When you try and name example ways to use a wellness stipend, how far do you get? If you’re struggling after ‘gym membership,’ you’re not alone. While the world of wellbeing has changed since the pandemic and is evolving further, the lone gym membership is still what many think of when it comes to wellbeing.

However, well-being affects an employee’s physical, mental, and emotional state and a company’s bottom line. Recent research from Gallup shows a $322 billion (yes, with a ‘b’!) of turnover and lost productivity cost globally due to employee burnout.

What’s more, only 1 in 4 U.S. employees strongly agree that their organization cares about their overall well-being. Ouch.

The solution to these issues can’t be solved overnight, but by offering your employees more examples of wellness programs that fit their individual needs, your people will be better off.

That’s why offering a wellness stipend has emerged as a top-tier solution for the future of work.

Because a wellness stipend allows employees to choose what’s essential to their health journey, it’s become the most practical and impactful way for employers to support the health of their employees while remote. The makeup of your employees has changed. You likely have a mix of the following:

• In-office employees
• Field employees
• Hybrid workers
• Remote workers
• Working parents
• Multigenerational
• Varying financial levels

When you have more than one type of person working for you, it’s only natural that you must provide more than one type of benefit! That’s why employee wellness stipends can be a great solution to go against the grain of the ‘one-size-fits-all’ perk to give your people genuine choice and ownership over their well-being.

What you need to know about wellness stipends

A wellness stipend, also known as a wellness spending account or wellness allowance, allows employees to pay for mental or physical health needs. Employers should understand that this is a taxable benefit. They can either cover the tax or list the stipend on each employee’s W2 form as taxable income.

There are different ways to offer a wellness stipend to your employees. You could opt for a one-time or ongoing health stipend paid out monthly, quarterly, or annually.

Many successful companies opt to provide an all-inclusive recurring stipend for employees that covers wellness purchases, food, internet costs, education, and more.

However you decide to approach a wellness stipend for your team, a stipend software like Compt can reduce your administrative effort and help make your business more tax-compliant.

Examples of ways employees can use a wellness stipend

One of the greatest perks of offering employee wellness stipends is the flexibility. With a wellness stipend, you get to provide your employees a seemingly endless list of possibilities to support their health — physical, emotional, psychological, or otherwise.

Below are 20 example ways employees can put that wellness stipend to good use across various budgets.

Counseling

Whether an employee wants to manage everyday stress or has specific issues they need to work through, a therapist can help give them an outlet and tools to manage their emotions. Access to a trained therapist without worrying about the cost can help employees through this challenging time. While health insurance can cover some of this cost, many therapists don’t take health insurance, leaving the employee to pay anywhere from $100 to $250 per session out of pocket, according to the average cost of therapy.

Ergonomically office furniture

Whether employees work at home or the office, they need office furniture they can use without discomfort. Reimbursement for a standing desk or a chair that sits at eye level to the computer can help prevent repetitive use injuries. Remember that you’ll want to separate non-taxable items (remote work office equipment) versus things that could fall under productivity (coworking memberships, noise-canceling headphones) that would be taxable.

Gym membership or equipment

We know — we can’t leave it off the list though! Paying the full or partial cost of a corporate gym membership was more popular pre-pandemic, but there are still ways employers can support a healthy workout routine. Many of your employees likely workout at home now and may even want to set up their own home gym. Help them get that exercise bike or even a set of weights with a wellness stipend.

Health insurance

Companies with high-deductible plans or encouraging employees to shop their state marketplace can help health insurance more affordable by offering a wellness stipend. This can be a great benefit that many employees aren’t expecting. For example, to ensure our employees get the same dollar value benefit whether or not they’re on Compt health insurance, we offer additional monthly stipends of up to $1,000.

Weight loss plan membership

For those needing a little extra help maintaining a healthy weight, weight loss programs continue to gain popularity in membership. In fact 4 in 10 adults have obesity, a number that has risen 3% since the pandemic. People with group support and access to health resources typically lose weight and keep it off longer than those who do it alone.

