Mercer published an update to its “Inside Employees’ Minds” study which focuses on understanding the root causes of high turnover and how employees’ needs and wants have shifted over the past year since the term “Great Resignation” was coined in May 2021. Here are some excerpts from the report, and Mercer’s related press release.
Adam Pressman, Mercer’s US Employee Research Leader said, “[…] 2022 has brought new challenges – inflation, labor shortages, a war in Ukraine, and more.”
“It’s clear now more than ever that employees are prioritizing their well-being now. The top three reasons employees consider leaving their employer are pay and benefits, burnout due to workload, and insufficient healthcare benefits,” he added. “For some, especially front-line and low-income employees, that means financial survival. Others, who have their basic financial needs met, are placing increased importance on their lives outside of work.”
Employees are increasingly concerned about retirement and healthcare affordability.
Employees report that behind pay and workload, insufficient healthcare benefits are the next top reasons they would consider leaving their employer.
68% of employees report challenges with getting the care they need, with the top challenge being trouble affording the healthcare costs that aren’t covered by health insurance plans, such as deductibles and co-pays. Over 60% of employees purchase healthcare services outside of their insurance plan, with the top item being prescription drugs (31%).
Americans across demographics are experiencing significant financial stress
Above all, the research revealed that the financial concerns of employees reign supreme this year, despite US employers increasing base pay between 5% and 7% in 2022. Financial concerns remain high even for high-income earners — 71% of employees who make more than $200k per year say that high inflation and market volatility have increased their financial stress. Overall, nearly 2 out of 3 employees (62%) say they’ve reduced spending, and a third say they’ve reduced savings or tapped into savings to supplement their spending needs.
“In 2022, employees value a workplace that centers on well-being; where they have more sustainable workloads and more resources to support their holistic health – financial, physical, and mental. We see this as a defining moment – a new contract between employers and employees – the “Lifestyle Contract,” said Lauren Mason, Senior Principal in Mercer’s Career Business.
Checkout the Mercer report in its entirety here.