Group of Healthcare Professionals

New Voya Research Examines the State of Health Care Retirement Plans

How Benefits Professionals in the Health Care Industry Can Help Employees Be More Financially Well

Written by Mathew Greenwald, Greenwald Research

Voya Financial®, in collaboration with the American Society for Health Care Human Resources Administration (ASHHRA), recently conducted its biennial study of retirement plans in the health care sector about key issues impacting the structure and management of their defined contribution retirement plans. The research1 was administered by Greenwald Research on behalf of Voya. Here are some highlights and insights – and actions organizations can take.

The past two years have been exceptionally challenging for health care organizations, which has left many searching for ways to respond. The research explores how retirement plan decision-makers in these organizations have responded – and provides steps health care organizations can take to help meet the new challenges they confront.

Brodie Wood,2 national practice leader of Voya’s health care business, observed that when the pandemic first emerged, the problems created reduced the priority of the retirement plan for many health care organizations as they were besieged by many other issues.

“Now is the time to give retirement plans a higher priority, because these plans can contribute meaningfully to the challenges these organizations are facing,” Wood said.

Voya’s new research shows the increased priority health care organizations have given to retirement plans. Let’s touch on what further steps the health care sector can take with their retirement plan, and in other ways, to respond to the challenges COVID-19 has induced.

Three Key Challenges in the Wake of COVID-19

Over the past two years, health care organizations have been hit by three tidal waves:

  • The pandemic led to an overwhelming demand for health care services, stretching and stressing the capacity of many hospitals and other facilities.
  • Not only were staff stressed at work they were stressed outside of work by numerous factors including: the threat of COVID-19 to themselves and their families, the pressure of expanded childcare responsibilities as schools closed and children had to learn at home, and inflation stressing family budgets.
  • The twin staffing pressures of attracting new talent and retaining talent, as a variety of factors prompted early retirements and increased competition for labor. This problem was, perhaps, most significant with registered nurses, due in part to the increased tendency for nurses to become traveling nurses with a major increase in compensation.

These factors had several significant impacts. They led to an increase in mental health issues among staff as many faced higher stress both at work and at home. In addition, these factors increased labor costs and led to short staffs in crucial areas, putting a further burden on those still on the job.

To meet today’s challenges, it’s important for health care organizations to allocate the proper resources and make the necessary adaptations, including through the retirement plan.

Top Four Research Takeaways for Health Care Organizations

1. Health care employers need help maximizing the effectiveness of their retirement plan

Nearly nine in 10 (88%) retirement plan decision-makers feel their retirement plan helps attract and retain high quality employees. A key issue is how to maximize the effectiveness of the plan to accomplish these goals.

New employees tend to focus on the immediate value of a compensation package. There is sometimes less appreciation among early career job candidates in a retirement plan benefit that can provide a financially secure retirement in 30 or 40 years. So, the focus of early career job candidates is the employer matching contribution and the vesting schedule. Thus, in seeking to be competitive, employers should focus on plan design and have a compelling retirement plan match program.

Key steps to consider:

  • Adopt a stretch match: Some organizations may find it valuable to consider a “stretch match” which seeks to incent a higher employee salary deferral contribution level. For example, instead of matching 100% of the first 3% of salary contributed into the plan, revise the match to 50% of the first 6% of salary contributed.

The maximum percentage of salary matched remains the same – 3%. But participants must contribute more to obtain that 3% employer contribution. A stretch match is likely to be effective in motivating more saving.

  • Develop a total compensation statement: Some health care organizations have found it useful to have a total compensation statement that clearly communicates the total value of the employee benefit package, including the retirement plan, so employees can clearly see the entire value the organization is providing for them. Be sure to design a total compensation statement that communicates the full, overall value of benefits effectively.

2. Retirement plan design mechanisms are currently underutilized

Plan design mechanisms are underutilized and have the ability to help employers meet their retirement plan goals.

