Nearly 90% of employees reporting high levels
of burnout also faced other mental health challenges over
the past year
COLUMBUS, Ga., Oct. 18,
2023 /PRNewswire/ -- Employers across various U.S.
industries and regions are struggling to meet their employees'
health care benefits needs — and employee satisfaction, wellbeing
and retention are at stake, according to the 13th annual Aflac
WorkForces Report released by Aflac Incorporated, a leading
provider of supplemental health insurance and products in the U.S.
The Aflac WorkForces Report tracks the state of the American
workplace among employees and employers, year over year, capturing
trends, attitudes, needs and experiences in health care and
benefits administration.
The slow burn of burnout
The nationally representative survey underscores employees'
concerns about mental health — especially burnout. Employees want
their employers to care about their overall wellbeing and provide
resources to stay ahead of burnout, but the study shows their
confidence is waning — causing some to consider other job
opportunities.
Consistent with 2022 survey findings, more than half (57%) of
all American workers say they are currently experiencing at least
moderate levels of burnout. The most significant culprit is
workplace stress — with heavy workloads as the biggest stressor —
and it's disproportionately affecting both women and younger
workers. Other survey findings include:
- Employees' confidence in how much their employers care about
them has declined significantly: 48% in 2023; 56% in 2022; 59% in
2021.
- The overwhelming majority (89%) of employees who report high
levels of burnout also have experienced other mental health
challenges over the past year, including anxiety, depression and
trouble sleeping, among others.
- 67% of Gen Z and 64% of millennials say they are facing
moderate to high levels of burnout.
- Women are vulnerable, too, with 75% reporting burnout at work
as opposed to 58% of men.
"Survey results on mental health and wellbeing in the workplace
are alarming and continue to be challenging, but employers can face
these challenges head-on and turn them into opportunities," said
Jeri Hawthorne, senior vice
president, chief human resources officer, Aflac Incorporated.
"Offering benefits that include mental health tools and resources,
in addition to work-life balance perks, such as flexible work
schedules, can help with employee satisfaction, retention and
recruitment."
A balancing act for employers
The steady rise in benefits costs and looming concerns of
increasing prices of everyday goods and services are causing
employers to cautiously navigate balancing their benefits budgets,
satisfying employees — and, more importantly than ever, retaining
them. The study uncovered that 53% are at least somewhat likely to
accept a position with lower pay but better benefits.
"The cost of benefits is creating a ripple effect for
employers," said Hawthorne. "They want to remain competitive by
offering benefits their employees are looking for while staying
budget conscious. They're also faced with retention pressure and
tough decisions to push expenses to employees, such as increasing
employee deductibles or employees' share of health insurance
premiums."
The great divide in benefits satisfaction and
understanding
The gaps are widening between employers' perceptions and
employees' lived experiences with benefits satisfaction and
understanding, according to the study. Key survey findings:
- 78% of employers believe their employees are highly satisfied
with their benefits, compared to only 59% of employees who express
high satisfaction.
- 79% of employers think employees understand benefits costs
well, while fewer than half (48%) of employees say they do.
"When employees do not fully understand the inner workings of
their policies and health care costs, it's difficult for them to
prepare for an unexpected medical event," said Hawthorne. "It's
important for employers to actively communicate about benefits
year-round — not just during open enrollment periods."
Financial fragility, smarter choices
Employees' stress and anxiety about their financial health are
caused not only by rising costs, but also by the potential of
unexpected medical expenses. This has led employees to spend less
and save more over the last year, according to the survey. More
employees have financial resources on hand to cover a medical
emergency, compared to last year; however, the state of financial
wellness among American workers — and their outlook on the economy
— remain fragile. Key survey findings:
- 51% of employees have savings on hand for a medical bill — up
from 45% in 2022 — but 50% can't afford more than $1,000 in out-of-pocket (OOP) medical
expenses.
- 54% of employees say they could survive a month without a
paycheck, down from 62% in 2022.
- 50% of employees think the economy is worse than it was a year
ago; 30% indicate that they are in a worse financial position than
they were a year ago.
Financial instability disproportionately impacts Hispanic
workers. Key survey findings:
- 66% of all Hispanic workers could not go more than a month
without a paycheck — compared to 51% of non-Hispanic workers.
- 57% of Hispanic workers could not afford $1,000 in unexpected OOP health care-related
costs, compared to 49% of non-Hispanic workers.
- When faced with an unexpected medical expense, Hispanic workers
also would be more likely to have to rely on family or friends (29%
vs. 24% of non-Hispanic workers) or seek a second job for
supplemental income (26% vs. 18% of non-Hispanic workers).
