A new survey finds that financial wellness benefits outrank in-office perks and vacation time on employees’ priority list. Betterment’s 401k business unit surveyed full-time U.S. employees to better understand their current financial situations, how they prioritize various types of financial wellness benefits, and what impact these benefits may have on talent acquisition and employee retention.
The resulting report, The Impact of The Great Resignation on Benefits Needs and Expectations, determined that a shift has occurred in workers’ priorities. Many are now seeking greater financial stability and support as the COVID-19 pandemic marches on, particularly as they face rising healthcare costs, increased student debt, and concerns tied to retirement and the future of Social Security. This matches similar views from employers, who are increasingly aware that financial wellness programs can bolster employee productivity, improve job satisfaction, and in a labor-strained environment, lower employee turnover.
Among the key findings, workers’ financial situations have yet to fully recover from the overall effects brought on by the pandemic:
- 54% are more stressed about their finances than they were before the pandemic, with Millennials and Gen Z feeling this the most.
- Following a trend that has emerged repeatedly in recent months, only 37% of women say that they are financially stable, compared to 61% of men.
- 43% have had to tap their emergency funds since the start of the pandemic, with the top reason being paying for medical expenses, home/car repairs, and rent or bills. Thirteen percent more men have emergency funds than women.
All of this points to increased desire for offerings that support financial wellness. And if/when, workers return to the office full time, 75% say they will still prioritize financial wellness benefits above in-office perks like snacks and ping-pong tables. Additionally, even though time off has long been a popular perk, 68% still say that they would prioritize financial wellness benefits above an extra week of vacation.
Retirement programs still score highest
The study notes that 401k plans and matching programs are the most highly sought-after financial benefits, but employees are also seeking benefits such as a wellness stipend and employer-sponsored emergency fund. They also seek student loan repayment programs, with 57% believing that employers should help employees with student loan debt—either through repayment programs or direct contributions. And they are serious about the importance with 85% of student loan borrowers saying they would be likely to leave their job for an employer that offered better financial benefits.
“The last couple of years have been financially challenging for workers and business owners alike. Faced with new realities and shifting work environments, it’s time that employers rethink traditional perks and consider what might provide greater value to their employees,” summarizes Kristen Carlisle, Betterment’s General Manager of 401k business.
Lynn Brackpool Giles is a contributing editor to 401(k) Specialist. Giles is a former Managing Director of Communications and Consumer Services for the Financial Planning Association (FPA), where she oversaw all corporate, legislative, and consumer communications. In her current journalistic practice, she is a frequent contributor to numerous financial services industry publications.