The survey found that decision-makers measure the success of their retirement plan through the financial wellness of their employees, participation rate and retirement readiness. There are two keys to achieving these important plan goals:

  • Comprehensive use of automatic defaults and
  • Educational efforts that effectively integrate in-person and virtual meetings.

Key steps to consider:

  • Include auto enrollment: We have learned that default programs can work very well. Automatic enrollment can be effective in gaining high participation rates and automatic escalation programs can be effective in increasing deferral rates. Yet the Voya research shows that many health care organizations are not using these mechanisms. There is fairly good use of auto-enrollment, but only a minority of firms are using auto-escalation which can also be a valuable tool.

Even fewer organizations are using automatic re-enrollment. There are different types of automatic re-enrollment. The simplest is to take the people who opted out of auto-enrollment in the prior year and automatically enroll them again the following year. These people can still opt out. But some who opted out the first time do not opt out the second time and this default option can be effective.

  • Educate employees virtually and in person: Effective education is vital. During the pandemic, many organizations learned how to communicate virtually – it is incumbent to continue to develop a hybrid in-person/virtual strategy to increase the ability to educate and motivate.

Virtual meetings can lead to a more informed and motivated participant base who will do a better job of saving and investing for retirement. The task is to integrate these meetings with an in-person program, which can lead to educational effectiveness that will exceed pre-pandemic levels.

3. Offer employees access to effective decision-making tools and assistance

Look to innovative new tools that are designed to help employees connect and use their benefits more effectively.

Employees face complex decisions about how to use all their employee benefits in a way they can afford, and which best meets their needs. For example, they must decide how much to put into their retirement plan, which health insurance option to choose, and how much to put into different voluntary coverages, such as life insurance and disability insurance.

These are complex decisions and many employees, especially younger employees, struggle with them and there is evidence that many make decisions that are sub-optimal. There is also evidence that many employees would value help from their employers in making decisions about employee benefits.

Key step to consider:

  • Offer an allocation decision-making tool: This type of tool is designed to help employees decide how to allocate an oftentimes limited budget among the options available to them in a way that best fits their circumstances and needs. The decision-makers we interviewed think this tool can be very valuable.

As one interviewee said, “Those kinds of tools will give them [the employees] a basis to develop some kind of plan as to how much to set aside for their retirement.” Our research indicates this tool can provide substantial help to those who work for health care organizations and employers should evaluate them.

4. Health care organizations should make their retirement plan provider a strategic partner

The Voya research shows that most retirement plan decision-makers lean on their plan providers a great deal. They want the plan provider to make sure the retirement plan is running well by:

  • Properly servicing the plan, including participant service requests
  • Helping educate plan participants
  • Making sure they are compliant and meeting the requirements of their plan documents
  • Effectively implementing the plan
  • Proactively communicating with the employer
  • Keeping them informed of regulatory changes
  • Ensuring all data is secure

Many of these decision-makers also want even more from their plan provider to help them make sure their plan:

  • Changes with the times,
  • Stays competitive and
  • Takes advantage of new developments.

Several decision-makers interviewed said they do not want their plan to be put on “auto-pilot.” They want to set their retirement plan on a strategic path to change with the times and become increasingly effective in meeting their organization’s objectives for the retirement plan.

There is clear recognition that a good plan provider is knowledgeable about new developments in the area and best practices. The plan provider can play a crucial role as a strategic partner to the plan sponsor, helping guide the retirement plan forward.

Key step to consider:

  • Schedule an annual strategic meeting: A key issue is how plan providers and retirement plan decision-makers can best work together to set the plan on an effective strategic path and make sure it adapts to new developments and needs. A couple of the retirement plan decision-makers interviewed commented they have strategic meetings once a year, sometimes off-site, in which they just have a brainstorming session with their plan provider.

The focus is on thinking creatively about the strategic plan for the defined contribution plan and how it can be achieved. This type of session is one pathway to maximizing the value a plan provider can bring to a health care organization.

Want to learn more about the evolving benefit needs of health care workers? Send an email to Brodie Wood to request a full report or to discuss findings. Or explore this overview of Voya’s health care study results.

