A workplace retirement plan is just as important for employee retention as a competitive salary and flexible work arrangementsA new survey from Voya Financial shows 76% of Americans intend to spend less on non-essential items in 2023 due to inflation.
Voya Financial, Inc. (NYSE: VOYA), is releasing new findings from a consumer research survey revealing that, while the broad scope of workplace benefits and savings offerings for employees continues to evolve, the employer-sponsored retirement plan remains a critical component to attracting and retaining talent.
Specifically, Voya’s research found that, among working Americans, 60% are more likely to stay with their current employer if they offer an employer-sponsored retirement plan. Equally important to working individuals were a competitive salary or compensation package (64%) and flexible work hours (63%).
“We know that the COVID-19 pandemic has forever changed the workplace benefits and savings landscape and, as a result, many employers continue to evolve their offerings to support their workforce, particularly as an opportunity to attract and retain talent in today’s competitive market,” said Heather Lavallee, CEO, Wealth Solutions, and president and CEO-elect, Voya Financial. “At the same time, amid new offerings such as flexible or hybrid work arrangements, employers need to remember the employer-sponsored retirement plan is a critical component to helping individuals prepare for a more secure financial future.”
Focus Remains On The Long Term
With many already thinking ahead to 2023, Voya’s survey also revealed that, due to inflation, more than three-quarters (76%) of individuals are extremely likely or likely to spend less on non-essential items next year, which generally could include things such as meals out, vacations or luxury goods. At the same time, they are maintaining a focus on the long-term benefits of saving, with nearly 7-in-10 (68%) of Americans saying they have plans to save for retirement next year. This focus on preparing for the long term becomes even more important as individuals continue to want to “stay the course” despite today’s market uncertainty. For example, Voya’s survey also revealed that a majority (81%) of Americans find having a long-term view for their investments important or extremely important, with 79% agreeing on the importance of staying the course during a volatile market.
“It’s extremely encouraging to see individuals keeping a focus on their long-term goals, despite the rollercoaster of financial extremes many have experienced over the past several years,” added Lavallee. “All employers should take note of the steadfastness that working Americans are expressing when it comes to the value of building their retirement savings through their workplace plan. This is particularly important as our survey also found that 75% of individuals plan to follow a financial plan and budget in 2023.”
Workplace Benefits Continue To Play A Valuable Role In The Lives Of Working Americans
While a retirement plan remains an important aspect of the overall workplace benefits and savings package, Voya’s survey reinforced the valuable role that workplace benefits are playing in the lives of working Americans, particularly when it comes to both their health and wealth needs.
More than half (52%) of employed individuals said they are more likely to stay with their current employer if they offer: physical health benefits/programs such as gym reimbursement/discounts, points/bonuses earned based on physical activity, weight loss challenges, etc., financial wellness benefits/program such as access to tools and resources for budgeting, building savings, reducing debt, etc., and a workplace emergency-savings plan (51%). In addition, nearly half (49%) are more likely to stay with their current employer if they offer access to voluntary benefit offerings like critical illness, hospital indemnity, disability income, accident insurance, etc., and 47% are more likely to stay with access to health spending and savings accounts (HSA, FSA, dependent care account).
“While we at Voya believe that having a focus on driving greater outcomes for retirement is vital to supporting today’s workforce, the financial uncertainty surrounding many individuals today also brings about a shift in mindset when it comes to the holistic wellness needs of employees,” added Rob Grubka, CEO, Health Solutions at Voya. “As many employers face an intensifying market attracting and retaining talent, the new year brings a great opportunity to evaluate your offerings to help stand out as an employer of choice. And for employees, simply knowing what’s available can only benefit you. So, it’s important to understand your options, particularly if that means being more curious at your own employer.”
“More and more employers today are being proactive with their offerings as they understand the short-term financial needs of their workforce can have a direct impact on their ability to save for the long term,” added Lavallee. “Programs that provide student loan debt support, caregiver needs, building emergency savings and access to financial professionals or advice tools are all things to ask about when it comes to support the breadth of financial planning needs individuals face today.”
Voya’s Mission For Secure Financial Futures
As an industry leader focused on the delivery of workplace benefits, savings and investment solutions to and through the workplace, Voya is committed to delivering on its mission to make a secure financial future possible for all Americans — one person, one family, one institution at a time.
All data based on the results of a Voya Financial survey conducted Oct. 10-11, 2022, on the Ipsos eNation omnibus online platform among 1,004 adults (461 employed) aged 18+ in the U.S..