Building a market-leading benefits strategy

Benefits 2.0 is a research initiative conducted by Economist Impact and sponsored by Nuveen, a TIAA company . This initiative delves into the impact of employer-provided benefits across three levels: workers, employers and the broader U.S. economy. The goal of the research is to assist employers in creating cutting-edge benefits strategies. The report presents findings and insights derived from a survey of 1,500 fulltime workers, an economic model, and a series of consultations with industry experts.

Within the research three key findings appeared:

1.????? View benefits as a driver of competitive advantage: Seven in ten full-time workers are willing to switch jobs for better benefits, underscoring the significance of benefit plans for building talent competitiveness. Rather than viewing benefits as a cost, organizations can seize a competitive advantage by treating them as a strategic investment. Attractive packages are a magnet for talent and a motivator for that talent to stay longer and commit to an organization. It will only become more important in the years to come, with 66% of Gen Z respondents considering taking a new job solely for the education or wellness benefits. Conversely, inadequate benefits weaken the appeal of a company and lead to higher attrition, which levies its own cost in terms of repeated onboarding, training and acculturation. Our research also finds that many workers feel their current benefits are failing to meet their fundamental needs in areas like healthcare and financial stability. Those who can, will move to better pastures; those who cannot, will be less engaged and productive.

2.??? Evolve plans to meet diverse worker needs: One-size-fits-all benefits are ineffective and inefficient, and too many workers are falling through the gaps. Priorities and needs vary significantly across demographic groups and different life stages—parents, young people and minorities often prioritize non-traditional benefits, for instance. From confidence about health and retirement to preferences about wellness and education, our research found substantial variations across age, gender, parental status, seniority, race and ethnicity. By understanding diverse needs, access challenges and actual usage, organizations can spot gaps and save costs on ineffective blanket policies. By tailoring benefits, organizations can demonstrate commitment to an inclusive culture and work environment. That starts with gathering better data about what workers truly desire through measures like persona-mapping, seminars, digital outreach and in-person discussions.

3.???? Benefits don't have to be baffling: Two-thirds of workers believe their organizations do not effectively promote benefits, explain them, or innovate how they are implemented, meaning their offerings go underused. Common complaints include unclear communication about available benefits, limited opportunities for worker feedback, and a perception that certain benefits lack relevance or usability. Eighty percent of workers say that their company’s culture does not encourage taking time off, for instance, even when paid leave is available. Organizations that take a thoughtful, proactive approach to worker benefits, focusing on addressing the real-world gaps and communicating effectively, can improve effectiveness and targeting to better serve their workers and themselves.

Watch our latest Nuveen in 90 where I discuss actionable insights for employers:

Thank you to following industry experts for sharing their time and insights: Mark Devine from Prudential ; Rosanna Durruthy from LinkedIn ; Paul Fronstin from Employee Benefit Research Institute ; William Gale from The Brookings Institution ; Maureen Kennedy-Harlan from 罗克韦尔自动化 ; Lisa Lynch from Brandeis University ; Caroline McGoldrick from Aon ; Jill Mongelluzzo, SHRM-SCP, GBA from National Grid ; Jeris Stueland from 麦肯锡 ; Jeff White from Boeing and Christopher Wimer from 美国哥伦比亚大学 . Nuveen is proud to sponsor this important Economist Impact research and provide employers insights aimed at bolstering competitiveness, fostering inclusion and improving communication and implementation. The full research findings can be accessed here .

Interested in learning more about Nuveen’s retirement solutions? Email us at [email protected] or call us at 888-842-5433. Explore our latest insights and subscribe to receive the research findings straight to your inbox .

Endnotes

The above content is an excerpt from the Benefits 2.0 study executive summary. The Benefits 2.0 research program, conducted by Economist Impact, sponsored by Nuveen.

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