure success. What’s working? What needs tweaking? This data-driven approach ensures that your benefits stay relevant and effective. Your workforce is evolving, and your benefits should too. Regularly adjusting your plan based on real-time insights keeps you agile and aligned with your team’s ever-changing needs.

Step 9: Stay Informed and Innovate

Finally, keep your finger on the pulse of what’s next. Stay updated on benefits trends, both in and outside of your industry. Attend conferences, join webinars, and network with peers to gather fresh ideas. The workplace is constantly evolving, and staying informed ensures you remain competitive and responsive to your employees’ needs. Innovation doesn’t stop after the rollout—it’s an ongoing process that keeps your benefits fresh, inclusive, and ahead of the curve.

Caring for the Whole Person

Offering inclusive benefits shows employees that they are embraced no matter what. They give employees access to programs and services tailored specifically to their unique circumstances.

Wellness programs can be a great way to advance inclusivity. A holistic initiative helps people from every background continue to strengthen everything from their physical to emotional to financial wellness. This can also boost your retention and attract top talent.

Creating these types of programs can help your company see real benefits. In fact, 95% of companies tracking the ROI for these initiatives see positive wellness returns and 56% see at least two times the ROI, according to Wellhub research. That means adding these initiatives genuinely helps individuals improve their overall wellness.

Ready to get started improving your wellness benefits? Talk to a wellbeing specialist today!

Company healthcare costs drop by up to 35% with Wellhub! (* Based on proprietary research comparing healthcare costs of active Wellhub users to non-users.) Talk to a Wellbeing Specialist to see how we can help reduce your healthcare spending!