When the Great Resignation hit in 2021, 17% of organizations saw a turnover rate of 30% or more. Knowing this fact, when asked about the top operational priorities for 2022, organizations noted that retaining talent (52%) and attracting talent (40%) were among the top three priorities. Leaning into their ability to differentiate amongst the competition, 25% of organizations listed voluntary or supplemental benefits as one of the total rewards aspects they enhanced to meet their recruitment and retention objectives. Offering highly integrated voluntary benefits that align with core benefit strategies can be a strong competitive advantage in the marketplace.
Each year, we ask employers what their top objectives are for offering voluntary benefits. Year after year, the top objectives have remained the same. However, for the first time in 2022, "attracting new employees to the organization" debuted as an additional top objective.
Provides comprehensive benefits package |
73% |
Provides comprehensive benefits package
|
61% |
Fill gaps in coverage |
57% |
Fill gaps in coverage |
46% |
Offer financial protection to employees |
54% |
Offer financial protection to employees |
32% |
Not only can voluntary benefits help organizations meet the needs of their employees, but they can help attract and retain top talent. Thirty percent (30%) of employers identified that they were using voluntary benefits to also "retain existing employees."
Understanding that organizations need to be more competitive and integrated than ever before, 71% of employers plan to expand or replace their HR technologies by 2024. With such a significant financial investment — not only on the HR tech side, but also on the employee side (noting that 55% of employers are spending $10,000 or more per eligible employee on benefits annually) — it only makes sense to effectively communicate these new technologies. Unfortunately, many organizations don't take the opportunity to communicate total rewards. Moreover, only 54% of employers identified that "employees understand their benefits and how to use them" as the most important outcome for employee communication.