Employees prioritize better health benefits over higher salary, survey finds

Nearly 3 in 4 employed Americans would accept a job with a slightly lower salary if it offered better health care and medical coverage.

Nearly 3 in 4 employed Americans would accept a job with a slightly lower salary if it offered better health care and medical coverage, including lower premiums and out-of-pocket costs, a new Voya Financial survey found.

“The consistent trend of rising health care costs, coupled with the fact that these needs are anticipated to increase as one ages, is having a tangible effect on individuals,” said Nate Black, vice president, health solution products, for Voya. “Our research also revealed more than half of employed Americans strongly or somewhat agree they would take a lower salary for employer contributions to health savings and spending accounts (59%), and better access to voluntary benefit offerings such as critical illness, hospital indemnity, disability income and accident insurance (54%).”

Fifty-one percent of respondents said health care costs have a severe or major impact on their ability to save for retirement. The good news, however, is that many employers recognize this challenge and continue to provide their workforce with solutions that can support their health and wealth needs. What’s more, employees equally recognize the value of solutions through the workforce. More than half would be more likely to stay with their current employer if it provided access to health spending and savings accounts (51%), voluntary benefit offerings (51%) and mental health benefits and resources (54%).

“While it’s encouraging to see employees’ interest in these solutions as we approach open enrollment, now is the time for employers to help their workforce understand the true value these employer-offered resources can provide, which can make a difference in retirement readiness,” said Christin Kuretich, vice president, supplemental products, for Voya. “Many individuals may not realize that voluntary benefits, for example, can also help lessen the financial impact of a covered event such as an illness or accident and can potentially reduce the need to tap into a retirement account for any out-of-pocket medical or other expenses. With that in mind, these benefits can be tailored to meet individual needs.”

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Research also has shown that three-fourths of working Americans strongly or somewhat agree that they are interested in receiving support to maximize their workplace benefits dollars across their retirement savings, health savings accounts, health care insurance and voluntary benefits at work. Half of employees are more likely to stay with their current employer if offered access to digital tools and advice to help them make retirement plan and workplace-benefit-related decisions.

“Personalized digital guidance experiences, designed to help employees make more-informed decisions with a synchronized view of their whole financial life, are becoming increasingly important to be able to support the evolving needs of individuals and their households,” Kuretich said. “This is crucial not only during open enrollment but also year-round to educate employees on their benefits, ensuring they are fully equipped to leverage their workplace benefits and savings effectively.”