A new study has found there are four types of employees, and they have one thing in common: Their No. 1 financial goal is achieving retirement security.
New LIMRA Secure Retirement Institute (LIMRA SRI) research identified the four distinct worker personalities, examining how their workplace perceptions influence their experiences and mindset.
These segmentations can be valuable in helping to design, communicate, enroll and manage retirement programs. Overall, the study found these personalities transcended age, gender and income.
The four categories are:
- Satisfied (and content): every employer’s dream worker; they are enthusiastic, passionate, positive and proud.
- Settled (it’s just a job): less satisfied with their employers and their benefits, but far from disengaged.
- Resigned (but probably sticking it out): not actively dissatisfied, but largely neutral about their employers, more likely to be dissatisfied with their own jobs and role in the workplace (than Settled or Satisfied workers); these workers tend to have larger financial stresses and concerns than other segments.
- Restless (seeking opportunity elsewhere): these workers have an eye out for future opportunities and one foot out the door. They are the least satisfied worker segment, neither invested nor deeply engaged in their current careers but highly competent and confident.
Researchers found virtually all “satisfied” workers (99%) felt workplace benefits were critical to their financial security and they were nearly twice as likely to feel their retirement benefits were adequate, compared to the other worker segments.
“Satisfied” employees are more likely to feel positive about their employer, their employer-sponsored retirement benefits, and more likely to feel their employers help them plan for retirement.
They were also more likely to participate in their employer-sponsored Defined Contribution plan and have an employer match.
As a net result of all this, satisfied employees are half as likely to leave their current position as workers identified as “restless.”
That’s important to employers today. With the unemployment rate at its lowest level in 50 years, competition for strong employees is high and employers are actively seeking effective ways to attract and retain good workers.
Opportunity to convert?
So how can employers increase their percentage of “satisfied” workers while decreasing the percentage of “restless” workers? By offering a strong retirement plan.
In many cases, LIMRA SRI says workers in the “resigned” category could be converted to become “satisfied” employees if employers helped them address some of their financial challenges and stress.
Not surprisingly, the study found more resigned and restless workers are financially stressed: 51% of resigned workers and 48% of restless workers said they were financially stressed, compared with just 34% of satisfied workers and 39% of settled workers.
As a result, satisfied and settled workers were far more likely to feel financially secure and optimistic about their financial future than resigned and restless workers.
Fewer than 10% of resigned workers felt they were very knowledgeable about investment products and services and three-quarters of them are concerned about meeting their financial obligations.
Deploying a financial wellness program and leveraging and promoting the financial educational tools and resources from their plan providers could help these workers alleviate some of the stress and dissatisfaction that have undermined their enthusiasm for their positions and the company.
Future financial needs worry all worker segments
LIMRA SRI finds all workers are more comfortable in their ability to meet more immediate and short-term financial responsibilities (paying current health care costs and paying for their current needs) than longer-term needs (like future health care and retirement), but resigned workers are much more likely to feel concerned about meeting their current financial obligations than the other workers.
When it comes to longer-term goals—saving for retirement and future health care costs—levels of concern for all workers rise considerably. Nine in 10 are concerned about saving enough for retirement and more than 8 in 10 are concerned about saving for future health care costs.
More findings from the study can be viewed: Understanding the Workforce: The 4 Personality Segments to Consider for Retirement Benefits Strategies.
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.
