A Benefits Problem – The Expectation Gap Between Employers and Employees

The competition for top talent is relentless in business. An organization's ability to attract and retain skilled employees often hinges on the benefits it provides.

A staggering 45% of workers who choose to leave their jobs do so because they feel dissatisfied with their employer's benefits package.¹ This disconnect between what employees expect and what employers offer is what we refer to as the "expectation gap," and it's making waves throughout workplaces worldwide. 

The demand for comprehensive financial wellness is clear as day to keep them engaged. Let's dive deeper into the expectation gap and explore various strategies to close this gap, ensuring happier, more loyal employees through financial literacy. 

Understanding the Expectation Gap

The expectation gap is a term that encompasses the disparities between what employees anticipate in terms of workplace benefits and what employers actually provide. It's a disconnect that can lead to dissatisfaction, lower morale, and ultimately, higher turnover rates.

To gain a comprehensive understanding of the expectation gap, it's crucial to identify its root causes. One key trend influencing employee benefits in recent years has been the increase in flexible work arrangements. 

Around 65% of employees now express a strong preference for full-time remote work, and 32% favor a hybrid schedule, which allows them to enjoy the best aspects of both in-office and remote work.²

Another prominent factor contributing to the expectation gap is the increased emphasis on financial wellness. Workplace benefits have undergone a notable transformation as employees become more informed and discerning. This shift not only helps alleviate financial stress but also broadens their horizons.

Nowadays, employees aren't merely seeking competitive salaries as they also aspire to receive a personalized financial wellness plan encompassing healthcare, retirement plans, and a variety of other perks.

Personalized financial wellness refers to tailoring financial education and support to individual employees' unique financial circumstances and goals. It involves recognizing that each person has distinct financial needs, whether it's managing debt, saving for retirement, buying a home, or budgeting for everyday expenses. 

Any misalignment between employee expectations and the benefits on offer can readily propel employees to explore alternative career opportunities elsewhere. To attract and retain top talent, employers need to adapt to changing workforce dynamics in order to address the expectation gap.

How to Close the Gap Between Employer and Employee Expectations

Closing the expectation gap is not a one-size-fits-all solution. This requires a strategic approach that caters to the diverse needs of the workforce. Here are additional ways to bridge this gap:

• Enhance Communication: Effective communication is key to narrowing the expectation gap. Employers should engage in open and transparent dialogue with employees about their needs and expectations. Regular surveys, focus groups, and feedback mechanisms can help gather insights and shape benefits packages accordingly.
• Invest in Professional Development: Many employees value opportunities for skill development and career growth as part of their benefits. Providing access to training programs, mentorship, and career advancement opportunities can help align employee expectations with organizational goals.
• Promote Work-Life Balance: While flexible work arrangements are crucial, promoting a healthy work-life balance through policies like unlimited paid time off, sabbaticals, and family support can bridge the expectation gap and improve overall job satisfaction.
• Offer Financial Wellness Programs: Financial wellness programs can be expanded to cater to different life stages and financial needs. These programs should focus on budgeting, debt management, and financial literacy for younger employees. For older employees, emphasize retirement planning and healthcare cost management.
• Health and Wellness Initiatives: In addition to mental health support, companies can invest in wellness programs that promote physical health, such as gym memberships, nutrition counseling, and wellness challenges.
• Tailored Benefits Packages: Consider offering a range of benefits options, allowing employees to select the ones that align with their needs and preferences.

The expectation gap between employers and employees regarding benefits is a significant challenge in today's corporate landscape. Retaining top talent requires a thoughtful and multifaceted approach that addresses these gaps effectively. 

How Employee Financial Wellness Programs Can Help

In the dynamic landscape of modern workplaces, the expectation gap between employers and employees when it comes to benefits is a challenge that cannot be overlooked. 

We have seen that employee retention plays a crucial role in a company's success. A workforce that feels valued and supported in their financial and personal well-being is more likely to stay committed to their organization.

To navigate this complex terrain and work toward closing the expectation gap, consider harnessing the power of the Enrich Employee Financial Wellness Program. 

Enrich is not just a financial education tool, it's a bridge connecting employee expectations with practical, actionable financial education and support. Request a demo today to see why Enrich is the ideal financial literacy solution for employers.

1 - https://www.pewresearch.org/short-reads/2022/03/09/majority-of-workers-who-quit-a-job-in-2021-cite-low-pay-no-opportunities-for-advancement-feeling-disrespected/

2 - https://www.northbaybusinessjournal.com/article/industrynews/how-to-build-a-remote-work-strategy-that-makes-sense-for-your-business/