Franklin Templeton is the latest to capture the evolving needs of employees, including workplace benefits, in its “Voice of the American Worker Survey.”
The global investment management organization found that the majority of American workers (67%) are changing what they want from their employers due to the ongoing COVID-19 pandemic, with 44% saying that they have considered leaving–or have left–their jobs over the past year. The better news is that a solid 64% of respondents believe that shifts brought about by the pandemic have changed the employer-employee relationship for the better. But the same amount are looking for more out of their employment benefits than what their employer currently offers.
The survey, in its second year, was conducted by The Harris Poll on behalf of Franklin Templeton and its Retirement Innovation Initiative, the latter of which the company launched in January 2020 to rally industry experts to help improve the future of retirement in the U.S.
The study also found that 76% of workers say that financial independence is a primary priority, with 84% more focused on becoming financially independent than on traditional retirement. The focus on benefits remains strong with 87% of employees saying they would be willing to give their employer some form of personal information in exchange for more personalized benefits. And another 68% indicated that they would like their employer to recommend financial strategies based on their own income and financial goals.
“Personalization has empowered consumers and is becoming the market standard,” said Vince Morris, President, OneDigital Retirement + Wealth and RII member. “While employees consider the trade-off of providing more information in order to have a more personalized benefit experience, employers have an opportunity to educate, provide transparency, and build trust among their employees.”
Annuity options and 401k matching also emerged as top priorities for employees. Following an ongoing trend, more than 8 in 10 employees would be interested in a deferred annuity benefit but notably, only 2 percent of their employers offer such a benefit. Unsurprisingly, workers were most interested in increased pay and increased 401k matching. Demand for increased salary jumped more than 10 percent from the 2020 survey, surpassing 401k matching as the most-desired benefit among American workers.
Wellbeing is key aspect of employer-employee relationship
Workers felt almost equally about three areas pertinent to their overall wellbeing with the most emphasis put on mental (79%), physical (79%), and financial health (77%).
As employees seek ways to improve their overall well-being, they are hoping employers will step up. A little more than half are interested in benefits such as access to a financial professional (56%), financial planning tools (62%) and financial education (54%). And while they consider salary vs. benefits equally important when considering a new job, 84% of workers cite the importance of benefits that support financial wellbeing. Three-quarters of American workers also indicate it is now more important to work for a company that reflects personal values than this was to them a year ago.
“For employers across the country, there has never been a more urgent time to evaluate benefit offerings and consider ways to evolve how they are supporting employee needs,” said Yaqub Ahmed, Head of US Retirement, Insurance & 529 at Franklin Templeton. “With turnover at an all-time high, improving employee well-being is vital to the health of any business. Having a deep understanding of the current mindset of the American worker will help employers determine how best to meet their expectations.”
The full report can be found here.
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.
