Fresh study analyzes employer strategies and benefit packages during times of disruption and evolution

/PRNewswire/ - Almost eight in 10 employers (78%) express optimism regarding their organization's future, and over half (52%) note that advanced technologies are enhancing their business performance and routine operations, per Employers, Workers, and the New World of Work, a recent survey report from nonprofit Transamerica Institute in partnership with its Transamerica Center for Retirement Studies (TCRS). However, many employees lack this same enthusiasm, with 49% frequently experiencing exhaustion and burnout.

"While AI holds the potential to transform business approaches, employers remain enthusiastic about what lies ahead, yet they might be neglecting their greatest resource - their workforce," stated Catherine Collinson, CEO and president of Transamerica Institute and TCRS. "People are essential for deploying and managing emerging technologies, and currently, employees face significant stress amid economic pressures."

The study highlights 10 critical employer-employee disconnects that, if ignored, may hinder employee output and employers' capacity to achieve optimal outcomes:

AI's effects on employment. Eighty-two percent of employers are using or intend to use AI to enhance their human teams, and among these, 89% anticipate workforce changes like job evolution (67%), new roles (50%), or reductions (36%). Still, only 34% of employers view workforce management as a primary leadership focus. Meanwhile, 44% of workers fear AI and automation will render their skills obsolete, but just 38% of employers think their staff shares this concern.
Mental well-being. Forty-two percent of workers regularly feel anxious or down, 42% unmotivated or swamped, and 31% isolated or lonely. Although 70% of employers worry about staff mental health, only 27% provide an employee assistance program.
Financial pressures, extra jobs, and gigs. Forty-three percent of workers struggle to cover expenses, and 26% have started side jobs or hustles due to inflation-driven costs. Eighty-six percent of employers acknowledge the high living expenses burdening employees, yet 54% are concerned about staff taking second jobs for additional income.
Career growth opportunities. As new tech proliferates, skill-building is crucial. Eighty-six percent of employers accept responsibility for updating employee skills, but only 38% prioritize talent development. Merely 49% of workers report staying current with job skills.
Financial education. Solid personal finance knowledge empowers workers to handle money confidently, aiding workplace success. Employers may overestimate staff expertise: 39% think employees know "a lot," versus 21% of workers agreeing. Just 26% of employers include financial wellness programs in benefits.
Health, welfare, and retirement perks. Employees prize benefits safeguarding health and wealth, such as medical coverage, retirement savings, dental, life, and vision plans. Yet fewer employers provide them; for instance, 91% of workers deem a 401(k) or equivalent vital, but only 61% of employers offer it.
Caregiving duties. With aging populations and rising long-term care costs, many workers juggle caregiving. Thirty-six percent are or have been caregivers (16% now, 22% previously). Ninety-three percent of employers support caregiving staff, but few offer dedicated programs like unpaid leave (36%), paid leave (35%), online tools (22%), or subsidized backup care (22%).
Flexible scheduling options. Eighty-six percent of workers see flexible arrangements as essential, and 93% of employers agree. Common offerings include adjustable schedules (54%), needed changes (49%), and hybrid models (37%), though robust choices remain limited.
Retirement pathways. Employees are redefining retirement, often needing to work longer for financial or health reasons. Forty-four percent plan to retire post-65 or not at all, and 51% intend paid work in retirement. Eighty-three percent of employers back working beyond 65, but only 68% provide transition flexibility, and 39% formal phased retirement.
Age-inclusive workplaces. Per U.S. Bureau of Labor Statistics, the workforce is graying: 23% of workers are 55+, with 65+ projected as the fastest-growing group from 2024-2034.¹ Eighty-nine percent of employers view their firms as age-friendly with suitable opportunities, arrangements, and training. However, only 72% of workers agree.

"These findings point to chances for employers to reassess priorities like skill training, mental health support, flexible options, caregiving aid, retirement transitions, and benefits. Such steps can yield mutual benefits," Collinson noted.

"Society has entered a transformative phase affecting all facets of life. As employers integrate advanced tech, they must prioritize their people. Workers, too, need adaptability to thrive - laggards risk being left behind," Collinson added. "The trajectory of living, working, and retiring hangs in the balance. All must contribute to innovation while upholding core societal principles in this evolving work landscape."

Employers, Workers, and the New World of Work draws from a late 2025 survey of 1,900 U.S. for-profit employers, compared to over 6,100 workers at similar firms. It delves into employer priorities, practices, and benefits, contrasting views with worker experiences and segmenting by company size. Access the report and related studies at www.transamericainstitute.org. Follow on LinkedIn, Facebook, and X.

About Transamerica Institute
Transamerica Institute^® is a nonprofit foundation focused on researching and promoting retirement security alongside health-financial well-being links. Its Transamerica Center for Retirement Studies^® (TCRS) runs one of the most extensive ongoing retirement surveys. This content is educational only and not professional advice on insurance, investments, taxes, or similar. Consult experts for personal needs. www.transamericainstitute.org

About the Survey
The analysis in Employers, Workers, and the New World of Work was developed by Transamerica Institute's research team.

Employer survey: A 20-minute U.S. online poll by The Harris Poll for Transamerica Institute and TCRS, September 18-October 4, 2025, with 1,900 benefits decision-makers at for-profit firms employing staff nationwide. Weighted by employees, revenue, industry, state. Bayesian credible interval: ±3.3% at 95% confidence. Wider for subsets. Percentages rounded.

Worker survey: From the 26^th Annual Transamerica Retirement Survey, a 26-minute U.S. online poll by The Harris Poll for Transamerica Institute and TCRS, September 16-October 17, 2025, with 10,015 adults plus 2,008 for-profit workers oversample (6,153 subsample here). Weighted by demographics. Bayesian credible interval: ±1.8% at 95% confidence. Wider for subsets. Percentages rounded.

¹ Source: United States Bureau of Labor Statistics, Employment Projections, Civilian Labor Force by Age, Sex, Race, and Ethnicity, https://www.bls.gov/emp/tables/civilian-labor-force-summary.htm

Transamerica Institute
Media contact: Kyle Moschen
kyle.moschen@transamerica.com

SOURCE Transamerica Institute