4,505 workers told us how they’re doing — and how employers can help
US employers’ recent investments in pay, benefits, and flexibility have had an impact. Mercer’s major annual survey of workers, Inside Employees’ Minds, found employees feeling considerably more positive about work this year. At the same time, financial stressors, such as debt and the ability to retire, remain a top concern across all employee demographics. For many lower-earning employees, financial worries focus on simply making ends meet and being able to afford necessary healthcare.
Overall, the survey results suggested that employees are settling into a new way of working and living – one in which they prioritize their well-being amidst uncertainty, and where there is an increasingly stark divide between lower-income employees and the rest of the workforce in terms of the ability to thrive.
Satisfaction is up amidst total rewards investments
The study found the number of employees who are planning to stay with their employer has increased to 68%, compared to 64% last year – but it still remains below the 2021 level of 72%. Pay and benefits continue to be the top reason employees are attracted to an organization – and the top reason they stay.
Over the last year, employers delivered the largest pay increases since the 2008 financial crisis, while also making significant investments in total rewards, which has contributed to higher satisfaction with compensation, benefits, and career opportunities this year, as well as a greater sense of work-life balance and belonging. The study also found pay transparency has benefits – employees who believe they are paid fairly were twice as likely to have been provided with pay data from their employer – and were also 85% more engaged and 62% more committed to their organization.
Still struggling with financial security – and healthcare affordability
Employees are significantly more concerned about personal debt than they were in 2021, and it is the #2 concern of lower-income employees (defined as those making less than $60k per year). Additionally, more than half of employees across all pay levels report reducing their discretionary spending (51%), and another 37% report they have reduced savings or tapped into their current savings due to continued high inflation.
Long-term financial security, focused on the ability to retire, remains employees’ #2 concern overall, for two years in a row. Retirement benefits are among the top three reasons employees stay with their organization, behind only pay and healthcare benefits.
Working towards wellness
Outside of financial security, ‘workload and life balance’ is a leading concern for employees. Employees again ranked mental health among their top 5 concerns in this year’s survey. Mental health worries are more pronounced among young employees, LGBTQ+, Black women, people with disabilities, and the lowest earners.
Employees say more flexible and more balanced work will help support their mental health and ease burnout. The top three benefits or actions employees report will help them the most are more time off, reduced workload, and more resources.
A substantial portion of employees (38%) still prefer to work fully remotely, slightly less than last year’s 42%. Hybrid employees were found to be the most engaged and satisfied across a number of dimensions with those who worked on-site four days a week reporting the most positive experiences of any group. This group feels more energized, fulfilled, and appreciated, as well as less exhausted, frustrated, and under-utilized than any other work arrangement group.
Mixed feelings about AI
Overall, employees are more optimistic than pessimistic about new technologies. More than half (51%) of employees say that new technologies, such as automation, AI, and robotics will help them do their jobs more efficiently and effectively, while only 35% say these technologies will make their jobs more frustrating or difficult.
On average, employees are tied in their concern about new technology’s impact on job security: 41% of employees think their job security will be impacted, 41% don’t.
Employers can embrace this new reality
While employers may have slightly more bargaining power in this economy compared to last year, the job market is still tight, and employers should not become complacent. Employees today have shifting needs and expectations about work – and employers who acknowledge those needs and address critical gaps to support employees’ lives – both in and outside of work – will become an employer of choice for the long term.
About Mercer’s Inside Employees’ Minds
This study includes 4,505 full-time employees in the United States, working for organizations with more than 250 employees. The study was conducted during the second quarter of 2023. The report also includes actionable advice for employers to help address unmet needs in their workforce.