Roughly seven in 10 employees (71%) plan to spend more time reviewing voluntary benefit options offered by their employers as a result of COVID-19 than they did during the last enrollment period, and more importantly, more than half (53%) plan to make changes to their benefits coverages.
These are among the key findings from a consumer survey released Sept. 16 by Voya Financial, Inc., showing how working Americans—Gen Z in particular—will be looking to their workplace benefits for health and wealth support due to COVID-19, especially as they prepare for open enrollment in the midst of a global pandemic.
“With COVID-19 part of our daily lives for the foreseeable future, our new survey reveals that many are focused on ways that they can protect the health and wealth of themselves and their families, and they recognize workplace benefits are a way to do just that,” said Rob Grubka, president of Employee Benefits, Voya Financial.
“This upcoming open enrollment season … presents an opportunity for individuals to rethink and revaluate previously untapped benefits offered by their employer,” Grubka continued. “This is not the year for employees to hit the ‘default button’ on their workplace benefits, and I find it encouraging to see that more working Americans plan to take positive steps during their next open enrollment period.”
When asked which employee benefits would help better manage their current needs, health savings accounts (HSAs) or flexible spending accounts (FSAs) were mentioned by nearly four-in-10 surveyed employees (38%).
Gen Z expected to be most active
From a generational standpoint, interestingly, Gen Z had the highest level of agreement when it came to wanting more information about their benefits, expecting to spend more time reviewing their benefits and planning to make benefits changes. Specific findings include:
- Want more information from their employer outside of enrollment period: Gen Z had the highest level of agreement at 82%, Millennials at 79%, Gen X at 77% and Baby Boomers at 70%.
- Will spend more time reviewing their workplace benefits: Gen Z had the highest level of agreement at 83%, Millennials at 72%, Gen X at 71% and Boomers at 63%.
- Plan on making changes to their benefits: Gen Z was significantly more likely to agree at 74% vs. other generations—Millennials at 60%, Gen X at 53% and Boomers at 28%.
“As the youngest and newest workers, it makes sense that Gen Z would be most engaged on benefits as they have had the least amount of time in the workforce, less familiarity with employee benefits options and limited experience making employee benefit decisions compared to older colleagues,” Grubka said. “The pandemic has presented employers with a unique opportunity to help educate Gen Z about the value of workplace benefits early in their careers, during a time when—historically—individuals tend to be less concerned with their health and financial wellness needs.”
Despite generational differences, the survey also points out that it will be key for all American workers to follow throughwith their intentions to make benefits decisions during their next open enrollment period. While top of mind, nearly half of benefit-eligible individuals (49%) indicated that they would rather plan a home improvement project or review their home cable and internet options vs. only 37% who said they are most likely to review their employee benefits options offered through their employer.
“It’s understandable—especially as more Americans are working from home—to want to focus your energy on home improvements versus reviewing your workplace benefits,” said Grubka. “But the survey also finds that becoming more financially secure is the top priority for nearly half of American workers (49%) as life eventually shifts back to normal—cited more frequently than spending additional time with family and friends (41%), leading a healthier lifestyle (40%) and traveling somewhere new (25%). A good place to start to help achieve this goal is by looking closer at the benefits offered by your employer—especially in the midst of a global pandemic.”
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
