A new survey from Mercer, representing a cross-section of the national workforce, found that most workers are satisfied with their company’s benefits. However, many respondents, especially younger workers, said they are concerned about the affordability and flexibility of these benefits in the future, especially concerning health care and retirement.
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Get Your Report Now!Only 41% of respondents see health care as affordable 5 years from now versus the 62% who see them affordable today, according to latest data from Mercer’s Inside Employees’ Minds Survey. Also notable is that 32% of respondents indicated they were concerned about their ability to afford health care in their retirement, up from 24% in the previous survey.
A press release from Mercer, the global consulting firm, states that workers age 34 and younger are demanding more flexibility in the benefits delivered by their employers, with 70% of that group saying they would like to reduce the value of some benefits while increasing the value of others. For example, they ranked retirement benefits ahead of low healthcare costs on the survey.
“Employees of all types continue to value benefits, with nine in 10 saying they are just as important as getting paid,” said Gillian Printon, senior partner in Mercer’s Health & Benefits business.
“This is remarkable despite a marked shift toward greater cost sharing with employees and a perception that benefits are less robust today than in the past. Combined with younger generations seeking more flexible offerings, this study suggests we have an increasingly benefit-savvy working population that is accepting shared accountability, but with grave concerns over affordability in just a few short years.”
Ilene Siscovick, partner in Mercer’s Talent business, adds, “With 63% of all employees saying benefits are a major factor in choosing to work where they do, employers need to rethink and reshape their value propositions in a way that reflects the evolving workforce composition.
“The multigenerational workforce of today is forcing employers to carefully assess the health, wealth, and career elements that make up their overall rewards strategy.”
Survey results from the Mercer study may be downloaded here.
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