New Strategies Needed For Employees' Changing Priorities

Employees' Changing Priorities: New Strategies Needed

The impact of the COVID-driven recession and its aftermath has been more long-lasting on the job market and employment practices than initially anticipated. Despite a swift recovery, the labor market and employment practices haven't returned to pre-recession levels. Experts believe this is not just a temporary shift; economic and societal trends, accelerated by the pandemic, are reshaping the world of work.

The workforce is undergoing a significant transformation. Rather than striving for a work/life balance, employees are now seeking a life/work balance that considers their individual priorities. According to a recent study, while salary remains a crucial factor, 63% of employees prioritize something other than income when choosing an employer. Work/life balance and career advancement opportunities are considered just as important as wages, benefits, and retirement plans by more than half of today's workforce, regardless of employer size.

Moreover, employees feel that employers have a responsibility to enhance their well-being, covering financial, emotional, and physical aspects. Factors like non-traditional benefits, work/life balance, and flexibility play a significant role in employees' decision-making processes.

Understanding the Importance of Evolving Priorities

Traditionally, employers have focused on wages and core insurance and retirement benefits, sometimes overlooking the importance employees place on non-core benefits. While medical insurance and paid time off remain crucial, employees are urging employers to provide benefits that cater to their holistic needs. Additionally, employees prioritize non-traditional benefits over life, disability, and supplemental health products.

With five generations in the workforce, the desired set of benefits varies. Younger workers, in particular, exhibit different priorities. Economic uncertainty has shaped their mindset, with salary being less crucial compared to older generations. Younger workers emphasize learning opportunities focused on financial, physical, and emotional wellness.

Looking Ahead

The pandemic has fundamentally altered employees' needs and expectations regarding the benefits offered by employers. The boundaries between professional and personal lives have blurred, with the two becoming increasingly interconnected. Facing a projected "structural labor shortage" in the coming years, employers must adapt their benefits packages to meet the changing needs of a diverse workforce. A broader range of benefits that align with the financial, physical, emotional, and career aspirations of employees will be essential to address the realities of future workforce needs.

Employee Benefits have become indispensable in today's world. We can help you find what works for you and your employees today and in the future.