Work-Life Reimagined: How the Healthcare Industry Can Take on the Challenge

A report based onMetLife’s 17th Annual U.S. Employee Benefit Trends Study 2019

1

The healthcare industry is striving to keep pace with the market’s demand. Between 2016 and 2026, the industry is expected to need four million new jobs, a growth rate that’s three times faster than the rest of the economy.1 As a result, healthcare is poised to overtake the manufacturing and retail sectors as the nation’s largest employer in the years ahead.

However, the jobs boom comes with challenges for healthcare employers. Low unemployment rates, combined with skill gaps and continuing boomer retirements, amplify the war for talent, and in some regions, create more positions than available workers.

The American Association of Medical Colleges estimates a potential shortage of up to 100,000 physicians by 2030 due to increased demand, retirement rates, and decreased work hours.2 At the same time, the Bureau of Labor projects a need for 203,700 new Registered Nurses (RNs) annually to keep up with the demand.1

The employment crunch extends beyond doctors and nurses. Job growth projections also show significant spikes in non-clinical administrative and support roles, including receptionists, billing staff, and home health aides, which account for a sizeable portion of the healthcare workforce.

The healthcare industry is right in the middle of this major population shift. On one hand, as the U.S. population ages, healthcare needs will continue to grow.

Staffing shortages, exacerbated by impending boomer retirements, have a direct impact on employee burnout, in what’s already a high-stress field. Fifty-one percent of healthcare employers cite employee burnout as a major challenge, significantly more than 37 percent of employers overall.

In the rapidly changing healthcare environment, employers are taking on hiring, retention, and burnout challenges by rethinking employee experiences and seeking solutions to augment support for employees both inside and outside of work. Year over year, more healthcare employers see value in a holistic approach that helps employees successfully blend work and life. But there’s a disconnect between employer and employee perceptions, and this gap is increasing.

Healthcare employers who agree

up 8% since 2018

When work and life blend and enrich each other, everybody wins:

Healthcare employees who agree

down 7% since 201877%85%

MetLife’s 17th annual U.S. Employee Benefit Trends Study examines both employer and employee mindsets to help healthcare employers effectively navigate industry growth by optimizing benefits strategies to attract, retain, and support a diverse and vital workforce.

3 Financial Concerns Underscore Work-Life Realities

01Financial Concerns Underscore Work-Life Realities

4Financial Concerns Underscore Work-Life Realities

Working in healthcare comes with a unique set of challenges for employees. For many administrative and non-clinical employees, assisting patients and families dealing with illness and recovery can bring daily highs and lows.

A holistic work-life view must also factor in the personal stress each employee brings to work. For many healthcare employees, financial worries — both short- and long-term — come into play. Nearly half cite personal finances as their top source of stress, with only 54 percent saying they’re confident about their finances, which is considerably lower than the 63 percent of employees overall who express financial confidence.

Compared to counterparts across other industries, healthcare employees are less likely to have a budget or savings cushion equal to three months’ salary. Along with day-to-day financial stress, employees are concerned about their financial futures. Fifty-one percent say it’s likely they’ll postpone retirement, with only half reporting they’re on track to meet their long-term financial goals. Women, lower income employees, and employees without advanced degrees say they’re significantly less likely to be on track to achieve their financial goals.

Many healthcare employees lack confidence in their financial future

Women, lower-income employees, employees without advanced degrees are less likely to be on track to achieve financial goals.

Male

Female

41%

66%

$50,000 to $149,000

49%

$150,000+

71%

Under $50,00038%

HOUSEHOLD INCOME

Some college, no degree

37%

Undergraduate degree

55%

Graduate degree

65%

High school diploma or less39%

EDUCATION

GENDER

Women in healthcare: Heightened financial concerns

In an industry where more than 6 in 10 employees are female,3 women in healthcare report higher levels of financial concern across the board compared to male coworkers. In part, the heightened financial concerns correlate to lower salaries compared to male counterparts, as well as the fact that women in healthcare are more likely to classify their positions as “individual contributors” and less likely to classify as “executive leadership” compared to men.

MOST WOMEN IN HEALTHCARE CLASSIFY THEIR ROLE AS AN INDIVIDUAL CONTRIBUTOR

Individual Contributors

Executive Leadership

Middle Management

Male Female

Men

32%

57%11%

Women23%

74%3%

Confident about their finances

69%46%

0% 100%

Likely to have a savings cushion equal to about 3 months’ salary

60%39%

0% 100%

Worried about having enough money to pay bills if someone in household becomes disabled

73%59%

0% 100%

Likely to have a financial advisor

22% 34%

0% 100%

5

Financial wellness: The role — and opportunity — for employers

Fifty-five percent of healthcare employees believe employers have a responsibility for their financial well-being. Among millennials, the belief is stronger. Nearly seven in 10 millennials say employers have a responsibility for the financial wellness of employees.

