Over a third of employees would jump ship for better retirement benefits

Attracting and retaining employees has never been as important than in the current economic environment. High vacancies and the difficulty for employers to maintain their workforce is creating questions around how best to ensure a balance between employers’ and employees’ needs.

The good news, according to Principal’s Retirement Security Survey is that 76% of employees feel satisfied with their current jobs. However, nearly half (47%) would consider leaving for a higher salary and more than a third (36%) would consider leaving for better retirement benefits.

On the other side of that coin are employer struggles. Eighty-two percent of employers struggle with high salary expectations and 59% are concerned with a decrease in applicants for skilled positions.

Over the next 18 months, employers’ top strategic business priorities include hiring and retaining talent (69%), employee engagement, company culture and work flexibility (43%), and managing employee workload and burnout (39%).

Besides salary expectations, employees are feeling stress over financial wellness. Forty-seven percent said they didn’t have help developing good financial habits in their 20s, 41% worry they won’t have enough income to create a comfortable retirement, and 39% prioritize paying off student loan debt over saving for retirement.

The good news is that employers are positioned to assist. Sixty-six percent of employers say they currently offer some type of financial wellness program such as:

• Periodic financial wellness campaigns – 28%
• Ad-hoc financial wellness campaigns – 25%
• Holistic financial wellness programs – 13%

Employers should also be aware of workers’ top financial priorities in retirement:

• Maintain current standard of living – 70%
• Not outlive retirement savings – 47%
• Have the ability to splurge periodically – 44%

Workers’ concerns also include maintaining their physical and mental wellness, current lifestyle, and the possibility of losing savings due to market fluctuations.

It’s important for employers to look at concerns and consider their options. For instance, a more competitive total compensation package that balances salary with non-tangible benefits may help attract and retain employees considering leaving. A financial wellness education program may demonstrate employers are invested in the financial well-being of their employees, as well as help establish good financial habits among younger workers.

Finally, understanding workers’ outlook, priorities and struggles for retirement can help financial professionals and employers more effectively align solutions, education and resources to encourage participation and increase retirement readiness.