The Great Resignation is not just about finding the next, more satisfying job. An estimated 30% of U.S. employees who say they are considering a job switch this year list benefits programs–specifically, retirement benefits–as a leading factor for change.
For employees in TIAA’s new 2022 Employee Retention Survey, the majority (82%) say that their benefits are highly important in deciding whether they will change jobs. And retirement benefits (77%) are one of the most desired and valued.
This dovetails with SHRM’s latest Employee Benefits Survey which reported that retirement benefits saw a big jump from the 2020/2021 survey to rank as the second-most important type of benefit along with leave benefits. Retirement benefits were cited as important by 55% of employers in the previous survey, but that percentage soared back near historical norms at 82% in the 2022 survey–a 27% increase.
The jump in value for retirement benefits is a likely byproduct of Americans’ concern about the future of Social Security. Seven in 10 respondents in a PlanGap survey said they doubt they will receive their promised Social Security benefits in retirement.
Workers want more from employers
Employers have their work cut out for them as TIAA’s report reveals a majority (68%) of employees are seeking better information about their retirement savings plans from their employer. Employees also say more educational resources and communications clarifying benefits can help build trust. Workers who trust their employer place an even higher importance on benefits when making career decisions.
Other key survey findings include:
- Just 16% of employees say they received information about their current retirement plan before being hired.
- Less than half (42%) say their benefits were communicated when they first started their job.
- Just over half (54%) say they received information during open enrollment.
- Only one-third of employers say they communicate about their benefits plans before hiring an employee.
“Regularly providing education and information about retirement benefits can enhance retention and recruitment strategies, build stronger employee-employer relationships and boost employees’ retirement preparedness,” said Raymond J. Bellucci, Head of Recordkeeping Solutions at TIAA.
Communication disconnect
Employers increasingly see benefits as a valuable asset for attracting and retaining employees and feel a high degree of responsibility for their employees’ retirement preparedness (54%) and financial wellness (46%).
However, this commitment does not always translate to employees. Most employees surveyed recognized their employers’ increased focus on health and safety (64%) as a result of the pandemic, but just one-third noted a heightened focus on their financial wellness. A majority (68%) of employees also say they would like their employer’s help developing a retirement strategy. This number increases among employees ages 30-39 with 78% reporting they would like guidance on how much to save each year for retirement.
“We know that retirement benefits can be a significant difference-maker for employees when they’re considering career choices, yet employers are missing critical opportunities to communicate about them,” noted TIAA’s Bellucci.