In the battle to retain and attract top talent amid the challenges created by the pandemic, a new survey finds that currently employed individuals are paying closer attention to the types of benefits that are being offered.
According to findings from Voya Financial’s consumer survey of 1,000 U.S. adults, solid majorities of employed individuals expect their workplace benefits to play a more critical role in their future job selection (68%) and household financial decisions (61%). In addition, 6 out of 10 surveyed employees agree that the impact of the pandemic has made them think more carefully about the types of workplace benefits offered by their employer.
“Employees are increasingly seeing the value their workplace benefits can provide when they think holistically about their financial picture, and they are looking to their employers for solutions—and the pandemic has only increased this value by shining a spotlight on the convergence of health and wealth,” says Rob Grubka, CEO of Health Solutions at Voya Financial.
According to Voya’s research, 81% of employees are interested in employer support that would improve their overall financial wellness and 75% of working Americans want help navigating an unexpected life event, like an accident or critical illness. “This only underscores the importance employers need to place on the benefits they offer—alternatively, they may risk losing top talent in today’s competitive job market,” says Grubka.
Voya’s survey comes at a time when working Americans are voluntarily changing jobs—commonly referred to as the “Great Resignation”—as employers focus their efforts on attracting and retaining top talent. According to a PwC analysis of data from the Bureau of Labor Statistics, the quit rate for professional and business services occupations is 4.1% as of June 2021, up from about 3% in February 2020.
And while workplace benefits remain a critical part of future job selection, with open-enrollment season approaching, many employees would prefer to spend time on other “must do” tasks. For example, if they had extra time, nearly three-quarters of American workers (72%) surveyed by Voya indicated that they would rather bring their car in for maintenance, visit the dentist or prepare for tax season, instead of reviewing their annual enrollment benefits (28%).
“The open enrollment experience can be daunting for many employees—so it’s logical that some individuals, despite growing a new appreciation for their workplace benefits due to the COVID-19 pandemic, would still prefer to spend their time on other important tasks,” notes Andrew Frend, Senior Vice President of Strategy and Product at Voya.
According to Voya, individuals may have to make decisions on more than 17 benefits during annual enrollment. “This presents a huge opportunity for employers and benefit providers to work together to help simplify and personalize the annual enrollment experience—so employees can act with confidence in how they allocate their next dollar,” Frend emphasizes.
MetLife Open Enrollment Survey
A similar MetLife survey of more than 1,000 full-time employees on open enrollment finds that Millennials are gearing up for major milestones after 44% say the pandemic delayed their life plans.
According to the findings, 81% of Millennial employees are expecting to make a major life change in the next 12 months, including buying a new home (24%), changing careers (19%) or having a child (15%). They also are increasingly anxious about the state of their personal finances. More than half expressed anxiety over their financial futures, compared with 45% of employees overall.
As such, many are saying this year’s open enrollment has assumed a new level of importance to them. Nearly two-thirds say it is more important than last year’s and two in three say they plan to elect new benefits this year, compared to about one in three Baby Boomers.
In line with a desire for new benefits, most Millennials (87%) are also more interested in certain benefits this year. These include life insurance (39%), financial planning tools (34%), dental insurance (31%) and legal plans (29%).
MetLife’s survey also shows that Millennials are the generation that is most likely to expect their employers to support them in their future pursuits, from buying a new home (66% vs. 62% of employees overall) to creating a will/estate plan (76% vs. 59% of employees overall), suggesting that employer-offered benefits that meet these needs—including financial planning programs and legal plans—are of increasing importance.
“No matter what stage they’re at in their lives, as Millennials take steps to recalibrate in the coming months, they’re going to require benefits that match their evolving needs,” says Marquis Smallwood, Vice President of Workforce Engagement at MetLife. “Heading into open enrollment, it will be important for this generation to ask themselves how their lives may evolve in the coming months, and in turn, which employer-offered benefits can support them along the way.”
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