3 Surprises from OneDigital's 2024 Employee Value Perception Study

Companies must keep a finger on the pulse of an increasingly diverse, multigenerational workforce whose needs are evolving in unexpected, surprising ways.

In early 2024, OneDigital conducted an Employee Value Perception Study (OneDigital Study) as part of an effort to understand the evolving benefit needs and perceptions of an increasingly diverse, multigeneration workforce.

Download OneDigital's 2024 Employee Value Perception Study here.

OneDigital researchers were surprised at some of the study findings including the high level of financial insecurity, the importance of wages on job satisfaction, and the demotion of health benefits when it comes to attracting and retaining employees.

We discuss these findings in greater detail below:

Rising Financial Insecurity

Employees are struggling with financial insecurity despite positive financial behaviors, according to the OneDigital Study.

According to the study, 25% of employees are considering taking out a loan from their retirement account, and more than 37% of respondents report feeling despondent because of debt. In the study, as many as 56% of respondents said they would not be able to handle a major unexpected financial expense.

This state of despondency and anxiety over financial wellbeing is surprising, given the high levels of awareness among employees about the need for a proactive approach when it comes to financial wellbeing.

A substantial majority (77%) of employees said it is important to save a portion of their earnings for retirement. Most employees (62.2%) said they monitor expenses carefully, and almost 63% said they saved money every month out of their paychecks. There was also a strong desire for financial education and empowerment, with nearly 35% of employees expressing a desire to talk to someone about their finances.

These findings suggest employees are struggling with their financial wellbeing despite prudent behaviors in saving, expense management, and awareness. Employers have an opportunity to move beyond a transactional arrangement to win over the hearts and minds of their employees by offering benefits that can meaningfully improve their employees' financial security and wellbeing. For example, employers can offer financial counseling, access to a financial advisor, and mental health support to help employees cope with financial anxiety.

The Key to Job Satisfaction: More Pay

Another important finding from the study was the high level of importance assigned to wages when it comes to job satisfaction.

In a trade-off analysis where respondents were asked to rank four factors impacting job satisfaction, employees from all life and career stages ranked “being well paid” as the most important factor, ahead of "access to healthcare coverage" and "financial security benefits." Respondents also ranked “feeling supported in taking time off” as the least important of the four factors impacting their satisfaction levels at work.

Employees are clearly placing more importance on wages compared to pandemic times when health benefits took center stage. Employers should take a research-based approach instead of adopting a cookie-cutter model or trying to imitate competitors' benefits plans. By using proven research-based techniques, like a trade-off analysis where respondents are forced to sacrifice the benefits of the options not chosen, employers can help employers accurately assess employee perceptions about their benefits.

Career Success Beats Health Benefits

OneDigital researchers were also surprised to learn that when it comes to choosing an employer, employees ranked the company’s brand or reputation, a key determinant of career success, over health benefits as the top value driver impacting their decisions.

The decision to leave or stay with an employer was also heavily influenced by an employer's willingness to offer flexibility in work location and work hours. Location/schedule flexibility was particularly important as a value driver among employees with 6 to 12 years of experience, who considered it to be more important than health benefits.

Employers seeking to optimize benefits investments, especially in the current environment of escalating costs and higher-for-longer interest rates, must take a strategic approach. This includes leveraging data-driven approaches to identify benefit areas that can deliver the highest return on investment when it comes to attracting, retaining, and engaging top talent, no matter what life stage they're in. Learn more: Personalizing Employee Benefits for a Multigenerational Workforce.

Ready to dig into the data-backed strategies for personalizing employee benefits? Check out OneDigital's 2024 Employee Value Perception Study now.

*The 2024 OneDigital Employee Value Perception Study surveyed more than 2,000 full-time U.S. employees between the ages of 26 years to 64 years at various career stages from entry-level with less than 3 years of experience to executives with more than 15 years of relevant experience. The study also examined employees' benefits value perceptions in the areas of health, success and financial security at five life stages: single parents, dual income households with children and without children, single employees under the age of 45 years, and single employees over the age of 45 years. The study is available upon request.