Regardless of company size and despite difficult economic circumstances, a recent survey found only 10 percent of employers intend to reduce benefit offerings. This is good news for employees, particularly given that 49 percent of them reported that they are counting on employer-based programs to help with their financial protection needs.
Researchers from GFK Custom Research determined that younger workers were more likely to express this attitude, with 55 percent of Gen X employees and 66 percent of Gen Y workers holding the point of view. These employees were also more likely to hold a risk-averse view than older colleagues, according to researchers. With more Americans concerned about having enough money in retirement and younger workers believing that Social Security benefits will be reduced or unavailable by the time they retire, preferences have changed.
Young workers are expressing a desire for lower, more certain returns on their investments and a greater interest in employee benefit programs. Retirement savings have reportedly been eroded in recent years, and workers are expressing greater interest in financial education programs that will aid them in retirement planning as a result, among other signs exhibiting their concern for the future.
Many employees are willing to pay more if that is necessary to maintain their benefits, researchers report, and expressed interest in additional voluntary benefit packages. More than half of Gen X and Y employees would like to see a wider array of voluntary benefits, compared to 43 percent of baby boomers, suggesting an age-based attitude shift.
Such coverage could include dental or vision insurance, among other options, in addition to standard health coverage that many offer. Some research suggests that having additional coverage improves employee wellness and decreases eventual healthcare costs as a result.
Employers are reportedly underestimating the impact that this type of compensation can have on employee loyalty, despite recognizing that employee-paid benefits may be more important in the next five years than they are today. Only 57 percent of employers cited health insurance coverage as an important driver of loyalty, compared to 66 percent of employees, suggesting perceptions are not fully aligned. With retirement and non-medical benefits, researchers report a wider gap, almost 20 percent in some cases.
This may be particularly relevant in light of decreasing employee loyalty, which the survey found to have dropped to a seven-year low. Only 42 percent of workers feel a strong loyalty to their employers, while one-third of them would like to change employers this year. That percentage is even higher for Gen X and Y workers, who place more importance on benefits, suggesting an opportunity for the nation's employers to court current and potential talent.
