Employers can gain a competitive advantage in recruiting and retaining talent by enhancing the delivery and focus of their employee benefits.
That is the conslusion of research released by Nuveen, the investment manager of TIAA.
Among other key findings were that employers need to provide a wider menu of benefits, such as family planning and care and assistance and tuition assistance, and satisfy and develop a more diverse, engaged and productive workforce.
The Nuveen survey report encourages employers to consider employee benefits as ways to increase return on investments instead of just cost-drivers.
"Benefits play an essential role in recruitment and retention so they should be seen as investments, not cost-drivers,” Brendan McCarthy, head of retirement investing at Nuveen, said in a press release. "The priorities of employees are as diverse as the workforce, making it vital to provide a range of options."
Employees also need to have a clear understanding of the benefits they have, he said.
"Benefits offered are only as powerful as the way they are understood by the employees, highlighting the importance of clear communication and education,” he said.
The survey of 1,500 full-time workers found that only 30% of those in mid- to large-sized companies say they're strongly satisified with their retirement plan. Also, 57% of workers say they aren't confident they'll be able to retire.
Some views of benefits broke along racial lines, as nearly 60% of Black, Hispanic and Asian workers said they were not confident they’ll be able to retire. That compared with 50% of white workers.
Generation Z workers, those born between 1997 and 2012, are “considerably less satisfied” with their retirement benefits than their older peers, according to the survey. They’re also much less confident about their retirement prospects.
Just half of workers are confident they can afford the healthcare their family needs. And more than 40% of parents say family planning and care benefits have allowed them or their partner to stay in their job, yet these benefits are the least commonly offered, according to the release.
Workers said retirement benefits were the most valuable of the benefits they receive.
Just 32% of workers strongly agreed that their company makes it easy for them to take full advantage of employer-provided benefits, and only 34% strongly agree their employer clearly communicates information about their retirement plan.
“There is clearly more work to be done in ensuring that employer benefits, especially retirement plans, effectively meet the needs of diverse employee populations, often with varying priorities,” McCarthy said.
“With a better calibrated, personalized benefit package, an employer can drive enhanced capacity, increased productivity and efficiency gains, resulting in a more satisfied, better motivated workforce,” he added.