Franklin Templeton: Pay Aligned, Communication Gap Persists

Key Takeaways

• Employers and workers agree on pay, retirement benefits, financial security
• 88% of employees want benefits explained in plain language
• 67% say attracting talent is harder than retaining it
• 71% of workers trust employer financial guidance despite complexity
• Simplifying benefit communication can boost employee confidence and retention

Pulse Analysis

The latest Voice of the American Workplace Survey, conducted by The Harris Poll for Franklin Templeton, underscores a growing disconnect between benefit investment and employee understanding. As companies pour more resources into retirement plans, flexible work arrangements, and technology, workers report feeling swamped by the sheer volume and complexity of options. This paradox—high benefit spend paired with low financial confidence—mirrors broader trends in employee financial wellbeing, where clarity and relevance have become as valuable as the dollar amount of the benefit itself.

For employers, the data translates into a clear business imperative. Talent acquisition is now more challenging than retention for 67% of respondents, and 81% anticipate a significant rise in benefit budgets within the next year. Yet without plain‑language explanations, these investments risk becoming cost centers rather than retention tools. Simplified communication not only reduces the frequency of repetitive employee queries—reported by 73% of employers—but also strengthens trust, with 71% of workers indicating they rely on their employer’s financial guidance. In a competitive labor market, clear benefit messaging can differentiate an employer and lower turnover costs.

The path forward involves three practical steps: redesign benefit plans for simplicity, deliver personalized, actionable guidance, and leverage data‑driven tools to match employee needs with appropriate solutions. Firms like Franklin Templeton are positioned to partner with employers, offering target‑date funds and capital‑preservation strategies that are both easy to understand and aligned with long‑term financial security goals. By prioritizing clarity over complexity, organizations can convert aligned priorities into measurable improvements in employee confidence, engagement, and ultimately, business performance.