Similarly, more than half of healthcare employees overall say employers are responsible for helping employees save for retirement. Among younger employees, the belief spikes to 68 percent for millennials and 73 percent for Gen Z.

Overall, healthcare employers agree, with 66 percent saying they have a responsibility for their employees’ financial well-being.

Employers have a responsibility for the financial well-being of their employees

Employees who agree

49%40% 66% 68%

30% 70%

Employers who agree

64%

30% 70%

Gen Z (Ages 21-22)

Millennials (Ages 23-36)

Gen X (Ages 37-52)

Boomers (Ages 53+)

Employers

For employers, financially stressed employees impact the bottom line, effecting productivity and distracting employees from the job at hand. For clinical employees, stressors can be matters of life and death for their patients. While 67 percent of healthcare employees say the benefits available through their employer help reduce their financial stress, employers may be missing additional opportunities to deliver resources and tools to help improve employee financial health.

Only 20 percent of healthcare employers currently offer financial wellness programs, which can help employees address short- and long-term financial concerns. By offering holistic financial wellness programs at the workplace, employers demonstrate support and recognition for the whole employee – in and outside of work. At the same time, financial wellness programs advance important organizational objectives. Employees with a good handle on their finances are likely to be more productive, engaged, and loyal.

In addition, offering financial wellness benefits can put employers ahead of the curve as they look to appeal to younger generations when replacing retiring boomer employees. Forty percent of Gen Z healthcare employees view financial planning and educational workshops and tools as a must-have benefit.

but only

86%

16%

of healthcare employees say financial planning tools to help them understand their options and achieve financial goals is a must-have or nice-to have benefit

of healthcare employees are taking advantage of the financial wellness programs offered by their employer

Financial Concerns Underscore Work-Life Realities

6The Essential Role for Benefits in Today’s Work-Life World

02The Essential Role for Benefits in Today’s Work-Life World

The essential role for benefits in today’s work-life world

The workplace environment, including culture and employee benefits, plays a vital role as healthcare employers take on the dual challenges of hiring in an extremely competitive market and reducing employee burnout.

Healthcare employers offer a variety of benefits designed to help their employees address both physical and financial well-being. And, overall, employees have an appreciation for the role employee benefits can play. Compared to employees overall, healthcare employees are more likely to say they understand the value of specific benefits, such as disability, accident, or life insurance. They’re also more likely to consider most benefits as “must-haves.”

49% of healthcare employees say better benefits would help them navigate and thrive in the workplace

However, healthcare employers may not be optimizing employee receptivity to these benefits. Healthcare employees are less satisfied with their benefits compared to employees across other industries. And satisfaction is trending downward, with 61 percent of healthcare employees saying they’re satisfied with their benefits in 2019 compared to 76 percent in 2018.

Employers are not on the same page. Seventy percent believe their employees are satisfied with their benefits offering, which is a slight uptick over 2018 levels, even as employees’ satisfaction decreased.

Gen Z Gen Y Gen XBoomer Gen Xother

industries

58%51%

60%71% 66%

A Satisfaction advantage when filling boomers’ roles

Satisfaction with employee benefits among Gen X employees is higher compared to other generational segments within healthcare — and Gen X employees across other industries.

And, in a potential recruiting advantage, 63 percent of Gen X employees cite benefits as an important reason for joining their employer, compared to 55% of healthcare employees overall who say the same.

8The Essential Role for Benefits in Today’s Work-Life World

Benefit choices: What employees expect

As employers compete for talent and promote healthcare careers to younger generations, the expectations employees have regarding their benefits provide critical insight into what will tip the scale.

Healthcare employees are looking for options to fit their needs, and they’re willing to chip in for choices. Sixty-three percent, up from 58 percent in 2018, say they’re interested in having their employer provide a wider array of non-medical benefits they can choose to purchase and pay for on their own.

The desire for more choices reflects a need to tailor benefits to fit individualized needs. More than nine in 10 healthcare employees see the ability to customize benefit selections to meet their needs as a nice-to-have or must-have. And, 76 percent say the ability to customize would increase their loyalty to their employer.

In contrast, 65 percent of healthcare employers believe the ability to customize benefits is important to their employees.

but only

61%

70%

of employees are satisfied with the benefits they receive through their employer

down 15% from 2018

of employers believe their employees are satisfied with the benefits they offer

but only

93%

65%

of employees say the ability to customize benefit selections to meet their needs is a nice-to-have or must-have

of employers say the ability to customize benefit selections to meet their employees needs is a nice-to-have or must-have

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Along with choices, healthcare employers looking to leverage benefits as a recruiting and retention differentiator can take a cue from employees about the appeal of emerging benefits. A holistic approach that augments traditional offerings with new options designed to support employees physically, emotionally, and financially can help employees bridge the gap between work and personal lives.

As healthcare employees look forward, they’re seeking support that helps mitigate their stressors and improve their quality of life. For employers, benefits delivering this type of support can be valuable tools in the battle against employee burnout.

