A shift in demographics is leading employers to rethink the strategies needed to stay competitive and provide the best employee benefits for the Hispanic community. This community now constitutes nearly 19% of the U.S. population and accounted for more than 50% of U.S. population growth between 2010 and 2020.
Employers can’t afford to overlook the values of Hispanic employees in order to offer them valuable employee benefits.
Our recent Winning with Wellbeing survey shows that fewer Hispanic workers (34%) participate in employer provided benefits, such as healthcare and retirement in comparison to the overall population (42%). And 47% receive neither healthcare nor retirement benefits (compared to 37% of the overall population).
The importance of family in the Hispanic culture
Research paints an interesting picture of how Hispanic employees value their family and balance their work/life responsibilities. The data shows that Hispanic employees are more likely to live in intergenerational households and are also more likely to have an elderly parent at home.
At the same time, Hispanic Millennial caregivers work an average of 42 hours per week, which is more than their counterparts. In essence, they’re highly committed to their families and their jobs.
Hispanics offer employers their dedication, effort and loyalty in exchange for the means to provide security for their family and loved ones. They are givers, and they’re passionate about taking care of their extended families without sacrificing their commitment to their work and careers.
By understanding that dynamic, employers can better develop the benefits packages that address those needs and challenges.
How can employers ensure their benefit packages are attractive to Hispanic workers?
Alight’s research reveals that 35% of Hispanic employees say that they would like healthcare options to cover a parent (as opposed to 27% for the general population). In addition, our research shows that Hispanic employees tend to value overtime pay more than their peers.
Nearly 60% surveyed in Alight’s research identify overtime pay as their highest-rated benefit, compared to 53% for other survey participants. This is particularly true for younger Hispanics—a segment that also saves at a higher rate than their peers. Their savings goals include emergency funds, long-term needs, retirement and down payments on housing (a goal they tend to rank higher than other segments).
In the current tight labor market, it’s critical for employers to understand the type of benefits that appeal to candidates. No matter how great benefits look on paper, Hispanics place greater value on their total compensation and how it will benefit all household members and ease financial pressures.
Benefit packages that will be most attractive to Hispanic workers will be inclusive of extended family members and extend financial wellbeing support beyond the traditional retirement focus.
The most attractive benefit package is competitive pay, to differentiate what they bring to the organization in addition to a real opportunity to grow within the organization. Benefits packages that help Hispanic colleagues juggle the competing priorities of work and family are a strategic advantage in attracting and retaining this group.
