Why “Carewashing” Is a Risk Benefit Leaders Can No Longer Ignore

June 1, 2026

Employee wellness has become a central focus for organizations seeking to attract and retain talent. Expanded mental health coverage, employee assistance programs, and flexible benefits are now common across many workplaces. Yet despite these investments, a growing number of employees still feel disconnected, undervalued, or unsupported at work. Recent reporting from Employee Benefits News highlights a troubling paradox: when wellness efforts are not supported by leadership behavior and workplace culture, they can do more harm than good.

This disconnect has led to the rise of what Harvard Business Review has termed “carewashing.” Carewashing occurs when organizations promote wellness initiatives while daily work experiences contradict those messages. While benefit leaders may be acting in good faith, employees notice when policies and realities do not align. Data referenced in the article from Gallup indicates that fewer than one quarter of employees strongly feel their employer prioritizes their well-being. That gap undermines trust and can damage both retention and employer reputation.

As business strategist Hanna Hasl-Kelchner explains in the article, wellness cannot live in a silo. It must be part of an integrated culture shaped by both leadership behavior and organizational decision making. Employees gauge whether an organization truly cares based on the everyday actions of their direct managers, including how flexibility is applied, how challenges are acknowledged, and how openly leaders communicate.

Periods of organizational change, such as return to office transitions or workforce restructuring, are particularly revealing moments for employees. How leaders respond during these times sends a strong signal about whether well-being is truly valued. Listening to employee concerns, explaining decisions clearly, and acknowledging the challenges people face can help reinforce trust. Even simple actions, such as regular check-ins or asking employees what would make their workdays more manageable, can have a lasting impact on morale and engagement.

These everyday interactions are also where benefit programs either reinforce that trust or fall short. From a benefits standpoint, coordination matters most when employees need support in real time. Wellness programs are far more effective when leaders understand what is available, reference benefits appropriately, and help connect employees to resources when challenges arise. That level of alignment depends on strong administrative support, clear communication, and systems that allow benefits to work as intended in practice, not just on paper.

Amalgamated Employee Benefits Administrators (Amalgamated) supports organizations by helping ensure benefit programs are administered accurately, communicated clearly, and aligned with participant needs. Amalgamated works behind the scenes to help plans operate smoothly so benefits reinforce, rather than contradict, an organization’s stated values.

Amalgamated’s approach is deeply influenced by its union heritage. Built on a mission to serve working people, our organization has long understood that trust is earned through consistency, fairness, and follow through. Benefits are not slogans; they are commitments to the people who rely on them.

As employers continue to expand wellness offerings, success will depend less on what is promised and more on how those promises are supported every day. To learn more about how Amalgamated helps organizations administer benefits that support trust, accountability, and lasting employee well-being, contact us today.