Eight Ways HR Leaders Can Create Effective Wellness Stipend Programs

Forbes

31-07-2025

With employee well-being becoming a higher priority in recent years, many organizations are turning to wellness stipends as a flexible and inclusive way to support their teams. These programs can help cover a wide range of wellness-related expenses, such as fitness memberships and mental health support, that take the holistic employee into account.
If you're planning to build out a wellness stipend initiative, you'll need to carefully consider every detail, from budgeting and communication to equity and personalization. To help you figure this out, eight members of Forbes Human Resources Council share their expert strategies for creating wellness stipend programs that are accessible, meaningful and aligned with employee needs.
1. Survey Employees To Understand Their Needs
HR leaders must start by surveying employees to understand their wellness needs. Then, they can offer flexible stipends that cover diverse expenses, from gym memberships to mental health apps. It's best to keep it simple, inclusive and easy to access so employees feel genuinely supported. - William Stonehouse, Crawford Thomas Recruiting
2. Define Eligible Expenses
To create a strong wellness stipend program, companies should assess employee needs, define eligible expenses (like gym memberships, therapy, wellness apps or employee assistance program services) and set a meaningful budget. The program should be flexible, easy to access and clearly communicated. Ongoing feedback and tracking ensure it remains relevant and supports overall well-being. - Eiman Alhammadi, ADNOC
3. Set Clear Categories With Broad Guidelines
They can start by surveying employees to learn what wellness expenses matter most to them. Leaders should set clear categories like fitness, mental health or hobbies, and keep guidelines broad to allow personal choice. They should offer easy reimbursement or prepaid cards, communicate the benefit often and gather feedback to refine the program so it truly supports well-being. - JacLyn Pagnotta, Rose Associates Inc.
4. Anchor Benefits To Use Cases Across Lived Experiences And Life Stages
Wellness design should reflect lived reality, not HR assumptions. Stipends should be engineered as systems of equity, not perks of privilege. You should anchor them to real-life use cases across income levels, caregiving demands and health disparities, and integrate them with total rewards, tailoring support to life stages and emerging needs. That's how programs become indispensable, not just available. - Katrina Jones
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5. Partner With Diverse Vendors
HR should start by surveying employees to identify top wellness needs—mental health, fitness, nutrition, childcare and so on. Then, they can design flexible stipend options with tiered reimbursement levels, automatic payroll integration and annual usage tracking. It's a good idea to partner with diverse vendors to ensure equity and inclusivity across all income levels. - CJ Eason, JobFairGiant.com
6. Set A Per-Employee Budget To Allocate Toward Their Personal Wellness Needs
You can begin with a per-employee budget that the CFO and finance team are able to allocate to the organization. Then, you can survey employees' needs and itemize the top 15 to 20. The next step would be to allow the employees to allocate their budget towards the wellness needs that suit them. This allows for three things: showing you care, aligning with employee needs and staying within budget. - Subha Barry, Seramount
7. Prioritize Communication And Education
It's best to start with understanding your workforce via surveys, demographics and life stage analysis to uncover diverse needs. You can leverage these insights, budget and data to create personalized well-being choices. Effective communication and education are crucial for the why. The program must continually evolve, tracking utilization, adapting to gaps and changing needs to ensure ongoing relevance and value. - Sherry Martin
8. Track Usage And Continuously Improve The Program Based On Feedback
You can empower every employee by co-creating through surveys to address their needs. You can build a foolproof wellness stipend by offering flexible, inclusive benefits, clear policies, easy access and personalized options. You should avoid complex reimbursements and create awareness with strong communication. It's a good idea to track usage and gather feedback for continuous improvement for holistic employee well-being. - Sheena Minhas, ST Microelectronics