 

 

 

1 The Voya survey understanding the challenges and priorities of plan sponsors in the health care market was administered by Greenwald Research. The survey consisted of two phases including: an online survey conducted Feb. 4, 2022-March 8, 2022, among 214 retirement plan decision-makers from health care organizations that offer a defined contribution retirement plan, along with seven 40-minute in-depth interviews with decision-makers across small, mid-size and large rural, regional, and nationwide health care organizations conducted March 2022.
2 Registered representative of Voya Financial Advisors, Inc. (member SIPC).

Results of New 2022 Retirement Confidence Survey Finds Americans Remain Optimistic About Living a Comfortable Retirement

However, a third of workers and half of retirees who feel less confident cite inflation and the cost of living as reasons for their declining retirement confidence.


Washington, D.C., April 28, 2022 – American workers and retirees remain optimistic about living a comfortable retirement, despite the impact of the pandemic that has lasted for over two years. However, inflation and the cost of living are cited most often as a reason for feeling less confident in their retirement prospects. Workers want to focus on their retirement savings but face many challenges, in particular, debt. Read more

New Research Reveals Job-Seekers in Search of Higher Pay, Work-Life Balance, and Emerging Benefits Amid the Great Resignation

Washington, DC, February 25, 2022 – Greenwald Research (Greenwald), a leading independent custom research and consulting partner to the health and wealth industries, released new industry research from The Role of Work-Life Balance & Benefits in The Great Resignation Survey. The research shares the attitudes and motivations that are influencing Workers’ decisions to leave the workforce or change their employment status.

Greenwald’s quick-hit survey on The Great Resignation, found that a third of Workers say they made a job change in 2021, and an even larger share — closer to 4 in 10 – plan to make a job change in 2022. The groups most likely to have made a change or plan to make a change are contractors/gig workers, younger Workers (under 50 years of age), Black Workers, and Hispanic Workers.

Powered by response:AI, The Role of Work-Life Balance & Benefits in The Great Resignation Survey was conducted in January 2022. It explored the reasons why American workers were making or considering job changes and the role that traditional and emerging benefits play in these decisions.

 

Current Climate

Over the past year, 30% say their overall job satisfaction has improved, while 25% say it has declined. In their current jobs, workers are most satisfied with the relationships with colleagues and managers. While most are still satisfied, many employee benefits, including mental health resources, disability insurance offerings, supplemental health insurance, are lower on the list. Also, though 55% of current workers are satisfied with their pay, 26% say they are dissatisfied. This represents the highest level of dissatisfaction among the job aspects surveyed.

 

Reasons for Making an Employment Change

Workers who changed their employment in 2021 or plan to in 2022 provide a variety of reasons for making the switch. Aside from pandemic-related reasons, workers most often say their changes are a result of not feeling valued as an employee, experiencing burnout, or looking for greater work-life balance, including more flexible working hours, a better company culture, or remote work opportunities.

Pay

53% of Workers who made a change in 2021 say dissatisfaction with pay was a reason (major or minor) as to why they made a change. Of those who changed jobs, 45% say their base pay is higher than their previous job. However, for those looking to make a change in 2022, two-thirds are planning to do so because they are unhappy with their pay. Since roughly a quarter of respondents either express that having enough money to pay the bills (25%) or to pay off debt (23%) is their biggest source of stress, pay is clearly extremely important to consumers.

Work-Life Balance and Remote Work

More than half of those who made a change in 2021 did so because they were feeling burnt-out (57%), wanted more flexible work hours (55%), or wanted to work remotely (52%). More than four in ten who made a change did so because they needed more time to provide childcare (45%) or needed to care for an adult family member (42%). Nearly six in ten who made or are expecting a job change say working for an employer that understands the needs of working parents is important.

Remote work is an important employment consideration for many workers. Of workers who worked remotely at some point during the pandemic, four in five would like the option to do so at least part-time moving forward (80%).

Company Culture

54% of those who made an employment change in 2021 and 46% of those planning to make a change in 2022 say the company culture was not a good fit for them. Two-thirds say that culture is important when considering an employment change.

