Missing the mark: Employees still dissatisfied with benefits cost, access
What's more, dissatisfaction at work is leading more than half of employees to consider leaving their current position.
Despite the renewed emphasis on meeting employee demands for more benefits and inclusion in the workplace, a new survey finds that many workers still don’t feel benefits packages really meet their needs.
The report by Alight, a business solutions company, surveyed more than 2,000 U.S. workers and found there are still barriers to benefits that employees struggle to overcome. In addition, many workers feel their employers do not recognize them as partners in the work that is being done.
Related: Prospective employees are looking for more accessible health care benefits
“Employees want to bring their most authentic selves to the job every day and be treated by their employers as individuals, with unique professional aspirations, personal goals, and family obligations,” the report said. “With these needs being inconsistently met, it’s not surprising that barely half of all workers (53%) expect to be with their current organizations 12 months from now.”
Access and affordability are still issues
The report noted that too many employees can’t access benefits, and cost is a major factor. More than one-third (37%) of workers in the survey did not have health benefits or receive retirement contributions from employers.
Overall, 42% of employees said they received health and retirement benefits, with 17% saying they received health benefits but not retirement benefits. In addition, the survey found that even when employers offered benefits, many workers did not sign up: only 45% of full-time employees said they accepted health and retirement contributions offered by their employer.
Cost remains a major issue: of employees providing a reason for not taking advantage of health benefits, 45% said it was because they could not afford it. This included 52% of full-time employees and 30% of part-time employees. An additional 34% overall said the health plan was not worth the cost.
Sometimes these findings confirmed existing trends that show inequity; for example, Black and Hispanic workers on average made less annually than White workers. But not all results were as predictable: for example, while 37% of Black respondents said health benefits were unaffordable, 48% percent of White respondents said the health benefits they were offered were unaffordable.
“To be clear, the availability, accessibility and affordability of benefits vary dramatically across industries and based on the nature of the workforce at different types of companies,” the report said. “But our research confirms that most organizations can — and should — take steps to improve outcomes for all employees.”
Possible solutions
Having outlined some of the issues that employees are struggling with, the report made a number of suggestions for employers. These included:
- Focus on a wellbeing-centric approach to benefits. The report suggested that a holistic approach to benefits that addresses employees’ individual needs across physical, mental, and financial wellbeing would allow employers to better meet the wide variety of needs of their workers and their families.
- Leverage data and technology to deliver more engaging, relevant employee experiences. Employee data can be used to create a more personalized benefit experience, and those programs can boost wellbeing and rebuild employee trust.
- Measure and monitor outcomes. The study found that the needs and priorities of workers can differ significantly by age, race, ethnicity, gender, and circumstance. Using integrated analytics to track how employees are using wellbeing programs over time can help employers refine their offerings and engagement strategies.
“Alight’s research also shows how the right benefits approach and employee experience can enable workers to access the flexible support they need and feel more recognized, and help employers find and keep the talent they need to run and grow their businesses and achieve their DE&I goals,” said Ali Cusic, VP, DE&I Solutions & Client Advisory at Alight.
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