I remember first entering the workforce in 1981. I was a junior in high school working my first job in a pizzeria. Forget about benefits. I was making minimum wage and nothing more. Meanwhile, my father was working for a major corporation that offered health insurance, a retirement plan, and a few other perks. But benefits packages back then looked nothing like they do today.
Changes to how benefits are offered have employees rethinking their packages. But more importantly, they are rethinking benefits because of so many curveballs life has been throwing at them in recent years. Your average employee has an entirely different outlook on benefits as compared to employees of previous generations.
A Nice Perk Worth Having
Back when I first started working, employee benefits were not a given. Government workers got their pensions and other perks, and people fortunate enough to work at large corporations were also fortunate enough to have health insurance. But that was about it. The average joe on the street looked at benefits as a nice perk worth having.
Today, benefits are more than just a nice perk. Employees expect them. And in some industries, where benefits have been lacking, employees are now demanding them. What a change. It used to be that employers were considered generous for offering benefits. Today they are considered intolerable if they do not offer them.
More Than Health Insurance and a 401(k)
So, what do employees want these days? For starters, they want more than health insurance and a 401(k) plan. Do not misunderstand. Traditional benefits are still the foundation of most employee packages. But according to BenefitMall, a company that provides brokerage general agency services to thousands of brokers, modern life has employees wanting more.
A recent piece published by USA Today adds credence to BenefitMall’s assertion. According to the piece, survey data shows American consumers struggling under bad economic conditions. They are having trouble putting money aside. They are also having trouble making ends meet. As a result, many are looking for new benefits that will help them better manage their personal finances.
Here are some of the things they are asking for:
- Temporary Financing – Growing numbers of employees are looking for temporary financing via their retirement programs. For example, taking out a short-term loan against one’s 401(k) is no longer abnormal. It is unwise, but more people are doing it.
- Workplace Savings – Employees are discovering workplace savings programs that ‘force’ them to save a little bit each month by way of payroll deductions. This forced savings helps them do something they can’t seem to manage on their own.
- Debt Management – Another big one is help with debt management. Employees are asking for help in getting a handle on their credit cards. They are asking for help establishing and sticking to budgets.
- Financial Management Advice – Employees are also looking for benefits related to financial management. In other words, they don’t know how to manage their money but they want to learn. They want their employers to step up and help them do it.
I look at all of this and see it as a sign of the times. Bad economies tend to cause people to start thinking more about their personal finances. That is not necessarily a bad thing. However, what happens when the economy rebounds and people have more money to spend? What types of benefits will they expect then?
Employee benefits are always evolving. They are always changing. These days, however, employees are rethinking their benefits packages out of necessity. It is not a good position to be in.