Emerging benefits with appeal for healthcare employees and employers alike

Wellness programs

Wellness programs that support and reward healthy behaviors are highly valued by employees. For employers, they’re a tangible element within an overall culture that demonstrates holistic support for employees.

Phased retirement

Phased retirement allows employees to work part time as they begin to take retirement benefits. Along with giving employees the flexibility to stay active and engaged, it can help employers slow the exodus of experienced employees.

Paid sabbatical programs

Paid sabbatical programs give employees the option to step away from day-to-day job stresses without damaging their career. They can also be a valuable tool for employers seeking to reduce employee burnout and retain employees.

75%

71%

70%

Onsite healthcare, including mental health counseling

Onsite access to medical care and mental health counseling offer a convenience factor for busy employees. For employers, onsite health centers can provide essential support for overall employee well-being.

66%

The Essential Role for Benefits in Today’s Work-Life World

10Optimizing Workplace Culture to Drive Purposeful Differentiation

03Optimizing Workplace Culture to Drive Purposeful Differentiation

For healthcare employers competing to fill open positions with engaged employees who will stick around, workplace culture cannot be left to chance. There’s a growing recognition for the role human resources can play, with 39 percent of employers saying their HR departments are playing a more strategic role, a five percent jump over 2018.

Across the healthcare industry, purpose gives meaning to the work employees do. Seventy-three percent of healthcare employees feel a strong sense of purpose in their work, which is most commonly driven by regularly accomplishing daily tasks, working on something they’re passionate about, and doing work that contributes meaning to their life. Compared to the workforce overall, having an impact on the community is a more common contributor to feeling purpose at work for healthcare employees.

As employers focus on attracting and retaining employees, conveying — and delivering on — a sense of purpose is crucial. An overwhelming 96 percent of healthcare employees cite a sense of purpose as a key consideration when accepting a new job or deciding to stay with their current employer. And, while younger generations may grab the headlines when it comes to seeking purpose through their work, 81 percent of boomers in healthcare say their work provides a strong sense of purpose.

In a rapidly growing industry like healthcare, a vibrant workplace culture, paired with robust benefits programs, can be a critical linchpin as employers prioritize programs, select benefits, and create work-life experiences that will take the industry into the future.

12Work-Life Reimagined: Actions Healthcare Employers Can Take Today

04Work-Life Reimagined: Actions Healthcare Employers Can Take Today

13 Work-Life Reimagined: Actions Healthcare Employers Can Take Today

Seek deeper understanding

• Add questions to employee surveys that can provide deeper insights into the attitudes, motivators, and pain points of employees — both in and out of work. Aim to go beyond typical demographic information to explore gender, generational, and job type differences.

• Leverage insights to tailor communications to be meaningful for various employee groups and drive greater program awareness, usage, and, ultimately, impact. For example, recognize lower levels of financial confidence among women to design tools and communications that align with their top financial concerns.

Help employees achieve financial wellness

• Deliver financial wellness programs, leveraging tools and resources that are shown to drive real impact — such as personalized advice, one-on-one guidance, and goal-oriented short- and long-term planning.

• Capitalize on the appeal of financial wellness programs for Gen Z employees as a differentiator for both recruiting and retention.

Design holistic, employee-centric programs

• Tackle burnout by offering holistic benefits and integrated policies that support employees’ lives outside of work. Explore programs that reward healthy behavior, offer mental health counseling, and provide options for paid sabbaticals.

• Explore and test phased retirement to give employees options to stay engaged and keep critical experience onboard.

• Enhance retirement savings programs to help employees effectively put money aside and manage their savings as they prepare for retirement.

• Drive increased employee satisfaction by offering a wide range of benefits, both employer- and employee-paid, so employees have the ability to build packages that are personalized to their individual needs.

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METHODOLOGY

MetLife’s 17th Annual U.S. Employee Benefit Trends Study (EBTS) was conducted in October 2018 and consists of two distinct studies fielded by Engine Insights - a practice area of Engine, a data driven marketing solutions company. The employer survey includes 2,500 interviews with benefits decision makers and influencers at companies with at least two employees. The employee survey consists of 2,675 interviews with full-time employees, ages 21 and over, at companies with at least two employees. Among the Healthcare industry, this includes 251 employees and 236 employers.

MetLife, Inc. (NYSE: MET), through its subsidiaries and affiliates, is one of the largest life insurance companies in the world. Founded in 1868, MetLife is a global provider of life insurance, annuities, employee benefits and asset management. Serving approximately 100 million customers, MetLife has operations in nearly 50 countries and holds leading market positions in the United States, Japan, Latin America, Asia, Europe and the Middle East. For more information, visit www.metlife.com.

ABOUT METLIFE

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1. Bureau of Labor Statistics’ Employment Projections 2016-2026.

2. Association of American Medical Colleges, 2017.

3. Brink News, March 2019. https://www.brinknews.com/women-make-up-65-percent-of-healthcare-workers-but-only-13-percent-of-ceos-why/