A new study suggests that employers can do more to create wellbeing and benefits programs that foster a more inclusive culture and that meet the unique needs of their workforce.
According to Alight’s survey of more than 2,000 U.S. workers, 34% of full-time workers do not have retirement or health benefits from their employer and 61% of part-time workers lack these benefits. But when viewed by demographic groups, 48% of LQBTQ+, 47% of Hispanic, 42% of Asian American and 40% of black employees have neither health nor retirement benefits from their employers.
And many of those who are eligible either cannot afford benefits or face barriers to using them. In fact, many survey respondents identified a pressing need for near-term liquidity. “That’s true because short- and mid-term savings goals (e.g., emergency savings to continue to pay rent and feed the family, saving for home ownership and college education) often take priority over longer-term goals (e.g., retirement savings),” the study observes.
Of Alight’s respondents, people of color and of the LGBTQ+ community have the most savings goals. On average, these employees have between 3.3–4.0 savings goals per person, compared to 2.9 for white employees. Alight notes that these same employees can earn up to $16,000 less per year than their white co-workers, and as a result, many find themselves living paycheck to paycheck. Asian American employees are the one exception, earning an average of $7,400 more per year than their white counterparts.
Consequently, many workers do not take advantage of employer-provided automatic savings options because they don’t have the funds to allocate for savings. “These discrepancies create a seemingly endless cycle for employees struggling to make ends meet, unable to plan for the future, including saving for retirement,” Alight notes.
For employers, that’s an opportunity to improve their communications so employees clearly understand the value they are offering, the firm suggests. While the study emphasizes that the availability, accessibility and affordability of benefits vary dramatically across industries and based on the nature of the workforce at different types of companies, Alight suggests that its research confirms that most organizations should take steps to improve outcomes for all employees.
“In recent years, companies have increasingly made diversity, equity and inclusion a key priority,” says Alison Borland, Executive Vice President of Wellbeing Strategy and Solutions at Alight. “Employers have a tremendous opportunity to move the needle on creating a culture of belonging by providing greater access to benefits and wellbeing programs that speak to the needs of their employees.”
Actions for Employers
To provide benefit programs that are accessible and address the unique needs of employees, Alight recommends that employers focus on wellbeing-centric benefits strategies and engagement tactics to satisfy the full range of employees’ needs and drive better talent outcomes.
“Employers that offer more inclusive financial wellbeing benefits, provide useful resources and personalize communications will help all employees find a path to financial wellbeing, including those for whom traditional wealth-building strategies (e.g., retirement planning) may seem out-of-reach,” the firm suggests.
To that end, flexible benefit plans aligned with life-stage needs can yield significant value for both employees and employers, including financial gains and improvements in talent management outcomes, the study further observes. “A holistic approach to benefits that addresses employees’ individual needs across physical, mental and financial wellbeing allows employers to meet employees where they’re at and provide benefits to meet the wide variety of needs of their workers and their families,” it asserts.
The study also recommends that employers should leverage data and technology to deliver more engaging, relevant employee experiences. By accessing employee data on hand, companies can drive more personalized benefit experiences that can boost wellbeing and rebuild employee trust, Alight emphasizes. In addition, using integrated analytics to track how wellbeing program usage changes over time will help employers refine their offerings and engagement strategies for optimal results.
The findings are based on a survey conducted in November 2021 among 2,261 U.S. employees from employers with at least 5,000 employees, including both private and public organizations from a range of industries. In addition, Alight worked with Clarke and Blum Market Research, which conducted eight online focus groups in September and October 2021 among select groups of employees.
