The U.S. labor market is at an inflection point. With most states, including Connecticut, returning to pre-pandemic levels of unemployment, recent layoffs in the technology sector point to an uncertain future as supply chains continue to be disrupted and global political turmoil persists. Yet, the labor market has defied recessionary fears, as an underlying demographic […]
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The U.S. labor market is at an inflection point.
With most states, including Connecticut, returning to pre-pandemic levels of unemployment, recent layoffs in the technology sector point to an uncertain future as supply chains continue to be disrupted and global political turmoil persists.
Yet, the labor market has defied recessionary fears, as an underlying demographic shortage of workers will continue to have companies struggling to find the talent they need to fuel their growth. At the end of October, Connecticut employers reported nearly 100,000 job openings, according to the Bureau of Economic Analysis.
Now more than ever, it is critical to understand what employees are thinking. Mercer’s 2022 “Inside Employees Minds” study outlines employees’ most pressing needs and how organizations can meet them.
This study includes feedback from more than 4,000 full-time employees across the U.S. The data shows that employees are more focused on securing their financial, physical and emotional health and well-being than on achievement and climbing the ladder — with work-life balance a top concern.
This year’s study marks a significant shift in workers’ needs over the year. Specifically, the ability to cover monthly expenses jumped to No. 1 in the ranking up from No. 9.
Inflation, financial security
Seven out of 10 employees say that high inflation and market volatility in 2022 has significantly increased their financial stress and led to reduced spending.
One-third of employees have tapped into savings to supplement spending needs. With financial markets and defined contribution plans taking a substantial hit, workers are increasingly more concerned about their ability to retire.
This is especially prevalent for lower-income employees who make less than $60,000, with just 25% confident about retirement.
Healthcare affordability
Inflation has also hit home for employers that offer healthcare benefits and their employees who have seen out-of-pocket costs surge.
According to Mercer’s 2022 “National Survey of Employer-Sponsored Health Plans,” U.S. employers expect health benefit costs per employee to rise 5.6% on average in 2023. The projected increase reflects changes that employers plan to make to hold down cost.
Low-wage workers are feeling the brunt, with 36% citing inability to pay co-pays, co-insurance and prescription drug costs. More than two-thirds of employees say they have challenges getting health care for themselves and their families.
Younger workers, caregivers and LGBTQ employees are even more likely to say they face challenges getting the health care they need.
Well-being at work
Employees who believe their employer cares about their well-being are less likely to leave their jobs. Yet, 81% of employees feel at risk of burnout, up from an already concerning 63% before the pandemic.
Concerns over mental health are most pronounced for younger workers, women, LGBTQ, Black, Hispanic and Latino workers.
Organizations need to take a more holistic approach to managing employee well-being, especially with a distributed workforce.
Historically, organizations only focused on access, treatment and coverage of mental health benefits. We see an increase in prevention, support away from work and more support at work as priorities for 2023.
Here are some actions employers can take:
Support workers on their financial journey.
January is Financial Wellness Month. Kick off the New Year by listening to employees’ attitudes about financial health.
Regularly engage them to determine the right degree of personalization needed to continue on the path to financial resilience.
Focus on steering employees to the right care.
Virtual health care, alternative and/or high-performance networks, centers of excellence, or targeted support for members with specific health conditions can all deliver high-value, cost-efficient care.
Ease the burden on employees’ mental and emotional health.
Expand well-being benefits. While much has been done, more is needed. Respect work-life boundaries. We are facing a mental health crisis and employers can provide support to help workers get access to the care and resources they need.
Companies that try to understand employees’ priorities and meet their changing needs will become an employer of choice in tomorrow’s job market.
Meg Galistinos is a partner and CT leader at consulting firm Mercer.
