PLANSPONSOR - May/June 2024 - 12

UPFRONT
Employers
Out of Sync
WITH increased turnover rates in 2023
and rising demands from employees for
higher pay and better benefits, employers
continue to face challenges in retaining
and recruiting top talent, says research
conducted by Franklin Templeton
Investments last November.
According to the firm's The Voice of
the American Employer Survey, 62% of
respondents-1,000 U.S. employers with
100 or more employees-said they had
conducted layoffs in the 10 months prior,
and 91% said they had experienced at least
a 10% increase in staff turnover.
Further, 79% of employers acknowledged
that their employees have expected
better compensation in recent years; 76%
said employees increasingly value worklife
balance, as well as career advancement.
The survey also found that the rising tide
of promotion requests is predominantly
churned by younger workers-86% of
employers reported that their younger
staff have been the most vocal about
wanting raises and/or promotions.
Around 82% of employers agreed
with the statement that " The workplaces
of today face insatiable employees that
continue to ask for more, " with 80% of
employers struggling to meet employees'
requests for greater compensation.
While most employers said they
recently upped the number of their benefits
or have improved their benefits' quality,
80% said they struggle with managing
the rising cost of providing benefits, and
68% said health insurance premiums for
employees grew in the past 12 months.
Employee Concerns
Employers are trying to offer the right
benefits to retain and attract talented
workers, while those workers are
concerned about managing their finances.
Franklin Templeton's The Voice of
the American Worker Survey, also fielded
last November, and receiving responses
from 2,001 employed U.S. adults, found
that most reported being concerned about
their income and maintaining a standard
of living, as well as saving for retirement
and affording medical expenses.
Recognition of the value of financial
health grew 15% year over year from
2022-the first time in these surveys it
outranked mental and physical health.
Many workers said they worry about
running out of money in retirement, and
55% said they plan on continuing to work
at least part time.
The National Institute on Retirement
Security found too, in its 2023 survey
on retirement insecurity, that 79% of
Americans acknowledged a retirement
crisis, up from 67% in 2020. Moreover,
73% of respondents said recent inflation
has raised their concerns about retirement.
For Franklin Templeton's worker
respondents, the most common reasons
they will postpone retiring were rising
medical and housing costs, global economic
uncertainty and their debt burden.
12 PLANSPONSOR.COM May - June 2024 Art by Brian Scagnelli
Communicating Benefits' Value
In general, employers are making strides
toward addressing employee needs by
bolstering benefits packages and adding
financial wellness benefits, yet these are
often out of sync with employees' needs.
For example,
if offered a choice of
enhanced benefits, employees said they
would like better pay and an increased
401(k) match. Employers assumed staff
would prefer improved health and dental
insurance and health savings accounts.
Seven in 10 workers also reported
experiencing challenges in understanding
their employer benefits. Specifically, 33%
said they get confused when changing
benefits and plans, and 29% said they
struggle to understand the " true monetary
value " they receive from certain benefits.
Thus, Franklin Templeton noted,
employers need to communicate clearly
about the resources they offer and focus
on articulating the holistic value of total
compensation and benefits packages.
-Remy Samuels
http://www.PLANSPONSOR.COM
PLANSPONSOR - May/June 2024

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