The Benefits of Employee are becoming increasingly more important for employers and employees alike. Benefits play a pivotal role in retaining current workers, while also helping to attract top talent in the recruiting process.
One trend that has become more prevalent in employee perks is the idea of personalized, or flexible, offerings. These allow employees to pick and choose benefits that fit each individual’s needs.
Earlier this year, MetLife released their 2018 U.S. Employee Benefits Trends Study which not only explored the changing landscape of benefits (including how flexibility is more important today) but also other workplace trends.
Let’s take a look at some of the data revealed in the report. Click on the link above to check out the full survey results.
EMPLOYEES WANT MORE NON-TRADITIONAL BENEFIT OFFERINGS
The MetLife survey was taken by two different audiences: employers and employees. 2,500 benefits decision-makers took the employer part of the survey, while more than 2,600 workers took the employee survey.
The report is broken out in five chapters. We’ll be focusing on the findings from the 4th chapter, where employee perks are the main topic.
This chapter starts by saying that employees today want three things from their employee benefits: flexibility, choice, and non-traditional options.
The first statistic shows that workers are willing to contribute more to the costs of benefits if it means having a choice of benefits. 60% of employees felt this way, compared to 52% in last year’s survey.
This is even more true for young employees (64%) and young parents who need tailored benefits to help with family needs (84%).
An added benefit to offering flexible benefits is that they contribute to a more loyal workforce. The report showed that 73% of employees agreed that having customized benefits increased their loyalty to their employer.
And perhaps the most eye-opening statistics from the survey, 83% of employees said they would be willing to take a small pay cut if it meant having a better choice of benefits.
Also, both employees and employers agree that non-medical benefits are important:
- Employees – 60%
- Employers – 62%
FINANCIAL WELLNESS BENEFITS ARE MORE IMPORTANT THAN EVER
The MetLife survey also uncovered that employees today recognize the importance of financial wellness as well as retirement saving.
74% of employees said that saving for retirement is a priority, and 48% said they are concerned about outliving their retirement savings.
Because of these concerns, employees are turning to their employers to help address financial wellness. 38% of employees agree that their employer should help solve financial security concerns. Meanwhile, 50% of employees and 59% of employers say that employers have a responsibility for the financial wellbeing of their employees.
Next, the report shows just how interested employees are in learning more about financial wellness:
- 84% said financial wellness programs are a must-have or nice to have
- 57% have an interest in “a comprehensive financial wellness program”
- Yet, just 18% of employers are offering financial wellness programs, planning, education, workshops, or tools that address this issue
Additionally, helping to educate employees on their finances can have numerous positive outcomes:
- 64% of employees who are offered some financial education or workshops are more likely to feel financial fit
- 55% of employees who have access to financial wellness programs say they are financially well
- However, 46% of employees say they don’t have access to financial education
THE IMPACT OF BENEFITS ON EMPLOYEES
The next part of this chapter of the report goes into overall benefits and how they impact employees. 87% of employees say that having benefits provides peace of mind for the unexpected.
In a statistic that employers should take note of given today’s recruiting challenges, 62% of employees said that the perks offered were an important reason why I decided to join this company.
Benefits also help employees worry less. 71% of employees agreed that the benefits they receive enable them to worry less about unexpected health and financial issues (61% of employers also felt this way).
Also, 65% of employees said that non-medical benefits (critical illness, accident coverage, etc.) help limit their out-of-pocket medical expenses.
Despite the rise in importance of voluntary and non-traditional perks, traditional benefits are still seen as valuable by employees. When asked which non-medical benefits help to reduce financial stress (not including retirement plans), here’s how employees responded:
- Life insurance – 48%
- Auto insurance – 46%
- Dental insurance – 46%
- Home insurance – 41%
Lastly, when asked if they are satisfied with the benefits currently offered and received through their employer, 71% said they are. While a positive sign, there is still room for employers to improve, especially as new trends continue to emerge with employee benefits.
OTHER IMPORTANT FINDINGS FROM THE ANNUAL METLIFE BENEFITS TRENDS STUDY
There’s a lot of data revealed in the full MetLife study. While we just focused on one part of the report, we also wanted to provide some other statistics that were revealed in the findings:
- 81% of workers say having work/life balance makes them more productive at work
- 76% of workers feel that being able to work from home means their employer trusts them
- 71% of employees say that flexible work schedules are the most desired benefit that would help with work/life balance
- 77% of employers feel they are committed to their employees’ success, though just 65% of employees feel their company is committed to their success
- 67% of employees trust their employer to do the right thing
- 73% of employees feel a strong sense of purpose at their job
The original article by: Extensis