The economic impact from the pandemic is having a profound effect on how U.S. workers think about their jobs, financial goals and retirement. The recent Voice of the American Worker Survey from Franklin Templeton’s Retirement Innovation Initiative delved into not only what workers think but the implications for employers.
Americans are rethinking work. The combination of COVID-19 and social/political upheaval has made it more important than ever for employers to align with employees on all aspects of their lives, not just work.
- A sizeable majority (67 percent) have reassessed what they want from their employers because of COVID-19.
- Forty-four percent of U.S. workers have considered leaving or have left their jobs during the past year.
- When considering a new job opportunity, employees rate the importance of salary and benefits nearly equally, with 84 percent of respondents noting the importance of “benefits that help my financial well-being.”
- Sixty-four percent of employees also believe that the shifts brought about by the pandemic have changed the employer-employee relationship for the better.
- However, most employees (64 percent) also agree that their employers could be doing more in terms of providing up-to-date and valuable benefits.
Key takeaway: There has never been a more urgent time to evaluate benefit offerings and consider ways to support employee needs. Turnover is at an all-time high as many adapt a “grass-is-greener” mentality. Having a deep understanding of the current mindset of the American worker will help employers consider how best to meet their expectations.
Workers remain more focused on financial independence than on traditional retirement. Employees continue to redefine financial milestones with an eye on freedom and flexibility, with 84 percent stating that “I am more focused on becoming financially independent than on traditional retirement.”
Employees are divided on how much personal information they are willing to share:
- Fifty-five percent want employers to use all available information to provide personalized benefits.
- Forty-five percent want employers to collect as little information as possible for privacy purposes.
- Eighty-seven percent of employees would be willing to give their employer some form of personal information in exchange for more-personalized benefits.
Key takeaway: Personalization has empowered consumers and is becoming the market standard. As employees consider the trade-off of providing more information to have a more personalized benefit experience, employers have an opportunity to educate, provide transparency and build trust.
Workers continue to seek improved well-being and need support in addressing existing roadblocks. Workers value mental, physical and financial health nearly equally when considering their overall well-being.
- Despite trying to optimize across all three elements of well-being, workers still don’t feel that they have as much control over their financial health as they do in other areas.
- One key reason for this lack of control is debt. Eighty-three percent of U.S. workers carry at least one form of debt, with credit card debt (54 percent) the most common, followed by mortgage/home equity debt (40 percent) and utility, cellphone or auto loan debt (38 percent).
Key takeaway: Lack of employee well-being has an impact on job performance. Most workers feel their current level of financial stress affects their overall well-being; expect that stress to remain the same or increase; and agree this is an ongoing issue caused by factors other than the pandemic
A focus on well-being continues to include urgency in improving financial health, with key opportunities for employer support. As employees seek opportunities to improve well-being, most are interested in benefits such as access to a financial professional (56 percent), financial planning tools (62 percent) and financial education (54 percent).
- Nearly eight in 10 employees want rewards for good behavior.
- Most employees want more out of their benefits, with 64 percent saying, “I am looking for more out of my employment benefits than my employer currently offers.”
Key takeaway: Workers are looking to their employers for help. Employees are interested in financial management and education benefits, and a majority of workers favor benefits that can help them learn about financial management in addition to benefits that help manage their money directly.