Massage or spa services

Yes, that essential oil massage can be reimbursed under the right program! Employees can enjoy a destress or deep tissue massage to counteract hours hunched over their desks. Plus, while they’re there, they can also enjoy other amenities.

Health supplements

Supplements can benefit people lacking specific vitamins and minerals, but the price tag often holds them back. Using a wellness stipend to purchase supplements for several months can help boost an employee’s health and productivity.

Smoking cessation program

Employees who smoke can be less productive than non-smokers because they tend to take more breaks to smoke. Smoking also causes significant health issues such as cancer and heart disease, yet quitting is extremely challenging. With the rise of vaping, smoking has widened beyond cigarettes, with your typical vaper seeing a $2,000 increase in annual healthcare costs compared to non-tobacco users. Give employees the support they need to finally quit.

Skincare products

Signs of illness often first appear on the skin. Professional-grade skincare products can help keep skin healthy and can be one of the examples of ways to use a wellness stipend.

Nutrition classes

Many people want to eat better but lack knowledge of basic nutrition. Attending an online class or receiving one-on-one instruction in person can help them foster better, healthier habits that will impact their overall well-being.

Yoga classes

Not everyone enjoys or can complete traditional types of exercise. A wellness stipend allows them to pursue something they might enjoy better, such as yoga. With all kinds of yoga classes offered in person or online, this could be a great way to destress during their lunch break, after work, or whenever needed!

Diabetes education

Millions of Americans have pre-diabetes and don’t know it. That means anyone can benefit from learning the risk factors for diabetes and how to prevent them. Where obesity is more prevalent, like in rural areas, this can be key to understanding family history and prevention.

Fitness coaching

People achieve better health results with accountability and someone cheering them on. However, hiring a fitness coach or personal trainer can be expensive. The average fitness coach charges a $50 hourly rate. Employees who want this route can easily do so with their wellness benefits.

Vacation

People need regular time away from work and other responsibilities to prevent burnout. A wellness stipend allowing employees to use it on vacation expenses is ideal. Employees can relax knowing that taking a break won’t cause a financial crisis.

Health monitoring devices

Fitbit is the best-known example of wearable technology that allows people to monitor their activity levels, heart rate, and more. Seeing the statistics daily can motivate people to become even more active. This is one of our favorite ways to use a wellness stipend!

Competition fees

Charities frequently host races with entrance fees to help raise funds. A wellness stipend that pays the entrance fee is a win-win for the employee’s health and the charity raising money to help others.

Meditation services

Meditation programs help employees feel calm and centered, which can help them cope with everyday stresses and promote healthier habits for winding down or finding a moment of peace in their day.

Meal delivery service

Several companies cater to people with special dietary needs by offering to deliver pre-made meals right to their door through a meal delivery stipend. This service can help employees with diabetes, heart conditions, gluten sensitivity, and other conditions eat healthier food they love.

Vision care

Prescription eyeglasses and contact lenses are expensive and often not fully covered by health or vision insurance. The same is true of LASIK vision correction surgery. Employees can ensure they have the clearest vision possible by using their wellness stipend to pay for glasses, contacts, or surgery outside of what their plans may offer.

Chiropractic care

People sometimes receive greater benefits by visiting a chiropractor or other non-traditional healthcare provider than their regular doctor or specialist. A wellness stipend can help because insurance either does not cover many of these services or provides coverage at a much lower rate than traditional medical care.

Interested in a wellness stipend for your people?

Compt is a leading employee stipends platform that allows your people to choose the best lifestyle perks for them and their always-evolving needs, no matter where and how they work.
Are you interested in learning how Compt can benefit your company and improve your employees’ well-being? Consult with our team or request a demo.

Originally published in 2021, this post has been recently updated for clarity and relevance for our readers.