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Benefits 2.0

Gain a competitive advantage by optimizing workers’ benefits

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Build a market-leading benefits strategy
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Assessing impact at three levels
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Video insights for plan sponsors
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Industry-specific insights

The Benefits 2.0 research program from Economist Impact , sponsored by Nuveen, a TIAA company, breaks new ground by combining macroeconomic modeling, research into the perspectives and priorities of 1,500 U.S. workers, and in-depth consultations with business leaders and benefits providers. The research focuses on six major types of employer-provided benefits: retirement, insurance, time off, family support, education, and wellness.

Employer-provided benefits account for nearly a third of all compensation in the US.1 Despite this investment, the research shows that workers' expectations aren’t being met. Employers can optimize workers’ benefits, gain a competitive advantage and drive socioeconomic growth.

Build a market-leading benefits strategy

Learn about the three key findings for business leaders below

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View benefits as a driver of competitive advantage
Icon: light bulb
View benefits as a driver of competitive advantage
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Circle chart, 70%
Percentage of workers who would be willing to switch jobs for better benefits

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For instance, nearly half of workers say they would consider taking a new job for its education or wellness benefits

Seven in ten workers would be willing to switch jobs for better benefits

Weak benefits are deal breakers. Workers cite widespread concerns about the adequacy and quality of their benefits.

  • 50% of full-time workers are not confident they can afford the healthcare their family needs
  • 57% do not believe they will be able to retire on time

The cookie cutter approach is a mistake; benefits offer an opportunity to differentiate yourself from competitors. By getting creative and looking to fill real-world gaps faced by workers, organizations can capitalize on fresh opportunities to attract and retain top talent.

 

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Evolve plans to meet diverse worker needs
Icon: 3 people
Evolve plans to meet diverse worker needs
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Circle chart, 32%

Only 32% of these older workers have access to automatic retirement contributions from employers

Benefits priorities vary immensely across demographics and life stages; one-size-fits-all is no longer cutting it

Building a deeper understanding of varying priorities is the first step. Some approaches worth considering include persona mapping and customizable benefits plans.

  • 87% of older workers rank retirement among their top three benefits
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Benefits don't have to be baffling
Icon: benefits
Benefits don't have to be baffling
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Poor implementation discourages workers from using benefits

Illustration of people sitting around a meeting table

  • 80% say their company's culture does not encourage taking time off
  • 70% cite gaps in the usefulness of their education and training benefits

Two-thirds of workers say their organizations don't do enough to tout, explain or innovate, so benefits go unused

As a result, businesses leave money on the table by paying for benefits that go unused. Businesses make a significant investment in benefit plans, but optimizing those benefits requires more than checking a box. Strategic communication and creative implementation are crucial to maximizing a return on this investment.

Communication is lacking in both directions

  • 60% of workers say that their organization's communication about benefits needs improvement
  • 70% say opportunities to provide feedback could be better
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Assessing impact at three levels

With the right strategies in place, benefits can be a win-win for workers, employers and the wider economy.

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Learn what your workers have to say about benefits provisions by receiving our defined contribution insights straight to your inbox.

 

Contact us
Brendan McCarthy
Brendan McCarthy
Head of Retirement Investing, Nuveen
Craig Maalouf
Craig Maalouf
Managing Director, Nuveen Retirement Investing

1 https://www.bls.gov/news.release/pdf/ecec.pdf

Nuveen and Economist Impact, or any of their affiliates or subsidiaries are not affiliated with or in any way related to each other. The research was independently developed by Economist Impact and is sponsored by Nuveen, LLC.

 

This material is for informational and educational purposes only as of the date of production/writing and may change without notice at any time based on numerous factors, such as market, economic or other conditions, legal and regulatory developments, additional risks and uncertainties and may not come to pass. All information has been obtained from sources believed to be reliable. There is no representation or warranty (express or implied) as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information, and it should not be relied on as such.

 

Any guarantees are backed by the claims-paying ability of the issuing company.

 

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