Working to Survive: Nearly a third of employees manage their lives in survival mode. A challenge with consequences and solutions.Working to Survive: Nearly a third of employees manage their lives in survival mode. A challenge with consequences and solutions.Working to Survive: Nearly a third of employees manage their lives in survival mode. A challenge with consequences and solutions.

Working to Survive

Perspective

The pain of living and working in survival mode is usually more dull than sharp, but it is nonetheless traumatic. Psychologically and physically, this discomfort is exhausting in the same way extreme stress or prolonged grief can be. And just like hunger or various chronic diseases, survival mode is the direct result of unmet needs. The good news is organisations can provide employees relief. Namely, stability and security. By reframing Total Rewards as a foundation for caring—rather than a bonus or retention plan—and by strategically optimizing offerings, tools, and resources to satisfy people’s most basic requirements, employers can help ensure the strain and distraction of surviving are only temporary.

{{report_insert_1}}

Introduction

After a global pandemic, widespread layoffs, rising inflation, and intense political turmoil, employees around the world continue to work with uncertainty and instability. PwC, the multinational professional services firm, reports that 52% of all employees are “financially stressed,” meaning they’re unable to pay their bills, struggling to pay bills, or have little or nothing left for savings, holidays, and extras.1

Many of these employees feel trapped. They may have difficult personal circumstances, suffer overwhelming job responsibilities, or feel unappreciated and unfulfilled at work. All of which can push employees into survival mode.2

Nearly a third of employees (31%) told us they are “merely surviving.” In focus groups, people in survival mode described their circumstance in the following ways:

“It’s the paycheck, not the passion.”
“Having the bare minimum, doing the bare minimum.”
“You’re just staying stagnant.”
“You’re on the verge of burnout.”
“When you’re in survival mode, you can’t even see outside of that little bubble.”

Our research finds that surviving is a convergence of six factors that hinder the overall employee experience. These include financial insecurity, poor life balance, hopelessness about their future, and a lack of opportunity, resources, and autonomy.

{{report_insert_2}}

Organisations would do well to take these survival factors into account when considering the employee experience and employment benefits. Unfortunately, 60% of employees say their companies’ benefits do not currently meet their needs,3 and only 37% feel their organisation understands what they need in their personal lives and for their families.4 Compounding the problem, some companies are curtailing fundamental benefits and offerings, including healthcare, that employees need to survive.5

Employees depend on their employers to help them build security and stability in their lives: 92% expect their organisations to show care in the workplace, and 83% feel companies have a responsibility for the health and wellbeing of their people.6 For employees to thrive at work, they must first reach the threshold of surviving. Even highly engaged employees are at risk of leaving when they struggle to survive in their personal lives.7 This means addressing employees’ fundamental needs for financial, physical, and emotional security through Total Rewards offerings is essential to organisational success.

Done well, Total Rewards reflects a culture of care. When the workforce feels stable and secure, organisations benefit, too. The first step in moving employees out of survival mode is to see and present Total Rewards as an extension of a people-centered culture that appreciates and genuinely cares about employees. It must be less of a transaction or exchange and more of a commitment to address employees’ changing needs.

“If I don’t have financial security, I can’t have physical security because I don’t know if I’m going to be able to have a roof over my head. And if I don’t have financial security, it usually leads to anxiety and uncertainty and poor performance and all those things because I’m trying to figure out how to just meet basic needs.”
—Focus Group Participant, Business Development Manager

Not All Benefits Carry the Same Weight

Our research finds that employee survival is a continuum from low to high. Based on the degree to which employees feel impacted by the six survival factors, we can identify whether individuals are surviving on a lower or higher level. The difference is significant. Those on the higher side meet a baseline of immediate security and stability but lack opportunities for growth and development. Those on the lower end of surviving are less financially secure and less likely to feel optimistic about work or remaining with their organisation. They’re also 5x more likely to feel work has a negative impact on their physical health and have much higher odds of anxiety and burnout (6x and 12x respectively).

A table showing the odds of key outcomes for high- and low-surviving employees

For employees in any part of survival mode, the two offerings that matter most are compensation and physical and mental health benefits. Covering their monthly expenses is employees’ top concern and nearly 30% of low-income workers take a second job or do gig work to supplement their income.8 Until employees meet their financial and health needs, they can’t think about finding meaning or fulfillment in their work.9 Other Total Rewards offerings like skill building or career development are simply not relevant yet.

However, as the following table shows, when compensation and health benefits are adequate, the odds of fulfillment at work improve for both low- and high-surviving employees.

A table showing the odds of fulfillment when satisfied with compensation and health benefits

In terms of employee engagement, the data show that if overall compensation is inadequate, offerings such as incentive pay and even health benefits can actually have a negative effect for employees on the low end of surviving.

A chart showing the probability of increased engagement for high- and low-surviving employees when offered specific benefits

An important note: Once basic compensation needs are met, offerings like mental health counselling and parental leave have a greater impact on engagement than bonuses or incentive pay. This demonstrates that mental wellbeing—including feeling appreciated and a sense of belonging—is a critical part of what keeps employees who are on the high end of survival engaged and wanting to stay. Total Rewards programs that emphasize financial rewards at the expense of robust wellbeing and recognition offerings will ultimately fail to move these employees out of survival mode.

Rewards Are Incomplete Without Access and Communication

By themselves, benefits and other offerings are not enough. Employers also need to promote them, provide support to ensure people can use them, and subsidize the cost as much as possible. Only 40% of employees say their organisations communicate their workplace benefits well.10 Unfortunate, given that when people understand the benefits available to them, they’re 101% more likely to trust their organisation, 94% more likely to feel valued, and 60% more likely to want to stay with their employer for another year.11

These findings inspired us to conduct an experiment. In it, we found good communication and organisational support not only help ensure employees use health benefits. They also create feelings of belonging and a belief that the organisation cares about its people, which engenders loyalty.

