Executive Summary

^{Isabela Conceição Braga; Bruno Gomes Pereira}

^{Summary prepared by the ResumeAI tool, an artificial intelligence solution developed by the Pecege Institute focused on synthesis and writing.}

This study analyzed the contribution of compensation and benefits practices to employees’ psychological well-being, based on the perception of MBA students in People Management from a private institution in São Paulo. The investigation sought to identify the perception of the benefits offered, evaluate their relationship with mental health, and propose recommendations to align organizational policies with the psychosocial needs of workers. The relevance of the analysis lies in the growing pressure for performance and the transformations in the corporate world, which position mental health as a strategic pillar for organizational sustainability. Neglecting psychological well-being results in costs such as absenteeism, presenteeism, decreased productivity, and turnover, making the search for effective solutions imperative (WHO, 2022).

Compensation and benefits policies are tools that influence employees’ perception of appreciation and security. Their effectiveness, however, depends on the ability to transcend the fulfillment of contractual obligations to connect with the psychosocial needs of the workforce. Literature indicates that environments that promote well-being are more likely to retain talent and foster innovation (Ferreira; Mendes, 2020). The articulation between financial incentives and mental health support is configured as a competitive differential, reflecting management maturity. The absence of an integrated approach can lead to a scenario where companies invest in robust benefits that fail to mitigate high levels of stress and burnout.

The theoretical foundation is based on approaches to motivation and work health. Herzberg’s Two-Factor Theory (1959) is a fundamental framework, distinguishing hygienic factors (salary, benefits) from motivational factors (recognition, growth). According to the theory, good benefits prevent dissatisfaction but do not, by themselves, guarantee satisfaction. For motivation to occur, the organization must invest in elements that promote individual development. Recent studies, such as those by Siqueira and Padovan (2020), corroborate this view, highlighting that the combination of fair salary policies with benefits focused on mental health creates a virtuous cycle of well-being and productivity. Costa and Almeida (2023) reinforce that remuneration strategies aligned with emotional needs are determinants for building healthier corporate environments.

The urgency of the topic is amplified by global data. The World Health Organization (WHO, 2022) warns that disorders such as anxiety and depression, associated with work, generate trillion-dollar economic losses annually. The transition to flexible and digital work models, although beneficial, has intensified pressures on employees, blurring the boundaries between personal and professional life and demanding a more proactive stance from companies in mental health care (Santos; Lima, 2021). Environments that do not prioritize well-being become susceptible to organizational toxicity, manifested in demotivation and performance decline (Bakke; Oliveira, 2021). Therefore, analyzing employees’ perception of the effectiveness of benefit policies is essential to diagnose gaps and guide strategies.

The research problem that guided this work was: in what way do compensation and benefits strategies contribute to employees’ psychological well-being? The hypothesis was that, although traditional benefits are valued, they are insufficient to promote well-being in isolation, requiring integration with flexibility policies, mental health support, and a culture of empathetic leadership. The choice of MBA students in People Management is justified by their dual role: they are employees who experience the effects of these policies and future managers responsible for their implementation, which gives their perceptions strategic and practical relevance.

The study was an applied research, with a quantitative approach and descriptive design, conducted by the survey method (Gil, 2019), which allows the collection of standardized data for pattern identification (Babbie, 2010). The quantitative approach was fundamental to numerically measure perceptions through scales, allowing statistical analyses to describe the frequency of stress, satisfaction levels, and the perceived impact of benefits on psychological health (Creswell, 2021).

The data collection instrument was a structured questionnaire on Google Forms, based on theoretical references (Herzberg, 1959; Siqueira; Padovan, 2020). The questionnaire contained 12 questions in three blocks: demographic and professional profile; perception of remuneration and benefits; and perception of mental health. The questions were predominantly closed-ended, using five-point Likert scales and multiple choice, in addition to an open-ended question for suggestions. The open-ended responses were analyzed using Bardin’s content analysis (2011), allowing for the extraction of qualitative insights.

The research was conducted with MBA students in People Management from a private institution in São Paulo. The sample was non-probabilistic by convenience, with 203 valid participants, enrolled in the course and with an active employment relationship. The choice of the target audience was strategic, as they combine practical experience with theoretical training. The number of participants was considered robust for descriptive analyses, according to recommendations by Hair et al. (2009) for samples larger than 100 respondents.

Data collection occurred remotely between May 10 and 20, 2025, via a questionnaire link in WhatsApp groups. Participants were informed about the objectives, voluntariness, and guarantee of anonymity, consenting through the Free and Informed Consent Term (TCLE). The data were organized in Microsoft Excel and subjected to descriptive statistics (frequencies, means, percentages) for interpretation aligned with the study objectives (Severino, 2016).

The profile of the respondents revealed a predominantly female sample (72.4%), concentrated in the age range of 25 to 44 years (75.4%) and in positions of Technicians/Analysts (45.8%) and Supervisors/Coordinators (26.1%). This composition reflects the reality of the People Management area. The female predominance suggests greater sensitivity to benefits related to balance and mental health, given that women frequently face an overload of social roles (Sousa et al., 2021). The concentration in intermediate positions ensures that perceptions are anchored in the daily experience of organizational policies (Siqueira; Padovan, 2020).

