Working Americans value their benefits—as well they should, according to a recent survey from the American Institute of CPAs (AICPA).
In a recent institute survey of more than 2,000 employees, U.S. workers actually overvalued their benefits and placed a higher premium on their workplace perks than their salary—meaning that advisors have an opportunity to demonstrate value by helping workers optimize those benefits.
Employed adults responding to the survey estimated that their benefits package represented approximately 40 percent of their total compensation—more than the 31.7 percent reported this year by the U.S. government’s Bureau of Labor Statistics.
By a four-to-one margin, 80 percent to 20 percent, respondents favored a hypothetical job with benefits over one with no benefits but 30 percent more salary.
The survey’s respondents felt confident that they understood their benefits packages, with large majorities reporting that they understood the benefits offered to them when they took their jobs. Large majorities also reported that they have kept up to date with changes in their benefits plans and that they know how to find information to keep up with their benefits.
Yet less than one-third of the respondents, 28 percent, felt like they were using their employee benefits to their greatest potential.
“Despite overestimating the value of their benefits as part of their total compensation, it is concerning that Americans are not taking full advantage of them,” said Greg Anton, chairman of the AICPA’s National CPA Financial Literacy Commission, in a statement. “Imagine how employees would react if they were not 100 percent confident they could get to all the money in their paycheck. Leaving benefits underutilized should be treated the same way. Americans need to take time to truly understand their benefits and make sure they’re not leaving any money on the table.”
Employees were also asked to rank which benefits were most helpful to them in reaching their financial goals, with the most popular options being a 401(k) match and health insurance, each named by 56 percent of the survey. Baby boomers were more likely than younger generations to place priority on an employer’s 401(k) match and health insurance.
Younger workers, on the other hand, were more likely to place priority on paid time off, flexible work hours and the ability to work remotely.
Among all generations, more than three-fifths of the respondents still felt confident that the freedom of running their own business and being their own boss would be worth more than the security that comes from working for an employer. One in five respondents planned to start their own businesses in 2019.