- Hispanic workers are less likely than their non-Hispanic
counterparts to be able to pull from a checking or savings account
to cover unexpected medical expenses (43% vs. 53%).
Meeting employees where they are in the digital space
Survey responses show employees' needs are not being met when it
comes to enrolling in and managing their benefits online. Most
employers recognize the importance of having a benefits provider
that offers a user-friendly, digital interface. A similar
proportion of employees value the convenience of managing their
benefits online. Key survey findings:
- 82% of employees overall — and 87% of millennials — think it's
important to enroll in and manage their benefits online.
- 82% of employees stress the importance of being able to manage
benefits online, yet 45% of employers do not offer the ability to
enroll in benefits online.
- 64% of organizations offer online benefits management, down
from 67% in 2022 and 79% in 2021.
- 8 in 10 employers indicate that it is very important for their
benefits provider to be innovative and lead in digital
technology.
- Nearly one-third of employees say they aren't comfortable
working with AI to manage their benefits, whereas fewer employers
(1 in 10) feel the same way.
"Employers have an opportunity to build benefits programs their
employees need and make it easy to navigate and manage their
options online. Leaning into benefits providers who excel in
digital technology can make a big difference and increase employee
satisfaction," said Hawthorne.
Supplemental insurance helps provide financial security and
boosts recruitment, retention
Supplemental benefits that directly address employees' anxieties
about the future can be a compelling solution. According to the
survey, more than half of all employees express a high degree of
interest in purchasing supplemental health insurance that helps
cover serious illnesses or conditions — if they have family
history. This interest is higher among younger generations than
baby boomers and significantly higher among Hispanic workers (62%),
compared to their non-Hispanic counterparts (50%).
According to the survey, the majority of employees (88%) with
supplemental insurance say those benefits provide an added layer of
financial security, yet only 39% of employers indicate that they
offer supplemental insurance options to their employees. Of
employers who offer supplemental insurance to their employees, 80%
believe these benefits help with recruitment, and 82% say they help
with retention.
The 2023-2024 Aflac WorkForces Report highlights the important
role benefits programs play in employees' wellbeing and
satisfaction. Supplemental insurance remains a core component of a
comprehensive benefits package to help attract and retain
employees. Employers will foster a more resilient workplace by
understanding their employees' needs and offering resources for
mental health and financial wellbeing while leveraging innovative
technology.
Additional survey findings, demographic information, workplace
trends and more can be found in the 2023-2024 Aflac WorkForces
Report at Aflac.com/AWR.
ABOUT THE 2023-2024 AFLAC WORKFORCES REPORT
The
2023-2024 Aflac WorkForces Report, conducted by Kantar on behalf of
Aflac, is the 13th annual study examining benefits trends,
attitudes and use of employee benefits in the U.S. workforce in
various industries and business sizes. The employer survey took
place online June 2-25, 2023, and the
employee survey took place online June 2-27,
2023. Throughout this report, some percentages may not add
up to 100% due to rounding of some responses. The surveys captured
responses from 1,201 employers and 2,000 employees across
the United States. For more
information, visit Aflac.com/AWR.
ABOUT AFLAC INCORPORATED
Aflac Incorporated (NYSE:
AFL), a Fortune 500 company, has helped provide financial
protection and peace of mind for more than 67 years to millions of
policyholders and customers through its subsidiaries in the U.S.
and Japan. In the U.S., Aflac is
the No. 1 provider of supplemental health insurance
products.1 In Japan,
Aflac Life Insurance Japan is the leading provider of cancer and
medical insurance policies in force. In 2021, the company became a
signatory of the Principles for Responsible Investment (PRI). In
2022, the company was included in the Dow Jones Sustainability
North America Index for the ninth year, the World's Most Ethical
Companies by Ethisphere for the 17th consecutive year, Fortune's
World's Most Admired Companies for the 22nd time and Bloomberg's
Gender-Equality Index for the fourth consecutive year. To find out
how to get help with expenses health insurance doesn't cover, get
to know us at aflac.com or aflac.com/espanol. Investors may
learn more about Aflac Incorporated and its commitment to corporate
social responsibility and sustainability at
investors.aflac.com under "Sustainability."
1 LIMRA 2021 US Supplemental Health Insurance
Total Market Report.
Media contact:
Jon Sullivan, 706.573.7610 or jsullivan@aflac.com
Analyst and investor contact:
David A. Young, 706.596.3264 or dyoung@aflac.com
View original content to download
multimedia:https://www.prnewswire.com/news-releases/workforce-retention-on-the-line-as-employers-battle-employee-burnout-301960539.html
SOURCE Aflac