The top reason Workers left their jobs in 2021 was that they did not feel valued as an employee (59%). Half left their job in 2021 to pursue more professional growth, and of those planning to leave their job in 2022, at least half do not feel valued at their job or want to make a change for professional growth.

Benefits

More than four in ten workers who changed employment in 2021 or plan to in 2022 cite being unhappy with their employee benefits or allotted PTO.

More than six in ten who made a change deem benefits other than health insurance important when considering an employment change. Such benefits include mental health and wellness benefits, health insurance, vision insurance, PTO, dental insurance, and retirement plans.

Significant portions, although less than half, consider health insurance, life insurance, disability insurance, and dependent coverage important when evaluating employment changes. In their new jobs, 44% of survey respondents are happier with the variety of benefit options, and 43% are happier with the amount of PTO available to them.

 

Effects of the Pandemic

The pandemic played a part in sparking the desire for change. A large share of workers decided to expedite their plans to make an employment change, either in 2021 or planned for 2022, as a result of the COVID-19 pandemic, especially those under 50 years old and those with full-time jobs.

Nearly six in ten cite the pandemic as a major or minor reason in causing them to feel like they needed an employment change. 53% say they were scared to contract COVID-19 at their jobs, and 48% were unhappy with their employer’s COVID-related policies.

For those planning on making a change in 2022, 61% say the pandemic inspired their need for change. Slightly fewer, however, are scared to contract COVID at work (47%) or are unhappy with their workplace COVID-19 policies (42%).

 

What Would Make Employees Stay with Their Current Employer?

Those who either left a job or retired generally say their employer could not have done anything to make them want to stay. The most common themes mentioned include respect, organizational structure, physical space, and the need for better pay. Among those who plan to make an employment change in 2022, opinions are more split. Some respondents say better pay could make them stay, while others say there is nothing that can be done.

 

Only one in ten (11%) think better benefits could entice them to stay.
“Many of the drivers of job change are within the control of employers, such as culture, work-life flexibility, and pay,” says Greg Hershberger, Managing Director of Health & Benefits at Greenwald. “We wanted to know if traditional or newer employee benefit or insurance offerings could make a difference. While traditional benefits remain important in these decisions, it doesn’t appear the main challenges to retention can be solved by more insurance offerings at work.”

When asked about what emerging benefits are most motivating to employees, roughly seven in ten cite more flexible work schedules, a signing or retention bonus, the ability to retire gradually, unlimited PTO, or remote work as being at least somewhat impactful in a decision to stay with a current employer or move to a new one.

With the changing professional landscape sparked by the pandemic, employers now have a unique opportunity to take a fresh look at their compensation, benefits, and work-life balance structures to build an even more attractive environment for job-seeking Workers or to increase their current workforce’s satisfaction.

 

About the Research

Greenwald’s The Role of Work-Life Balance & Benefits in The Great Resignation Survey, powered by the response:AI platform, is an online survey exploring Workers’ motivations behind recent workforce changes and the role of benefits and work-life balance on those decisions. The survey was conducted from January 7 to January 18, 2022. Consumers were required to be ages 25 to 74 and must have been currently working or made employment changes in 2021 or planned to do so in 2022. The survey included 1,206 respondents.

The full results of The Role of Work-Life Balance & Benefits in The Great Resignation Survey are available for purchase. Contact Greenwald Research to learn more.

 

About Greenwald Research

Greenwald Research is a leading independent custom research and consulting partner to the health and wealth industries that applies creative quantitative and qualitative methods to produce knowledge that helps companies stay competitive and navigate industry change. Visit greenwaldresearch.com to learn more.

Contact:
Greg Hershberger
Managing Director, Health & Benefits
Greenwald Research
Greghershberger@greenwaldresearch.com
(202) 686-0300

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REPORT: Greenwald Research Conducts Analysis of Two Surveys on Reg BI

The North American Securities Administrators Association (NASAA) conducted two surveys of broker dealers and investment advisers to seek to measure the impact of Reg BI on these firms.

