Investment trends and employment demands are rapidly changing the landscape of the modern workforce. As younger employees begin to enter the workforce, HR professionals must stay up-to-date with these trends to meet the needs of your organization and attract top talent.
In this blog, we'll explore common investment trends and employment demands of the up-and-coming workforce and provide actionable strategies for employers to meet these demands.
Specifically, we'll examine how Health Savings Accounts (HSAs) can help address the evolving needs of employees and improve an organization’s recruitment efforts. So, whether you're a seasoned HR veteran or just starting your career, this blog is for you. Let's dive in.
Current Investment Trends Leading the New Workforce
In recent years, several investment trends have emerged that are reshaping the modern workforce. Here are some examples:
- Using HSAs for Retirement
One of the most significant investment trends affecting the workforce today is the use of Health Savings Accounts (HSAs) for retirement planning. About 48% of Millennials and Gen Z employees are investing for retirement through an HSA. An HSA is a tax-advantaged savings account that individuals can use to pay for qualified medical expenses. Unlike Flexible Spending Accounts (FSAs), HSAs allow individuals to roll over unspent funds from year to year and invest those funds in mutual funds or other investment vehicles.
The implications of this trend are significant for both employees and employers. For employees, supplementing their retirement account with an HSA investment can provide a powerful tool to save for future medical expenses and long-term retirement needs. For employers, offering an HSA as part of a benefits package can help attract and retain top talent and provide employees with an added incentive to participate in high-deductible health plans.
As organizations become increasingly reliant on technology, artificial intelligence (AI), and automation, cybersecurity has become a top concern for businesses and employees. From data breaches to ransomware attacks, cyber threats can have a devastating impact on an organization's reputation, finances and operations and can be detrimental to individual consumers.
To keep employees safe in a world of expanded technological features, it’s important for HR professionals to work with organizations to ensure that they have robust cybersecurity policies and procedures in place. This may include investing in employee training, implementing multi-factor authentication and regularly testing systems for vulnerabilities.
- Sustainability and ESG Investing
Finally, sustainability and environmental, social and governance (ESG) investing are emerging as important investment trends for the workforce. As concerns about climate change and social justice grow, more and more investors are seeking to align their investments with their values.
For employees, working for an organization that prioritizes sustainability and ESG investing can provide a sense of purpose and meaning. For employers, incorporating sustainability and ESG investing into their investment strategy can help attract and retain top talent and improve their reputation among customers and stakeholders.
Employment Demands of the Up-and-Coming Workforce
As the workforce continues to evolve, so do the demands of the employees who make it up. Here are five factors that younger employees are looking for from their employers:
- Work-Life Balance
The new generations of employees are looking for a better and more authentic work-life balance than previous generations. In 2022, 72% of people looking for a job believe that work-life balance is an important factor to consider. They want to be able to pursue their passions, spend time with their families, and have a life outside of work.
- Professional Development
Younger employees crave opportunities to learn and grow in their careers. They want to be challenged, mentored and given opportunities to take on new responsibilities.
- Diversity, Equity and Inclusion (DEI)
Today’s workforce is increasingly diverse, and its employees want to work for organizations that reflect and embrace that diversity. In fact, over 60% of workers say that they consider DEI to be an important factor in their company's ability to drive success. Employees want to feel valued and included, regardless of their background or identity.
- Purpose and Meaning
More so than any other generation, younger employees are looking for more than just a paycheck. They want to work for organizations that have a clear sense of purpose and are making a positive impact on the world.
Younger employees want more flexibility in their work arrangements. In fact, roughly 59% of employees reported that “flexibility” was more important to them than salary or other benefits. They want the ability to work remotely, to have flexible schedules and to work in a way that fits their individual needs and preferences.
By understanding these employment demands, HR professionals can better attract and retain top talent and build a more engaged and productive workforce. In the next section, we'll explore how employers can use investment and employment trends to meet these demands and create a workplace that appeals to the up-and-coming workforce.
How You Can Meet the Demands: Strategies for Brokers and Employers
To meet the investment and employment demands of the up-and-coming workforce, employers and brokers can use a variety of strategies. Here are just a few!
- Offer Robust HSA Investment Options
Employers can choose to offer HSAs with robust investment features that allow employees to save for retirement and invest in a diverse range of assets. Brokers can educate employers about the advantages of these HSAs and help them select the right provider and investment options.
- Provide Professional Development Opportunities
Employers can offer professional development opportunities that allow employees to learn new skills and advance their careers. This can include mentorship programs, training sessions and opportunities for job rotations.
- Embrace Diversity and Inclusion
Create a more diverse and inclusive workplace by implementing policies and practices that foster equity and respect for all employees. This can include training programs, diversity and inclusion councils and employee resource groups.
- Building a Sense of Purpose
Build a sense of purpose by articulating a clear mission and vision for the organization and involving employees in activities that support that mission. This can include volunteer work, philanthropic initiatives and sustainability programs that can enhance overall corporate culture.
- Offering Flexible Work Arrangements
Offer flexible work arrangements that allow employees to work remotely, have flexible schedules, and customize their work arrangements to fit their needs. This can include telecommuting options, flexible work hours and job-sharing programs.
By using these strategies, employers and brokers can create a workplace that meets the investment and employment demands of the up-and-coming workforce. This not only supports current employees but also attracts and retains new employees in an ever-changing and competitive job market. Not to mention, you’ll benefit from increased productivity and employee satisfaction.
Building a Better Workforce
In today's rapidly changing job market, employers and brokers must stay abreast of investment and employment trends to attract and retain top talent.
By offering HSAs with robust investment options, providing professional development opportunities, embracing diversity and inclusion, building a sense of purpose and offering flexible work arrangements, employers can create an environment that meets and exceeds the demands of the up-and-coming workforce.
If you're an employer looking to meet the investment and employment demands of your evolving workforce, we recommend starting with an evaluation of your current benefits and policies. Identify areas where you can make improvements and consider partnering with a third-party benefits administrator who offers modern workforce solutions and can help you select the right employee benefits options and develop a comprehensive strategy.
At Clarity Benefit Solutions, we have extensive experience in managing HSAs and helping employers meet the demands of their workforce. Contact us to learn more about new workforce programs and how we can help you create a workplace that attracts and retains top talent in today's competitive job market.