Mercer Survey Finds US Workers Satisfied with Retirement & Health Benefits, but Fears of Future Affordability Rise Dramatically
November 05 2015 - 9:15AM
Business Wire
Younger workers driving demand for greater benefit
flexibility, challenging employer value propositions
Two-thirds of US workers (66%) report satisfaction with current
health coverage available to them, yet concern about the future
affordability of those benefits is rising dramatically. Only 41%
see health care as affordable five years from now vs. 62% today
according to Mercer’s latest data from the Inside Employees’ Minds™
Survey, conducted among more than
3,000 US workers representing a cross-section of the overall
national workforce.
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The new survey from Mercer, a global consulting leader in
advancing health, wealth and careers, and a wholly owned subsidiary
of Marsh & McLennan Companies (NYSE: MMC), also shows strong
satisfaction with retirement benefits (60%) – which ranks second to
pay in importance to employees. But notable is employees’ rising
concern about the cost of health care in retirement; 32% today — up
from 24% five years ago — say saving for health care expenses in
retirement is a top priority.
“Employees of all types continue to value benefits, with 9 in 10
saying they are just as important as getting paid,” said Gillian
Printon, senior partner in Mercer’s Health & Benefits business.
“This is remarkable despite a marked shift toward greater cost
sharing with employees and a perception that benefits are less
robust today than in the past. Combined with younger generations
seeking more flexible offerings, this study suggests we have an
increasingly benefit-savvy working population that is accepting
shared accountability but with grave concerns over affordability in
just a few short years.”
While base pay is the most highly valued reward element by
workers of all ages (see Figure 1), only 55% say they are satisfied
with it — a figure that remains steady from prior years. Also
remaining steady are low marks on pay for performance measures
including a sense of meritocracy (see Figure 2). Bonus/incentive
pay ranks fourth in importance overall, but it is only deemed as
satisfactory to 42% of workers.
Younger workers value flexibility, advancement
Workers ages 34 and younger are demanding more flexibility in
the benefits delivered by employers, with 70% of that group saying
they would like to reduce the value of some benefits while
increasing the value of others (see Figure 3.) They also rank
retirement benefits ahead of low health care costs, but place
career opportunities as second in importance behind base pay,
compared to eighth in importance for the overall workforce. Younger
workers also are more satisfied (53%) with their career
opportunities compared to the overall workforce (45%).
“The multi-generational workforce of today is forcing employers
to carefully assess the health, wealth and career elements that
make up their overall rewards strategy,” said Ilene Siscovick,
partner in Mercer’s Talent business. “With 63% of all employees
saying benefits are a major factor in choosing to work where they
do, employers need to rethink and reshape their value propositions
in a way that reflects the evolving workforce composition.”
To learn more about Mercer’s Inside Employees’ Minds research,
please click here.
About Mercer
Mercer is a global consulting leader in talent, health,
retirement and investments. Mercer helps clients around the world
advance the health, wealth and careers of their most vital asset –
their people. Mercer’s more than 20,000 employees are based in 43
countries and the firm operates in over 140 countries. Mercer is a
wholly owned subsidiary of Marsh & McLennan Companies
(NYSE:MMC), a global professional services firm offering clients
advice and solutions in the areas of risk, strategy and people.
With 57,000 employees worldwide and annual revenue exceeding $13
billion, Marsh & McLennan Companies is also the parent company
of Marsh, a leader in insurance broking and risk management; Guy
Carpenter, a leader in providing risk and reinsurance intermediary
services; and Oliver Wyman, a leader in management consulting. For
more information, visit www.mercer.com. Follow Mercer on Twitter
@Mercer.
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MercerBruce Lee, +1
212-345-0553bruce.lee@mercer.comFollow Mercer on Twitter
@Mercer
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