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The complexity of the U.S. healthcare system is only one reason it’s more important than ever for workers and employers to have a proper handle on workplace benefits. In a rapidly changing labor market, coupled with shifting employee expectations, the right benefits package can be a big motivator for workers, and a draw for highly qualified job applicants. But a new report suggests that many employers may not be adequately explaining their companies’ benefits to their employees. It’s a wakeup call for business onwers to drag their communications into the 21 century and educate people versus the social media platform that are the source of most of their online information.
According to a new survey from New York-based financial services outfit Equitable, younger members of the workforce are turning to online sources and social media to help them properly understand the workplace benefits they’re offered. You might think “great! Job done…less effort for the HR team!” but the data shows otherwise: some 40 percent of the 1,000 people Equitable surveyed said they didn’t feel confident in understanding the voluntary benefits their employer offered. And while the data show 55 percent of all workers “still rely on HR materials and information sessions from employers to understand their workplace benefits,” 37 percent of Gen-Z have used social platforms like TikTok, Instagram, Reddit and even YouTube (that great source of “how to” videos) to seek out benefits information — the highest percentage of any generation responding to the survey. Meanwhile, Millennials lead the age groups who use AI for the same info: fully 30 percent say they’ve used AI like this.
What’s driving the trend of people trying to figure out benefits on their own? It may be mostly about medical costs in the complex, layered U.S. health system. Equitable’s data show 80 percent of Americans think an unplanned medical expense — like an accident, or a sudden serious illness — could “derail” their long term financial planning. Younger workers are more anxious, with 89 percent of Gen-Z and Millennial workers feeling this way, compared to 65 percent of baby boomers. This could be thanks to the macroeconomic financial disparities between generations, with report after report showing how the boomer generation has money set aside in ways that’re inaccessible to younger generations.
The amounts of money concerned aren’t that onerous, either: Equitable’s data show that over a quarter of the people who say an unexpected bill could upset their plans pin the financially damaging limit at around $1,000.
Why should you care about this?
Equitable’s report has a clear reason for you: it notes that a survey of over 500 small to medium-size businesses, nearly every respondent said voluntary workplace benefits are “key to attracting and retaining employees.” And nearly three in four small business owners think these benefits show that they’re caring and committed employers. Reputations like this, a recent report showed, are perhaps more important than they’ve ever been.
But the same survey said four in 10 employers said low participation was a barrier for them offering or expanding voluntary benefits. What may be driving this? Overly complex, old-fashioned pamphlets perhaps? Or a benefits education program that’s slightly out of date with current offerings from third party suppliers?
The big take-away is that younger workers really are looking for meaningful workplace benefits when they’re choosing which jobs to apply for — and emphasizing those that can benefit their mental health. As Gen-Z joins the workforce in increasing numbers, this is definitely something you need to plan for, lest you may miss out on excellent new talent.
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Kit Eaton
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