Greenwald Research was engaged to conduct an analysis of the effectiveness of the survey processes and questionnaires to achieve that objective.

Read the report here:

 

 

coworkers looking over documents

Plan Participants Want Options that Generate Retirement Income in Their Workplace Retirement Plans

Many plan sponsors are open to these solutions; 8 in 10 say these options would improve participants’ retirement security

WASHINGTON – January 12, 2022 – A recent study conducted by Greenwald Research focused on in-plan retirement income solutions found that 85% of plan participants wish their employer’s retirement plan had an option designed to help generate a stream of income in retirement.

Greenwald’s first annual In-Plan Insights Program was conducted throughout 2021 to explore and evaluate the defined contribution (DC) plan retirement income landscape. The multi-phase program, including research with plan participants, plan sponsors, and plan advisors, covered a range of topics from SECURE Act impact to retirement income planning needs to reaction to in-plan income concepts. The 2021 Program was sponsored by American Century Investments, BlackRock, Fidelity Investments, Lincoln Financial Group, Nationwide, Pacific Life Insurance, Principal Financial Group, and Voya Financial.
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Survey Finds Interest in Telemedicine Surging, Growth in High-Deductible Health Plans Stalls After Reaching Record High Last Year

WASHINGTON – December 2, 2021 – The 17th annual “Consumer Engagement in Health Care Survey” (CEHCS), a survey of privately insured adults conducted by the Employee Benefit Research Institute and Greenwald Research, finds interest in telemedicine options doubled between 2017 and 2021. Satisfaction with telemedicine visits was high, with three-quarters stating they were satisfied or very satisfied.

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Black and Hispanic Workers With Highest Income Face More Debt, Work-Life Balance Challenges, Than Their Similarly Paid White Colleagues

WASHINGTON – November 18, 2021 – A new report based on the annual “Workplace Wellness Survey” (WWS), conducted by the Employee Benefit Research Institute and Greenwald Research finds that Black and Hispanic workers are more likely to be financially challenged by debt and less able to handle an emergency or sudden large expense than their White counterparts. Moreover, while evaluations of work-life balance improve with income, Black and Hispanic workers in households earning $75,000 per year or more are less content with the work-life balance at their organizations than their White counterparts and are less likely than White workers to give high ratings to their employers’ efforts to improve various aspects of their wellbeing.

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Stressed Employees Appreciate Employer Response to Improve Overall Wellbeing: Many Value Benefits More than Income Adjustments

WASHINGTON – October 7, 2021 – The 2021 Workplace Wellness Survey, conducted by the Employee Benefit Research Institute (EBRI) and independent research firm Greenwald Research, finds that 76% of employees favorably view their employers’ efforts to improve their overall well-being. Employees recognize these initiatives, as one in three employees acknowledge increased focus by their employers to improve emotional, physical, and financial wellbeing.

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Washington, DC, September 23, 2021 –  Greenwald Research (Greenwald), a leading independent custom research firm and consulting partner to the health and wealth industries, released new industry research from the 2021 Retiree Insights Program. The research program shares data on the COVID-19 pandemic’s impact on views towards investing, financial products, financial security, and preparation for retirement.

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New Industry Research Uncovers Three Different Types of Medicare Brokers

Washington, DC, August 12, 2021 – Greenwald Research (Greenwald), a leading independent custom research firm and consulting partner to the health and wealth industries, released new industry research, which provides a 360-degree view of how Medicare is marketed and distributed today, including brand strengths and weaknesses among both consumers and brokers, drivers of loyalty and satisfaction, and opportunities for growth.

In partnership with the American Association for Medicare Supplement Insurance, Greenwald surveyed 508 Medicare brokers, 1,023 healthcare consumers between 64 and 68 years old, and executives at 5 national field marketing organizations (FMOs) for the Medicare Marketing & Distribution Research Program. The research program also shares data on the differing approaches and motivations of Medicare brokers, areas of opportunity for Medicare products and brokerage services, and carrier selection and rankings, among other important topics.

