Prudential Group Insurance President: The Workforce Risk Employers Can't Afford to Ignore

Newsweek

4 days ago

Business leaders are focused on plenty of external risks right now—economic volatility, changing regulations, and rising costs. But there's another threat that isn't getting enough attention: A growing disconnect between what employees need from their benefits and what companies are offering.
That gap is more than a human resources issue. It's a blind spot with real bottom-line consequences. It puts recruiting, reputation, and retention at risk at a time when none of those can be taken for granted.
An office block with lots of lit up windows and late office workers inside is pictured.
An office block with lots of lit up windows and late office workers inside is pictured.
Getty Images
In Prudential's Benefits & Beyond 2025 study, we found that while 86 percent of employers say their benefits are modern, only 59 percent of employees agree. And the impact shows up quickly: When benefits are seen as modern, employee satisfaction hits 91 percent, and 90 percent say they're likely to stay. But when benefits don't feel relevant, satisfaction drops to 68 percent and retention falls to 73 percent.
In my years in the workplace benefits industry, I've seen companies lose great talent—not because of salary, but because the support didn't line up with people's lives. Lack of caregiving help, limited mental health access, or the stress of unexpected medical costs can be a catalyst to quiet quitting—or walking away entirely.
And I've seen something else too: wide disparities in how benefits are packaged, delivered, and explained. Across the industry, there's little consistency. Some employers offer robust options—legal services, supplemental health, accident insurance—while others offer just the basics. Even more troubling is how little education employees receive about their options. Too often, they're left to decode PDFs in a short open enrollment window—hardly the recipe for confident decisions.
We're at a turning point—and historically, this kind of disconnect is rare. There have only been a handful of times when employers and employees were this far apart on what a "good job" looks like: During the industrial shifts of the late 20th century, the dot-com boom when perks replaced real support, and now, in a post-pandemic workforce shaped by new expectations.
People are juggling more than ever—family responsibilities, mental health challenges, rising costs, and the need for more flexibility. They're not just asking for more benefits—they're asking for better ones.
But many companies still miss the mark. Employers often prioritize mental and physical health. But employees told us their biggest concerns are saving for retirement, managing paycheck-to-paycheck stress, and feeling secure in their jobs. That disconnect—especially around financial wellness—shows how easy it is to assume we're getting it right when we're not.
And the consequences are real. I've read customer feedback by people who suddenly are without income but still have a life to manage, saying, "If I didn't have disability insurance, I don't know how I would've bridged the gap." Those reminders of the real-world value of our products are humbling—and they push us to do better.
One moment that stuck with me happened during a benefits enrollment event for teachers in Trenton, N.J. The presenter failed to connect with the audience, had no materials prepared, and referenced examples that didn't resonate with the audience or reflect their real lives. Most attendees sat quietly on their phones, disengaged.
It hit me hard: This is the reality for many workers. We assume they have the tools, the time, and the context to make the right benefit choices. But often, they don't. If we want employees to engage with benefits, we must meet them where they are—with empathy, relevance, and support.
Benefits aren't a cost—they're one of the best tools leaders have to earn trust and keep great people. The companies that listen, cut through the clutter, and meet people where they are—those are the ones that will win.
As expectations shift, benefits will become a test of whether a company really understands and values its people. The next phase of workforce strategy won't be driven by perks, it'll be driven by purpose. And benefits will say a lot about where a company stands.
Michael Estep is president of Prudential Group Insurance, a business unit of Prudential Financial, Inc., which manufactures and distributes a full range of group life, long-term and short-term disability, voluntary, corporate, and trust-owned life insurance in the U.S.
The views expressed in this article are the writer's own.