Life, career stage significantly influence what employees value in benefits package, study finds

The factors that drive employee happiness vary widely by life and career stage, and there often is a disconnect between what employees believe workers want and what they truly desire.

“One of the biggest challenges for employers is often overlooked — employees’ lives and values are dynamic, affecting their perception of employer support in health, success and financial wellness,” said Faviana Copeland, vice president of growth strategy at OneDigital.

The insurance brokerage, financial services and HR consulting firm released the findings of its 2024 Employee Value Perception Study. Based on responses from more than 2,000 U.S.-based employees, the study shows the value of such factors as direct management, meaningful work and advancement opportunities and how they vary among different employee populations.

Financial instability, particularly among executives, is a concerning trend. One-quarter of employees currently are contemplating borrowing from their retirement savings, a statistic that jumps to 37% among executives. Additionally, nearly half of all employees are anxious about potential accidents derailing their financial futures, a concern that spikes to around 65% among single individuals, particularly single parents.

Among the other findings:

• Financial insecurity persists despite responsible financial behaviors. Fifty-six percent of employees feel ill-equipped to handle major unexpected expenses. Despite widespread awareness of financial responsibility, only 63% of employees consistently save from their monthly paychecks, and 35% express a strong desire for financial guidance from their employer.
• Compensation drives job satisfaction. Participants from various life and career stages consistently rank “being well paid” as the most critical factor influencing their job satisfaction. This preference surpasses other factors such as “access to health care coverage” and “financial security benefits.” This shift in priorities marks a departure from the pandemic era, when health benefits were at the forefront.
• Flexibility and brand outrank benefits. The decision to leave or stay on a job is heavily influenced by an employer’s willingness to offer flexibility in work location and hours, and the company’s brand or reputation. Location and schedule flexibility is a particularly important value driver among employees with 6 to 12 years of experience, who consider it more important than health benefits.

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“Employers recognize the importance of investing in their workforce, but this study shows a gap between values and current support benchmarks,” Copeland said. “To truly understand employees, employers must amplify their voices to gain a holistic view of their feelings across key life factors and how they align with the employer’s rewards philosophy. With the latest insights, leaders can more effectively assess their workforce investments and develop a value-based benefits package that maximizes employee satisfaction and meets their unique needs.”