To keep employees from leaving amid the so-called “Great Resignation,” it helps to have great retirement benefits.
According to TIAA’s 2022 Employee Retention survey, a substantial majority (82%) of employees say their benefits — specifically their retirement benefits (77%) — are highly important in deciding whether they will change jobs. Meanwhile, for the more than 30% of employees who say they're considering a job switch this year, benefits programs are often a “crucial factor.”
“We know that retirement benefits can be a significant difference-maker for employees when they’re considering career choices, yet employers are missing critical opportunities to communicate about them,” Raymond J. Bellucci, head of record-keeping solutions at TIAA, said in a release.
“Regularly providing education and information about retirement benefits can enhance retention and recruitment strategies, build stronger employee-employer relationships and boost employees’ retirement preparedness,” Bellucci said.
Along those lines, the survey also reveals a majority (68%) of employees are seeking better information about their retirement savings plans from their employer, although this is likely due to increased job-shopping in the tight labor market. However, employees seeking to clarify their benefit plans also helps build trust in the organization, according to TIAA.
The survey also found that a mere 16% of employees say they received information about their current retirement plan before being hired, while less than half (42%) say their benefits were communicated when they first started their job.
Furthermore, the survey reveals many employers see their current offerings as a valuable asset for attracting and retaining employees and note that they feel a “high degree of responsibility” for their employees’ retirement preparedness (54%) and financial wellness (46%).
All that said, employees aren’t seeing their employers’ efforts to improve their finances, according to the TIAA study. Since the beginning of the pandemic, most employees have recognized their employers’ increased focus on health and safety (64%), but just one-third noted a heightened focus on their financial wellness.
“Offering a retirement plan with matching benefits is table stakes these days and crucial to attracting and retaining strong talent," said Andree Mohr, chief implementation officer at Integrated Partners. "Keeping people happy comes from the nontraditional benefits.”
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Survey findings from the Nationwide Retirement Institute offers pearls of planning wisdom from 60- to 65-year-olds, as well as insights into concerns.
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