Some 89% of higher education institutions believe their employee benefit programs can help them to attract and retain high-quality talent.
That was one of the findings of a biannual survey of retirement plan decision-makers in the higher education sector by Voya Financial, according to a news release Tuesday.
Some 80% of respondents agreed that attracting and retaining high-quality staff and administrators are "by far, the greatest challenges facing" higher education institutions, the news release said.
"The ability to attract and retain top talent has been a challenge facing many industries, but for those in the higher education sector, it has only been exacerbated by the pandemic," said Brodie Wood, vice president and national practice leader for health care and education, in the release. "When you consider today's job market with more competition for companies to find staff in general, in most cases, higher ed institutions are not able to compete with the benefit of flexibility that many jobs outside the sector offer today — such as the desire to work completely remotely, which many colleges and universities do not allow."
Mr. Wood added: "At the same time, these challenges present many unique opportunities for these institutions to look further into their benefits offerings as an area to stand out among their peers."
When respondents were asked to identify the most important benefits in attracting talent, No. 1 was a defined contribution plan, followed by paid-leave benefits and a defined benefit plan.
Some 90% of respondents also agreed that a DC plan "helps attract high-quality employees," while 87% agreed that it "helps retain high-quality employees."
About half (50%) of responding institutions said they have either started or increased the employer match to their DC plan since January 2021, in response to staffing pressures and the pandemic.
The survey also indicated that a vast majority of plan sponsors agreed that their employees face major challenges with respect to their ability to save for retirement, including caregiver responsibilities (87% of respondents), student loan debt (85%) and the impact of inflation (84%). Consequently, some institutions are dealing with these issues by running wellness programs such as assistance with student loan repayment (49%) and planning for caregivers and employees with special needs and disabilities (42%).
In addition, 83% of respondents think the idea of matching student loan payments with a retirement plan contribution is "more important today than it was pre-pandemic."
When asked which issues have grown the most in importance since the pandemic began, 85% of respondents said the adoption of "strong socially responsibly business practices and policies across ESG areas"; 82% pointed to providing student loan assistance; and 81% said the development and expansion of a diversity, equity and inclusion hiring strategy and/or programs to attract talent.
"While benefits can play a pivotal role for many organizations to help attract and retain talent today, those in the higher education sector are faced with even more-complex needs, so it's encouraging to see the DC plan considered to be a core tool that organizations are using to help address the challenge," Mr. Wood said in the release.
In addition, retirement plan advisers also play an increasingly crucial role at higher education institutions, the survey found. Some 67% of higher education institutions said they depend on the services of a plan adviser or consultant. Almost all the remainder said they plan to hire an adviser in the next year.
"Retirement plan advisers can play a critical role for employers to establish a plan that can both meet their needs as well as guide their employee toward a financially secure retirement," Mr. Wood added.
Voya is the record keeper and service provider for more than 1,500 higher education retirement plans.
The survey was conducted for Voya by Greenwald Research, a market research firm, and initially consisted of an online survey between June 29 and July 19 of 301 retirement plan decision-makers from higher education organizations that offer a DC retirement plan. The second phase was "in-depth interviews among a select group of decision-makers" in August.
Voya had $644 billion in total assets under management and administration as of June 30.
