What’s on employees’ minds this annual enrollment season?

Annual enrollment for workplace employee benefits is on the doorstep for many companies. 
Employers are in the midst of launching benefit decision tools if they haven’t already. And employees will make some critical decisions that can potentially affect their overall financial wellness — and perhaps whether they stay with their current employer, or not. 

So, what is the mindset of workers as this year’s annual enrollment period begins? 
According to a Voya survey conducted in August, about seven in 10 workers worry their employee benefits will cost more and expect to spend more time reviewing their benefit elections at their next open enrollment.¹ 

And the majority of employees are also looking to their employer for help: 75% of respondents are interested in receiving support to maximize their workplace benefits dollars across their retirement savings, health savings accounts (HSAs), health care insurance and available voluntary benefits at work.¹

Here are other key highlights from Voya’s latest research:

Inflation’s impact on retirement

The economy and inflation are top of mind for employees — and remain at the top in terms of impact to saving for retirement. Americans also report the upcoming Presidential/Congressional elections, current housing costs and credit card debt will also have a severe/major impact on their ability to prepare for retirement (up significantly since May 2024).¹ 

• Nine in 10 Americans feel that their money does not go as far as it used to.¹
• More than seven in 10 worry about the impact of inflation on their ability to save for retirement and to set aside money for unexpected expenses/emergencies.¹
• Millennials, Gen Z and Gen X are generally more concerned across the board with their ability to save for retirement based on a number of factors compared to baby boomers.¹
• People of Color* (a combined group of Black, Hispanic and Asian) are more likely to feel that mortgage/rent payments, credit card debt and caregiver responsibilities will have a severe/major impact on their ability to save for retirement compared to people who are white.¹

More stress around personal finances

Employees working full or part time specifically cite inflation as a source of stress. Inflation is also why they’re worried their workplace benefits will cost them more — and plan to spend more time reviewing their benefit elections in order to make the most of their benefit dollars:

• 75% of employed Americans say inflation has made them more stressed about their personal financial situation.¹
• 69% report they will spend more time reviewing their benefit elections because of inflation.¹
• Women are more likely than men to feel their money does not go as far as it used to, are stressed about their personal financial situation and are worried about their ability to save for emergencies because of inflation.¹

Less able to pay down debt

In addition, 66% of employed Americans say they are unable to pay down their debt as quickly as they want — due to inflation.¹ Younger generations (e.g., Gen Z, millennials, Gen X) are more likely to agree that inflation has increased their stress about personal finances, caused them to worry about their ability to save for the future (e.g., retirement, unexpected emergencies) and impacted their ability to pay down debt.¹

Likelihood to stay with current employers

Workplace benefits such as competitive salary/compensation packages, flexible work hours and employer-sponsored retirement savings plan (ESRP) matches are the most likely to influence an employee’s likelihood to stay with their current employer. Employees report other factors and/or workplace benefits that can also influence retention:

Impact on likelihood to stay with their current employer
(% more likely to stay, among employed Americans)

• 74% – Competitive salary/compensation packages¹
• 73% – Flexible work hours¹
• 64% – ESRP matches (e.g., 401(k), 403(b), 457)¹
• 59% – Ability to work remote or hybrid¹
• 57% – Ways to improve overall financial wellness¹
• 55% – Physical health benefits/programs¹
• 54% – Mental health benefits/programs¹
• 53% – Financial wellness benefits/programs¹

Younger generations, millennials and Gen Z, are generally more likely than older generations to stay with their current employer if offered student loan assistance, mental health benefits/resources, caregiver support and defined DEI practices.¹ In contrast, People of Color (a combined group of Black, Hispanic and Asian) are more likely to stay with their current employer if offered flexible work arrangements, have DEI practices, and offer caregiver/special needs planning resources and support.¹

Would take a job with slightly lower salary

Employed Americans are also willing to change jobs for a position that pays less if they can gain improved work/life balance, better health care and other benefits. For example:

• About seven in 10 workers are willing to take a slightly lower salary for better work/life balance, leave policies, health care/medical coverage, work flexibility and a higher ESRP match.¹
• Nearly six in 10 are willing to trade salary for employer HSA contributions, mental health resources and voluntary benefits (e.g., critical illness, disability, accident insurance).¹
• Men are more willing than women to take a slightly lower salary for better health care/medical coverage, a greater ESRP company match, employer HSA contributions, and better access to voluntary benefits and even better mental health benefits to some degree.¹

Conclusion

Given today’s multi-generational workforce, having a clear understanding of employee needs and wants helps employers optimize their benefits packages — which play an increasingly important role in recruiting and retaining talent. Based on a 2024 LIMRA survey, more than six in 10 employees say their benefits packages make them more inclined to stay with their current employers — with older workers in particularly likely to cite benefits as a reason for staying.³

Employers also have an opportunity to better educate their workforce year-round about their benefit options to aid employees’ understanding so they make optimal choices during annual enrollment. In fact, a 2023 Voya survey revealed:

• Two-thirds of Americans are open to receiving information from their employer outside of open enrollment to help them better understand their benefits (65%).⁴
• Those with a financial advisor, caregivers, those with children at home, and those with student loan debt tend to find receiving guidance on how to optimize retirement savings and workplace benefits, receiving messages from investment providers, and more information from their employer outside open enrollment to be significantly more important than others.⁴

Want to enhance your workplace benefits package? Contact your Voya representative today to learn more about our robust Workplace Solutions, including: Savings & Retirement, Group Employee Benefits and Health Account Solutions.