EBRI Research Shows Workers More Satisfied with Their Benefits

American workers are generally happy with the benefits they receive, and their concerns about financial well-being are edging down, according to a recent survey conducted by the Employee Benefit Research Institute (EBRI) and Greenwald Research.

EBRI’s sixth annual Workplace Wellness Survey found that 47% of the 1,401 polled full-time and part-time workers are either extremely or very satisfied with their benefits package. Respondents also reported less worry over financial well-being, placing it as a 6.3 on a 10-point scale (10 being the most concern), versus 6.9 in last year’s study.

Inflation and healthcare costs remain workers’ greatest concerns, contributing to an increase in worries about their overall well-being, according to the survey. Combined with positive perceptions of voluntary and financial well-being benefits, this suggests opportunities to expand the range of employer offerings.

“When benefits are coordinated, intuitive and clearly worth the tradeoff, employees don’t see them as extras,” said Andrew Stocker, the president of employee benefits at retirement, investment and insurance firm Voya Financial. “They see them as smart choices that give them more control, more confidence and more financial stability when it matters most.”

The Benefits Boost

Workforce satisfaction with benefits has risen from a low of 40% in EBRI’s 2003 survey but remains below the 51% recorded by its 2001 poll, said EBRI senior research associate Jake Spiegel.

Even greater numbers of workers (56%) report being very or extremely satisfied with their current jobs, according to the latest survey. While factors such as work-life balance and meaningful work drive these perceptions, Spiegel said there is a strong connection between satisfaction with benefits and many work-related outcomes, including job performance.

In addition, survey participants cited a wide range of areas for benefits improvement, including:

• Greater financial contributions from their employer (48%);
• Greater flexibility (34%);
• More resources around financial well-being (33%); and,
• Paid time off conversion (31%).

The fact that fewer than half suggested more money suggests “an unfortunate lack of a silver bullet,” Spiegel said.

Even so, benefits are a greater factor in active job searches than they were several years ago, said Laine Thomas Conway, the vice president of engagement services strategy and enablement leader at benefit services provider Alight. While health insurance and retirement savings were cited as top considerations by EBRI survey participants (72% and 62%, respectively), a broader range of offerings is becoming more enticing.

According to research conducted by Voya, 61% of employed Americans — and even greater proportions of younger workers and minorities — would accept a slightly lower salary in exchange for better access to voluntary benefits that “add predictability and limit total spending,” particularly for out-of-pocket healthcare and mental health expenses, Stocker shared.

“The EBRI survey highlights a clear opportunity for employers to focus on greater flexibility, more choice and stronger financial well-being support,” he said.

Meeting Employee Needs

Benefits supporting financial well-being are increasingly viewed “as table stakes” by many employees, said Siegel.

Nearly 9 in 10 EBRI survey respondents said their employers’ efforts to help manage financial well-being remained the same or improved over the past year; 23% said they had improved. More than one-third rated their employer highly in elevating their financial well-being. The findings suggest workers who participate in these programs through their employer are less likely to state higher wages as a driver of financial security.

Additional research from Voya found 63% of working Americans “strongly agree” or “agree” that their financial stability directly impacts their mental health, a significant increase from 57% just two years ago.

However, the EBRI research revealed a key “disconnect between employees and employers,” Siegel said. He noted employers believe costs and a lack of understanding of financial well-being benefits hinder adoption, while employees “are more likely to respond that their employer’s offerings don’t meet their needs.”

Thomas Conway pointed to Alight research suggesting a fully integrated approach to benefits leads to a 17% increase in overall well-being.

“Where employers differentiate themselves is their commitment to broader well-being packages and how integrated they are,” she said. “It’s what you’re offering and how you’re packaging it.”

Consider the following strategies:

• Offer a wide range of benefits. “Student loan repayments are not going to be relevant to everyone. Parental leave is not going to be relevant to everyone," Thomas Conway said. “But how you put all these things together is how you showcase your commitment to your employees.”
• Ensure employees understand what benefits are available. According to Stocker, employees consistently report lower awareness and understanding of their available benefits than employees believe they provide. “Closing this gap requires consistent, targeted communication that clearly connects benefits to employees’ financial and health outcomes,” he said.
• Leverage technology to help employees navigate benefits. “If you’re going to offer a cadre of benefits, people can be easily overwhelmed,” Thomas Conway noted. “People are looking for relevance and personalization. … Investing in some type of navigation to help manage their way through both core and ancillary benefits can be really important.”

Editor’s Note: Additional Content

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• Employee Benefits
• Well-Being