American workers are prioritizing workplace benefits over higher salaries, finds the latest research from Voya Financial.
Heading into the 2024 open enrollment season, which commences November 1, the research explores the savings perspectives of 1,005 U.S. adults ages 18 and over, featuring 440 full- and -part-time workers.
In its findings, Voya notices a behavioral shift among workers—as more rank their physical, emotional, and mental wellbeing over finances. Nearly three-quarters (72%) of employed Americans strongly or somewhat agree taking a job with a slightly lower salary for better healthcare and medical coverage, including lower premiums and out-of-pocket costs. Millennials (80%) and Gen Zers (60%) were likelier than all other age cohorts to prioritize this.
Furthermore, Voya’s research found that 59% of employed Americans strongly or somewhat agree they would take a lower salary for employer contributions to health savings and spending accounts, and 54% would rather have better access to voluntary benefit offerings such as critical illness, hospital indemnity, disability income and accident insurance. Another 55% would prefer a slightly lower salary for better mental health benefits and support.
It’s no surprise then that over half of working Americans would be more likely to stay with their current employer if provided access to health spending and savings accounts (51%), voluntary benefit offerings (51%) and mental health benefits and resources (54%).
“The consistent trend of rising healthcare costs, coupled with the fact that these needs are anticipated to increase as one ages, is having a tangible effect on individuals,” said Nate Black, vice president, Health Solutions Product at Voya Financial. “As a result, this data highlights that priorities are shifting regarding individuals’ broader health care needs, particularly when it comes to support from their employer. With open enrollment nearing, employers have a critical role to play helping their workforce leverage and maximize the full spectrum of their workplace benefits and savings offerings.”
A higher number of workers are preferring health savings resources as more recognize the influence medical costs could have on retirement. Voya’s research also found that 51% say healthcare costs could have a severe or major impact on their ability to save for the future.
“While it’s encouraging to see employees’ interest in these solutions as we approach open enrollment, now is the time for employers to help their workforce understand the true value these employer-offered resources can provide — which can make a difference in retirement readiness,” added Christin Kuretich, vice president, Supplemental Products at Voya Financial. “Many individuals may not realize that voluntary benefits, for example, can also help lessen the financial impact of a covered event such as an illness or accident and can potentially reduce the need to tap into a retirement account for any out-of-pocket medical or other expenses.”
Others are looking outside of healthcare benefits and instead, focusing on retirement and voluntary benefits. Sixty-seven percent say they would take a lower salary for a greater company match to their employer-sponsored retirement account, 63% would prefer better leave policies including maternity and paternity leave, paid time off (PTO), and mental health days, and 71% would rather work in a hybrid or remote environment.
Value of digital guidance
As workers express interest in receiving support that maximizes workplace benefits (75%), Voya encourages employers to incorporate digital guidance tools to their plans, which can help in “simplifying processes, saving time and fostering informed decision-making.” The research found that half of workers are more likely to stay with their employer if offered access to digital tools and advice.
“Personalized digital guidance experiences, designed to help employees make more-informed decisions with a synchronized view of their whole financial life, are becoming increasingly important to be able to support the evolving needs of individuals and their households,” added Kuretich. “This is crucial not only during open enrollment but also year-round to educate employees on their benefits, ensuring they are fully equipped to leverage their workplace benefits and savings effectively.”
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.
