Perhaps not surprisingly, the need for security and work-life balance is not as important as pay among Gen Zers just starting their careers. (Photo: Shutterstock)
A year-end bonus is always appreciated. But in today's world, the need for more security and greater work-life balance is causing an increasing number of workers to prefer richer benefits and more time off, according to Willis Towers Watson's Global Benefits Attitudes Survey.
The firm polled 8,000 U.S. workers and found that more than half of the respondents (57 percent) say their benefit package is more important to them than ever before. So much so that 37 percent would rather receive more substantial benefits than additional pay or bonuses, and 13 percent would rather receive time off.
Drilling down further, 42 percent of the respondents say they would be willing to pass up additional pay each month if it meant they could receive a more expansive health benefit plan. In the firm's 2013 survey, only 27 percent said this.
Moreover, a majority (67 percent) of respondents in this year's survey say they are willing to pay a higher amount each month for more comprehensive retirement benefits, up from 55 percent in the firm's 2011 survey.
"For the vast majority of employees, benefits indeed matter," says Steve Nyce, the firm's senior economist. "Employees of all ages want more security, and getting benefits through their employer is an important way to obtain it. They also want choice and personalization, and are looking to their employers to provide tools to ensure appropriate decision making."
The survey also found that the ability to choose between benefit options is good, but too many choices is just overwhelming — 64 percent of the respondents prefer a moderate number of benefit choices, while just 20 percent favor a large number of options.
"Employees want benefit packages that meet their specific needs but don't overwhelm them with too many options, says Jennifer DeMeo, the firm's senior director, retirement. "While this balance may be tricky, employers can help employees by offering education, communication and decision-support tools. This approach not only leads employees to make more informed benefit decisions but also boosts their financial well-being."
Other key survey findings include:
- Less than half (40 percent) of the respondents feel the resources their employer provides to support their health and well-being meet their needs, and just 32 percent say that about resources to help manage their finances. More respondents (70 percent) feel their health care benefits meet their needs, though for those who are in poor physical and mental health, only 56 percent say that.
- Perhaps not surprisingly, the need for security and work-life balance is not as important as pay among Gen Zers just starting their careers. Half (50 percent) of the respondents in that generation rank more pay as their highest priority, compared with 35 percent who rank more generous benefits as a top priority. Only 15 percent are more interested in additional time off.
- Nearly half of the respondents (46 percent) would be interested in purchasing home and automobile insurance if offered by their employer, followed by long-term care insurance (36 percent). Baby boomers are most interested in long-term care insurance compared with millennials (46 percent versus 28 percent), while millennials favor auto and home insurance (52 percent) more than do boomers (35 percent).
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Katie Kuehner-Hebert
Katie Kuehner-Hebert is a freelance writer based in Running Springs, Calif. She has more than three decades of journalism experience, with particular expertise in employee benefits and other human resource topics.