The Medicare Market Today
Based on interviews with the FMO executives, a lack of clear succession planning for retiring brokers and advancement of technology in the industry have contributed to the consolidation of distribution and increases in the direct selling of Medicare products. With many brokers nearing retirement age themselves, there is an indication that this trend of consolidation is likely to continue.

While 46% of brokers believe that Medicare sales will eventually become completely virtual due to technological advancements, 91% of brokers believe that there will continue to be a role for them in Medicare sales and distribution. The challenge for Medicare brokers moving forward will be to determine how to evolve their roles to continue providing value to retiring consumers.

“Medicare brokers have varying needs based on the range of products they are selling, the audiences that they are focused on, and their growth trajectories,” said Edna Vasquez-Dretzka, study author and Managing Director, Healthcare at Greenwald Research. “This research provides clarity into who these brokers are and how you can tailor your support to meet their personal and professional needs.”

Medicare Broker Types
Results of the research program revealed that there are three distinct types of Medicare sellers: Medicare specialists, retirement specialists, and generalists. Their differing approaches and motivations for selling Medicare products indicate varying levels of interest in and preparedness for discussing other insurance and financial needs of retiring consumers. Each broker type also emphasized having different support needs from both carriers and FMOs.

Medicare Specialists
Medicare specialists represent 35% of brokers, or 179 of all study participants. These brokers are lifestyle brokers, with 46% reporting that they’re motivated to sell Medicare because of the flexible schedule. Medicare specialists are focused on individual Medicare sales, as 87% get more than 80% of business from individual sales. Their marketing needs include assistance setting up online presence, lead generation, and marketing support. From agency partners, Medicare specialists are specifically looking for digital tools and opportunities for continuing education and training.

Retirement Specialists
Retirement specialists represent 45% of brokers or 227 of all study participants. 48% of these brokers are motivated to sell Medicare because they were already selling other insurance products. In fact, these brokers sell the greatest number of products besides Medicare and 31% receive less than a quarter of their commission from Medicare sales. They sell 401Ks and annuities. Their marketing needs include better understanding of competition in the area, plan comparison tools, and cross-selling support. From agency partners, retirement specialists are specifically looking for flexibility in the commission structure and for them to have good carrier relationships.

Generalists
Generalists represent 20% of brokers or 102 of all study participants. Similar to retirement specialists, 43% of these generalists are motivated to sell Medicare because they were already selling other insurance products and they sell the second largest variety of products besides Medicare after retirement specialists. Of these brokers, 30% receive less than a quarter of their commission from Medicare sales. One of the largest differentiators between the two groups is that generalists do not sell any 401K or annuity products. Their greatest marketing needs include marketing support and access to better technology for virtual sales. From agency partners, generalists are specifically looking for high-level, agent servicing.

About the Medicare Marketing & Distribution Research Program
The 2021 Medicare Marketing & Distribution Research Program was conducted using online surveys and telephone interviews between March 1, 2021 and April 15, 2021. The program studied three primary audiences, including 1,023 health plan consumers aged 64-68, 508 health insurance brokers who sell group or individual Medicare, and 5 Medicare distributors. Neither the consumer nor the broker surveys were weighted.

Complete findings from the Medicare Marketing & Distribution Research Program are available for public purchase. To become a partner and gain early access to results in future studies, contact Greenwald.

About Greenwald Research
Greenwald Research is a leading independent custom research firm and consulting partner to the health and wealth industries that applies creative quantitative and qualitative methods to produce knowledge that helps companies stay competitive and navigate industry change. By leveraging deep subject matter expertise and a trusted consultative approach, Greenwald offers comprehensive services for weaving rich research stories that answer strategic business questions. Visit greenwaldresearch.com to learn more.

About American Association for Medicare Supplement Insurance
The American Association for Medicare Supplement Insurance (AAMSI) supports insurance professionals and organizes the national Medicare insurance industry conference. AAMSI also hosts the national online directory providing consumers with free access to find local Medicare insurance brokers and agents. Visit medicaresupp.org to learn more.