Workers are seeking pay bumps; employers try to respond

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The fourth edition of Franklin Templeton’s “Voice of the American Workplace” survey found public and private organizations are boosting the pay and benefits they offer workers in an effort to recruit and retain talent.

But those employers also say they are struggling with the additional costs of those workplace improvements. And the survey found that employers and workers weren’t always on the same page when it came to which benefits would be most helpful.

The survey, conducted by Chicago-based The Harris Poll on behalf of Franklin Templeton, a global investment management firm headquartered in the Silicon Valley area of California, received responses from 1,000 U.S. employers with at least 1,000 workers. It found that 80% of those employers said they are struggling to meet the pay demands of their employees. And 82% said employees seek raises without understanding their companies’ business models and the implications of higher salaries.

Employers said to try to compete, they have boosted benefits packages, even if they are struggling to pay for them. About 70% of employers said they had recently increased the number of or quality of their benefits, and 65% described their benefits as “quite competitive.”

However, 68% of employers said they have had to increase insurance premiums in the last 12 months.

Franklin Templeton also surveyed 2,000 workers, who overwhelmingly reported feeling financial stress. About 70% said their salary is not keeping up with inflation.

“Their recommendation for employers: Prioritize compensation, including pay and a 401(k) match, and work-life balance for enhanced retention,” Franklin Templeton said in a summary.

The employer and worker surveys both asked respondents about how a company should spend an extra $1,000 per employee; the difference in the results was striking.

About 56% of employees said they strongly or somewhat agreed that the top priority should be salaries, compared with just 29% of employers. Meanwhile, 32% of employers somewhat agreed or strongly agreed that an improvement in the quality of health and dental insurance should be a priority, while just 16% of employees agreed. The survey found all of the workers’ top concerns were related to money. Respondents were allowed to choose three responses among a long list of concerns. About 42% picked income, 40% retirement savings and 36% health care costs.

“Each year, we’ve asked questions across three areas of health: financial health, mental health and physical health,” said Jacque Reardon, head of client marketing for the company’s retirement, insurance, 529 and wealth management areas. “Generally, importance and concern are even across all three areas, but for the first time this year we see that financial health far outweighs concerns in other areas.”•

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One thought on “Workers are seeking pay bumps; employers try to respond

  1. Its like employers will do anything but give the workers more money.

    I recently got a set of earbuds from my employer. They’re nice and all, but I’d rather just have the $60.

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