Health Insurance, Retirement Savings Plan and Paid Time-Off Listed as Top Benefits for Healthcare Employees

TIAA Institute report finds one in five full-time healthcare employees at risk for turnover within the next two years: holistic Employee Value Proposition may slow trend

NEW YORK, May 21, 2024 /PRNewswire/ -- Health insurance, paid time-off and access to a retirement savings plan top the list of benefits valued most highly among healthcare employees, with no other benefit coming close. That is according to a new report released today by the TIAA Institute that looked at registered nurses, physicians and surgeons, other medical and non-medical professionals and office and administrative staff in hospitals and healthcare systems.

The report, Toward an Employee Value Proposition (EVP) in the Healthcare Sector identifies the benefits and features that are most important to healthcare employees when seeking new employment or deciding to remain with their current employer. An EVP is a mix of rewards and benefits that make working for an organization particularly attractive that should also respond to the needs and expectations of the organization's workforce.

The report is released during a critical time as hospitals and healthcare systems continue to struggle with recruitment and retention in the post-pandemic environment. According to the report, 21% of full-time employees are at risk of turnover within the next two years, including 25% of registered nurses and 24% of physicians and surgeons.

"The key to attracting and retaining top talent lies within the tangible and intangible rewards of working for an employer," said Surya Kolluri, Head of TIAA Institute. "Organizations should recognize key priorities and use the various life stages of their employees as a guide to create employee value propositions that are timely and relevant."

Researchers say, when asked to identify the three benefits most important to them, healthcare survey respondents most often cited health insurance (83%) paid time-off (83%) and a retirement savings plan (76%) among their top three. These top three were consistent across age groups. While a retirement savings plan ranks third among the most valued benefits, survey responses show having access to a retirement savings plan is important to both older (89%) and younger employees (54%).

"Saving for retirement is a top priority for just over half of healthcare employees under age 40," said Colin Pierce, Head of Healthcare Practice, TIAA.  "As younger employees recognize the value of saving early for retirement, it is up to employers to offer access to plans, including lifetime income, to provide the financial security employees want. A well-crafted employee value proposition extends far beyond dollars and cents. EVPs are the biggest sales pitch employers can offer to attract and retain top employees."

In the survey, respondents were additionally asked to review a list of 11 job features and identify the three most important to them. While healthcare employees often cited salary as a most important job feature, 31% nonetheless did not rate it in their top three. Benefits and work-life balance were next in line, but still less than 50% rated them in their top three most important. Workplace flexibility and workplace culture were each cited by one-third as a top three most important job feature.

Sixty-three percent of those at risk of turnover rate staffing and resource shortages as a big problem at their current job. Stress and burnout (56%) and lack of appreciation (48%) are also big problems for them.

The report is the latest from the Institute around employee value propositions compared to workforce priorities.

About the TIAA Institute

The TIAA Institute is a think-tank within TIAA , conducting cutting-edge research in the areas of financial literacy and longevity literacy, lifetime income, retirement plan design and behavioral finance in the context of retirement. The Institute provides consulting services for higher education and the broader nonprofit sector. For more information, visit www.tiaainstitute.org.

About TIAA

TIAA is a leading provider of secure retirements and outcome-focused investment solutions to millions of people and thousands of institutions. It is the #1 not-for-profit retirement market provider¹, paid more than $5.6 billion in lifetime income to retired clients in 2022 and has $1.3 trillion in assets under management (as of 6/30/2023)².

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¹ As of July 21, 2022. Based on data in PLANSPONSOR's 403(b) 2022 DC Recordkeeping Survey, combined 457 and 403(b) data.
² As of June 30, 2023 assets under management across Nuveen Investments affiliates and TIAA investment management teams are $1,284 billion.
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SOURCE TIAA Institute