Higher Ed Employees Most Value Retirement Savings Plans, Health Insurance, PTO - But Priorities Vary Across Roles, Ages

Employees at risk of turnover prioritize retirement plans, health insurance more often than those not at risk of leaving

NEW YORK, Sept. 25, 2024 /PRNewswire/ -- Employees of colleges and universities most often rate a retirement savings plan (58%), health insurance (56%) and paid time off (47%) among the three employee benefits most important to them in a job – but how they prioritize benefits and job features varies across roles and ages. Prioritization of benefits and job features also differ between higher education employees at risk for turnover within the next two years –– and those not at risk.

Those are among the key insights from a new TIAA Institute and CUPA-HR report on how higher education employees prioritize a range of job features and employee benefits, and the implications for college and universities seeking to reduce employee turnover.

"Focusing on what higher ed employees want, need and expect in exchange for the work they do positions colleges and universities to effectively compete for talent in challenging labor markets," said Paul J. Yakoboski, TIAA Institute senior economist. He co-authored the report, "What do higher ed employees value most in a job?" with Melissa Fuesting, associate director of research with CUPA-HR.

Currently, 16 percent of full-time college and university employees pose a turnover risk – that is, they don't want to be working for, or think they won't be working for, their current employer in two years. Beyond the costs of hiring and training new employees, turnover can impact colleges and universities through the loss of key talent, internal rapport, and institutional knowledge.

"An organization can't provide every employee with everything they want," said Ms. Fuesting. "However, to be competitive in hiring and retention, it can think in terms of providing every employee with things they value."

Illustrating the differences in how benefits are prioritized, staff employees more often rank health insurance and a retirement savings plan among the three benefits most important to them, while faculty members have a greater tendency to rate education benefits, and health and wellness programs among their top three.

Health insurance is the most common top-three benefit for those under 40, while a retirement savings plan is the most common for those 60-plus.

When it comes to job features, salary, benefits, job security, and work-life balance are the features that tend to matter most for college and university employees– but there is a general lack of consensus among faculty members, administrators, and staff employees about what's most important.

Salary and benefits are most often rated among the three most important features, by 44% and 40% of employees, respectively. A greater share of staff employees, compared with faculty members and administrators, rate salary and benefits among their top three job features.

Different views about job features are found across age groups as well.  For example, salary is the most common top-three feature for those under age 40, while benefits are the most common for those age 60 and older.

The report offers several key insights regarding turnover-risk employees. Compared with non-risk workers, they more often rate health insurance (76% vs. 52%) and a retirement savings plan (67% vs. 57%) among their three top benefits. While staffing and resource shortages, stress and burnout, and lack of appreciation and recognition are problem areas among many higher education employees, that is particularly true for those posing a turnover risk: about 60% to 70% rate these issues as problems, versus about one half of those not at risk.

"Colleges and universities clearly can benefit by conveying all the ways in which they strive to address the varying needs of their employees, across various roles and life stages," said Mr. Yakoboski. "We hope our report helps institutions better emphasize their tangible and intangible rewards and benefits as workplaces – and reinforce their efforts to retain their most valued employees."

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 institutionsⁱ. It is the #1 not-for-profit retirement market provider, paid more than $5.7 billion in lifetime income to retired clients in 2023 and has $1.3 trillion in assets under management (as of 6/30/2024).ⁱⁱ

About CUPA-HR

CUPA-HR is the recognized authority on compensation surveys for higher education, with its salary surveys designed by higher ed HR professionals for higher ed HR professionals and other campus leaders. CUPA-HR has been collecting data on the higher ed workforce for more than 50 years, and we maintain one of the largest workforce databases in existence. Learn more about CUPA-HR .

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^­­­­i As of July 21, 2022. Based on data in PLANSPONSOR's 403(b) 2022 DC Recordkeeping Survey, combined 457 and 403(b) data.

ⁱⁱ As of June 30, 2024, assets under management (AUM) across Nuveen Investments affiliates and TIAA investment management teams were $1,349 billion.

©2024 Teachers Insurance and Annuity Association of America-College Retirement Equities Fund.

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SOURCE TIAA Institute