As workers search for key financial wellness benefits within the workforce, just-released research from MetLife today finds employers can’t afford to forego top workplace features.
MetLife’s annual U.S. Employee Benefit Trends Study (EBTS) reveals feeling “cared for” at work is a key driver to employee wellness, despite 42% of employees stating they don’t feel this from their employer.
“Our research shows care is not only a differentiated driver of the employee experience – but also a proven workplace metric to measure employer outcomes,” said Todd Katz, executive vice president, Group Benefits at MetLife. “As the economy and labor market remain volatile and workplace trends fluctuate, employers can’t afford to overlook employee care. When organizations genuinely demonstrate employee care, they are much more likely to weather macro challenges effectively and rise to the top for current employees and job seekers alike.”
MetLife’s study found benefits satisfaction fell to 61% in 2023, down 3% from 64% in 2022 and reaching its lowest point in the last decade. At the same time, holistic health among employees has severely declined in the past year. Almost halt (48%) of employees cited financial concerns as a cause of lower mental health, up from 31% last year.
The findings come as more employees are facing a financial strain brought on by inflation. Fifty-five percent of workers say they are living paycheck to paycheck, and over 90% of employees surveyed say they are worried about inflationary pressures and rising costs.
For women, more are worried over their ability to pay down debt, like credit cards, mortgage, and student loan debt, while others are nervous they won’t be able to save for a home, car, or college, and some are concerned over not having enough money to cover out-of-pocket medical costs not covered by health insurance.
MetLife says employers have not yet fully grasped the gravity of employees’ financial stress—83% of plan sponsors said that their employees are satisfied with the benefits they receive, despite only 55% of employees believing they are financially healthy.
As a result, more employees are listing the core benefits they’d like to see from employers, including medical/health insurance (79% of employees surveyed), paid leave (77%), 401(k) or another defined contribution retirement plan (75%), dental insurance (73%), and vision care insurance or a discount program (70%).
Employee interest in financial wellness tools and resources has also increased dramatically, finds MetLife. The proportion of workers who view those offerings as a “must have” increased from 18% in 2019 to 45% in 2023. The number of employers providing financial wellness tools and resources to employees has also doubled, going from 25% to 54% in that same time frame.
MetLife’s 21st Annual U.S. Employee Benefit Trends Study includes 2,840 interviews with benefits decisionmakers and influencers at companies with at least two employees. The employee survey consists of 2,884 interviews with full-time employees ages 21 and over, at companies with at least two employees in the U.S.
SEE ALSO:
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Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.
