In recent years, a new term, carewashing, has emerged in discussions about workplace culture and employee benefits.  The concept reflects a growing concern that companies are superficially adopting caring practices and policies—often as part of their branding—without genuine commitment.  Modern employers aiming to foster authentic and supportive workplace environments should reflect on this term and how it relates to their positioning with their external clients as well as their employees.

When we shine a spotlight on employee benefits, carewashing refers to the practice of companies presenting themselves as caring and employee-focused, without implementing substantial, changes that truly benefit employees. In some instances, employers may implement meaningful programs, but since employees are unable to take advantage of them due to cultural limitations they are still viewed as carewashing.  For example, a company might promote its new mental health day policy or wellness app extensively but fail to address systemic issues like excessive workloads, inadequate mental health resources, or poor management practices. The result is a veneer of care that can mislead both current and prospective employees about the organization’s true commitment to well-being. 

It is imperative that organizations work to combat carewashing because of the impacts it can have on the business, employees, and their families.

• Genuine care and support for employees are critical for building trust and engagement.  According to Gallup, organizations that show true commitment to their employees’ well-being experience higher levels of engagement and lower turnover rates¹
• When employees recognize that initiatives are merely cosmetic, McKinsey & Company indicates it can not only lead to disengagement and turnover, but reduced productivity as well
• Negative perceptions about carewashing can damage a company’s reputation, making it harder to retain and attract top talent. A Harvard Business Review article highlights that companies perceived as inauthentic in their employee care practices can face significant reputational damage
• Although on the surface carewashing is not illegal, it could lead to legal risks (e.g., promoting care but not giving adequate support) and certainly presents ethical concerns

To mitigate the risk, employers must self-reflect and talk openly about their approach to employee benefits, ensuring their programs reflect their culture and vice versa.  In some instances, offering programs without cultural support may do more harm than good.  Using these guiding principles will go a long way to reduce the risk of carewashing:

• Set a holistic approach considering mental, physical and financial health
• Focus on implementing highly effective programs, invest in understanding the impact and align solutions with employee needs while considering business impact (positive and negative)
• Involve front line managers in roll-out campaigns to convey the importance of the program, understand their concerns and work together to find solutions
• Work toward a culture of caring that includes training and advocacy.  If that is not possible in your organization, pinpoint solutions that can be genuinely adopted, appreciated and accepted
• Be transparent; every organization is unique.  It’s better to make incremental, successful change than provide an offering that provides little to no value to employees and creates reputational risk for the organization

Although the terminology will change, any program design that undermines the trust of employees or clients will lead to disengagement and dissatisfaction.  Make sure the programs you implement within your benefit offering do not mislead employees.  Employees often tap into employee benefit programs during some of the direst times in their lives; nobody wants to feel carewashed when what they really need in that moment is care. 

If you could use objective guidance on building and prioritizing realistic benefits initiatives, or evaluating your current state for carewashing red flags, please get in touch with our team.

¹ Witters, Dan. “Showing That You Care About Employee Wellbeing.” GALLUP. https://www.gallup.com/workplace/391739/showing-care-employee-wellbeing.aspx