The results on the evaluation of benefits indicated a predominantly positive perception, with 68.9% of participants classifying them as “satisfactory” or “very satisfactory”. However, one-third of the sample showed neutrality (15.3%) or dissatisfaction (15.8%). Neutrality is a point of attention, as it may signal that the benefits, although existing, are not perceived as a differential. This finding dialogues with Bakke and Oliveira (2021), who argue that static benefit packages not aligned with contemporary demands lose their effectiveness. The lack of personalization can turn a potential motivator into an indifferent item.

The analysis of the perceived impact of benefits on psychological well-being revealed a critical gap. Only 28.1% of respondents stated that the benefits contribute “significantly” to their well-being, while the majority (53.7%) perceive “partial” help. This data is alarming, as it shows that even when benefits are satisfactory, their effect on mental health is limited. This corroborates the WHO guidelines (2022), which point to the insufficiency of conventional benefits to deal with the psychological demands of modern work. The discrepancy suggests that companies need to go beyond the basics, incorporating psychological support programs and flexibility policies.

This disconnection is evidenced by the reported frequency of stress: 48.3% of participants stated they live with “constant” or “frequent” stress. This finding exposes a paradox: how can there be high satisfaction with benefits and, at the same time, such high levels of stress? The answer may lie in Karasek’s (1979) Demand-Control model, which postulates that occupational stress is not reduced solely by resources (benefits), but by the combination of high demands with low control over tasks. Thus, an excellent benefits package does not neutralize the effects of an excessive workload or a culture of constant pressure.

The perception of mental health actions in companies revealed that 49.3% of respondents do not identify consistent initiatives in their organizations. Added to the fact that only 18.7% believe that psychological well-being is “fully” valued, a gap between discourse and practice is evident. Many companies promote one-off campaigns but fail to integrate mental health as a strategic pillar (Siqueira; Padovan, 2020). This lack of consistency generates distrust, causing employees to perceive initiatives as marketing, rather than a genuine commitment. Psychological safety, essential for engagement, is only built with consistency (Kahn, 1990).

The suggestions collected in the open-ended question (Bardin, 2011) were grouped into four axes. The first was the need for structured mental health programs, including facilitated access to psychotherapy. The second was the search for greater flexibility and balance in workload, connecting to the need for greater control to mitigate stress (Karasek, 1979). The third axis pointed to the importance of culture and leadership, with criticisms of unprepared managers and the lack of listening channels, highlighting that well-being depends on the quality of interpersonal relationships.

The fourth axis of suggestions was the need to review benefit packages so that they dialogue with trends such as integral well-being and support for physical activities. This demand for modernization explains the neutrality of part of the sample and reinforces that benefits need to be dynamic to maintain their relevance (Ferreira, 2022). The integration of these qualitative findings with quantitative data allows for a robust diagnosis: employees value benefits, but consider them insufficient and disconnected from their real needs, longing for a more holistic approach that combines material resources with emotional support, flexibility, and a culture of trust.

The discussion of the results confirms the central thesis of the study. The identified paradoxes — high satisfaction with benefits versus high stress; discourse of appreciation versus perception of neglect — are explained by Herzberg’s Two-Factor Theory (1959). Benefits act as hygiene factors: their presence prevents dissatisfaction, but does not proactively generate satisfaction and well-being. For this, motivational factors are necessary, such as recognition and a psychologically safe environment. Bakker and Demerouti’s Job Demands-Resources (JD-R) model (2007) complements this analysis, showing that to combat burnout, organizations need not only to offer resources (benefits) but also to reduce excessive demands (workload).

This study concludes that compensation and benefits practices, although positively evaluated, are insufficient to consistently promote psychological well-being. The results revealed a paradoxical scenario, in which satisfaction with benefits coexists with high levels of stress and a perception that companies do not fully value mental health. The analysis demonstrated that traditional benefits act as hygiene factors that prevent dissatisfaction but do not proactively generate well-being. The gap between organizational discourse and effective practice was one of the most significant findings, indicating that many mental health initiatives are perceived as isolated. Practical implications point to the need for organizations to transcend the traditional compensation model, adopting a holistic approach that integrates financial benefits with mental health policies, flexibility, and the development of empathetic leadership.

The study’s limitations include the specific profile of the sample (MBA students in People Management) and the female predominance, which may limit the generalization of the results. Future research could broaden the scope to different audiences and use qualitative methodologies to explore the subjective nuances of the relationship between work and well-being. Despite the limitations, the study offers valuable contributions by providing a diagnosis of employee expectations and reinforcing the importance of aligning management policies with the psychosocial demands of the 21st century. It is concluded that the objective was achieved: it was demonstrated that compensation and benefits practices, although positively evaluated, are insufficient to promote psychological well-being in isolation, requiring integration with mental health strategies, flexibility, and humanized leadership. Only this integrated approach will allow organizations to transform mental health care into a sustainable competitive advantage.

References:
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Sousa, L.; Almeida, R.; Pereira, S. Perception of organizational support and mental health: a study with private sector workers. Revista Brasileira de Psicologia, v. 14, n. 2, p. 45–60, 2021.}

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Executive summary from the Final Project of the Specialization in People Management from the MBA USP/Esalq

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