While employers strive to address employees’ evolving needs, the results of a new survey find a disconnect between compensation and benefit offerings and employee preferences.
Franklin Templeton’s Voice of the American Workplace Survey, now in its fourth year, finds that employee expectations are on the rise, with 80% of employers struggling to meet demands for increased compensation. Notably, this finding comes as 91% of employers indicate that they experienced turnover rates exceeding 10% in 2023.
Aligning Offerings with Needs
The survey, which examined both employer and employee perspectives, reveals that employees prioritize increased pay (56%) and 401(k) matches (42%), while employers assume preferences for improved health and dental insurance, health savings accounts (HSAs), and charitable contributions. At the same time, 70% of American workers indicate their salary is not keeping up with inflation.
In addition, while nearly half (49%) of employer respondents are providing access to resources like financial wellness platforms, only 28% of employees are leveraging them, Franklin Templeton notes. What’s more, 72% of employees admit that they struggle to understand the benefits available to them, and nearly a third (29%) admit they struggle to understand the monetary value of employer-provided benefits.
Workers also expressed interest in more personalized offerings in their 401(k) and overall benefit packages—at 84% and 82%, respectively. Meanwhile, 90% of employee respondents report that they increasingly are seeking work-life balance to enhance their wellbeing.
“Managing heightened employee expectations is one of the biggest challenges facing employers today,” explained Jacque Reardon, Franklin Templeton’s head of Client Marketing for Retirement, Insurance, 529 and Wealth Management. “Understanding employee preferences and effectively communicating available resources is paramount for organizations aiming to attract and retain top talent.”
Financial Stress and Independence
The survey also sheds light on the financial stress experienced by American workers, with financial independence emerging as a major concern. According to the findings, workers express heightened anxiety regarding income, retirement savings, and healthcare costs, surpassing concerns about mental and physical health. In fact, the survey found a 15% year-over-year increase in concern over financial health.
Notably, nearly two-thirds (61%) of workers feel that their financial independence is jeopardized by the current economic environment, as they struggle to achieve important financial milestones. Other key concerns are recurring expenses (66%), healthcare costs (64%) and student loan debt (47%). What’s more, nearly half (47%) say their ability to retire feels in jeopardy due to the current economic situation.
“To address these challenges, employers must prioritize strategies focused on employee retention and satisfaction, which may entail offering competitive compensation packages and fostering positive work environments that prioritize employee wellbeing and work-life balance,” added Reardon. “By aligning with employee expectations and prioritizing their satisfaction, employers can mitigate turnover and cultivate a more engaged and productive workforce.”
The employer survey was conducted by The Harris Poll on behalf of Franklin Templeton from Nov. 6–17, 2023. All 1,000 respondents, based in the United States, are classified as employers, defined as having at least some influence over company benefits and/or hiring at organizations with over 100 employees.
The employee survey was also conducted by The Harris Poll from Nov. 9–21, 2023, among 2,001 employed U.S. adults. All respondents had some form of retirement savings.
