To attract and retain top talent, employers are enhancing flexibility, mental health benefits and personalized benefit options, yet balancing business demands remains a concern. There is a growing need for transparency and open communication, with employees expecting more support for their financial future and well-being. Tools like industry comparison reports and benefit checklists can be a helpful way to assess the impact of current offerings.
Setting the Stage
As we witness a shift from conflict to consensus, it’s a critical time to help employers capitalize on improved alignment with employee expectations—especially since 90% of employers view retirement planning as a collaborative effort with their employees.
We believe this information can be used to provide our industry with valuable insights on the shifts and solutions needed to evolve the concept of retirement and help us reimagine the support needed to deliver better financial outcomes for US workers.
81%
of employers report that their benefit budget will require significant updates in the next 12 months.
Voice of the American Employer
Challenges employers face today
This year’s survey examines both employer and employee perspectives, emphasizing the crucial need for aligning expectations with available resources.
Compensation expectations continue to lead this year, with employers expressing challenges meeting these demands. 76% of employers say: “My organization has been struggling to find adequate resources to address employees’ desire for increased compensation.”
Voice of the American Worker
Workers are navigating unique pressures
Employees are increasingly prioritizing mental health and feeling more optimistic about their financial security. They continue to look to their employers for support, with 91% expecting their benefit offerings to keep pace with modern challenges.
As employees seek more personalized and flexible benefits, employers should seize this opportunity to ensure that employees fully understand the benefits available to them. A review of current tools and communication strategies is essential to effectively articulate available employee resources.
Creating a Culture of Connection
Strategies for the modern workplace
A balanced effort between employers and employees is essential to effectively support financial security and company loyalty. Employees are increasingly seeking education on their financial benefits, and companies are responding by enhancing communication and providing more resources.
Employer
Employees
Say that work-life balance is top priority
VS.
Feel that finding work-life balance and protecting my mental health are top priorities
Are placing a greater emphasis on mental health benefits moving forward
VS.
Say mental health support has become an increasingly important benefit for me
Are adapting to be as flexible as possible to meet the diverse needs of today’s workforce
VS.
Say access to benefits that evolve with my needs would give them a sense of long-term security
Believe that even with unclear options elsewhere, employees are willing to leave if they aren’t happy
VS.
Say that the current job market has them holding tight to their position
Say allowing employees to select benefits that align with their individual needs and lifestyles is a top priority
VS.
Are asking their employer to offer personalized employee benefits
Aim to provide more financial resources for employees in the future
VS.
Feel employers should provide incentives for good financial habits
Employers and employees must collaborate to best understand and leverage the most impactful benefit offerings for each employee.
Pay, 401(k) match and health insurance continue to be critical for retention. Additionally, there is a growing emphasis on foundational benefits and employee engagement in understanding and maximizing these offerings. Direct feedback from employees on what resources would best help them understand what’s available will continue to improve the employer/employee relationship.
Key takeaways
Addressing talent retention, sustaining a competitive edge and managing benefit expansion within budgets are among the top challenges for employers today.
American workers are navigating a complex blend of financial pressures, mental health concerns and the desire for workplace adaptability.
A balanced effort between employers and employees is essential to effectively support financial security and company loyalty.
For additional information, please contact the Franklin Templeton Retirement Sales Department at (800) 530-2432.
The Voice of the American Employer Survey was conducted by The Harris Poll on behalf of Franklin Templeton from November 25 to December 6, 2024. All 1,002 respondents, based in the United States, are classified as employers, defined as having at least some influence over company benefits and/or hiring at organizations with over 100 employees. Respondents represent a mix of industries, company size, role, age, and race. Findings from 2023 reference a study of a similar nature that was conducted among 1,000 respondents of the same qualifications by The Harris Poll on behalf of Franklin Templeton from November 6 to 17, 2023.
This survey also references a qualitative study conducted by The Harris Poll on behalf of Franklin Templeton from August 15 to August 25, 2023, among 15 American employers. All interviewees were full-time employees working in human resources, who have influence over employee benefits, and included those with titles such as HR Manager, HR Director or HR Vice President, among others.
This was a blind study, as Franklin Templeton was not mentioned in order to avoid bias.
The Voice of the American Worker Survey was conducted by The Harris Poll on behalf of Franklin Templeton from November 27 to December 10, 2024, among 2,018 employed US adults. All respondents had some form of retirement savings. This online survey is not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated. Findings from 2020 reference a study of a similar nature that was conducted by The Harris Poll on behalf of Franklin Templeton from October 16 to 28, 2020, among 1,007 employed US adults, study from 2021 also references a similar survey conducted among 1,005 employed adults from October 28 to November 15, study from 2022 also references a similar survey conducted among 1,000 employed adults from October 17 to October 27, and a study from 2023 also references a similar survey conducted among 2,001 employed adults from November 9 to November 21.
Important Legal Information
All investments involve risks, including possible loss of principal.
Franklin Templeton is not affiliated with The Harris Poll, Harris Insights & Analytics, a Stagwell LLC Company.