{{report_insert_3}}

“Employees may be more receptive than ever to the charms of Total Rewards. Beyond salary, employees are placing a higher value on benefits like healthcare, including wellness, mental, and financial health, which help them thrive outside of work. To support thriving professionally, recognition and development play a strong role.”
—Elizabeth Baskin, CEO, Tribe Inc.

The Effects of Recognition, Now and Later

All employees have a fundamental need to be seen, valued, and appreciated. So we examined many of the benefits that strive to accomplish this, and one consistently had greater impact: recognition.

As a lever of Total Rewards, integrated recognition provides immediate security that tells employees the organisation appreciates and cares for them in the present, as well as future security that reinforces they’re a valued part of the organisation.12

When employees at either level of survival experience integrated recognition, several important outcomes improve, as detailed in the following table.

A chart showing the probability of increased outcomes for high- and low-surviving employees with integrated recognition

“If I’m not happy, if I’m not being heard…then I’m not going to be happy no matter how much money I make. It’s just not going to be rewarding for me. For me it’s important to have that communication, that sense of belonging.”
—Focus Group Participant, Quality Control Tester

Recommendations

To help employees in survival mode, focus on meeting their basic needs for security, provide and support adequate health offerings, and show appreciation for them.

1. Satisfy employees’ fundamental needs for immediate security

When basic needs like sufficient compensation and wellbeing go unmet, they create a ripple effect across the employee experience. Not only do they negatively affect the individual’s physical and mental health, they also harm work-related performance and engagement. Any supplemental Total Rewards offerings will not fill the gap.

Ensure employees have adequate base compensation (outside of bonuses and incentives) that aligns with local market rates, inflation, and skills required for the job. And provide for mental health benefits in addition to physical health benefits. Organisations with robust mental health offerings have 4x better odds of employee retention and 8x better odds of employees feeling a strong sense of fulfillment at work.

Furthermore, while any access to essential benefits has a positive effect, the overall impact on metrics like engagement is significantly greater when the benefits come from the employee’s organisation, as seen in the following table.

A chart showing the odds of increased engagement at work by access to offerings (compared to no access)

People who must rely on an external source for health insurance—e.g., spouse, partner, parents, or third-party vendor—also experience higher stress and anxiety.

{{report_insert_4}}

2. Provide access, communication, and support for Total Rewards offerings

Great offerings come up short without proper communication.

Clearly explain what Total Rewards offerings you provide and why you offer them. Align your offerings and messaging with financial stability and health security—for both immediate and future needs. Then ensure information is easy to find and understand, and provide resources to help people access and fully use their benefits. Also, fund as much as possible to minimize employees’ out-of-pocket costs.

As mentioned in the introduction to this report, organisations can and should use Total Rewards to demonstrate they care about their people. Including this sentiment in communicating and supporting Total Rewards builds a sense of belonging and loyalty.

3. Use recognition to enhance employees’ sense of security

Increasing compensation or adding benefits isn’t always an option for organisations—but extending genuine recognition is. Frequent, meaningful recognition at all levels can have a powerful impact on how an employee perceives their experience.

Recognition can lighten the weight of difficult circumstances. Employees in survival mode whose organisations use integrated recognition programs14 have increased probability of:

  • Engagement (86%)
  • A strong sense of opportunity (111%)
  • A strong sense of success (131%)

Invest in recognition that is frequent, specific, genuine, and an integrated part of the employee experience. Ensure all employees—including those who are frontline or offline15—are recognized and able to recognize one another.

{{report_insert_5}}

“You could make a little bit less money, but if you’re happy, if you’re heard…if my boss was able to say, ‘Hey, I’m sorry we’re not able to give you an increase this year, but you’ve done a great job, the whole company recognizes that, C-suite recognizes that, and we’re hoping that next year will be better and please ride it out with us,’ I would have nothing but respect for that.”
—Focus Group Participant, Payroll & Benefits Manager

Working To Survive—Key Takeaways

For employees in survival mode, Total Rewards should meet basic needs for stability and security—compensation, physical and mental health benefits, and recognition.

After basic compensation needs are met, mental health offerings have the greatest impact on employees in survival mode.

Access and support for both physical and mental health benefits are key to positive outcomes.

Integrated recognition helps employees feel an increased sense of both security and belonging.

Working to Survive Sources

  1. Global Workforce Hopes and Fears Survey 2024, PwC.
  2. “Is Your Job Causing Survival Mode?” Jo Banks, LinkedIn, May 10, 2022.
  3. “Rethinking Total Rewards,” Mercer webinar, March 29, 2023.
  4. “Rethinking Your Approach to the Employee Experience,” Harvard Business Review, March–April 2020.
  5. “Why a big law firm is rolling back parental leave,” Emily Peck, Axios, April 12, 2024.
  6. MetLife’s 22nd Annual U.S. Employee Benefit Trends Study, MetLife, 2024.
  7. “Has Total Rewards Totally Changed?” Elizabeth Baskin, Forbes, May 2, 2023.
  8. “Mercer Report: 3 out of 4 US employees are significantly financially stressed,” Mercer, October 27, 2022.
  9. “Finding Fulfillment,” 2023 Global Culture Report, O.C. Tanner Institute.
  10. “Employee Benefits Influence Worker Satisfaction but Lack of Awareness Could Undermine Their Impact,” LIMRA, July 19, 2022.
  11. MetLife’s 20th Annual U.S. Employee Benefit Trends Study, MetLife, 2022.
  12. “Integrated Recognition,” 2023 Global Culture Report, O.C. Tanner Institute.
  13. “Domino’s employees receive wages, tips instantly,” Employee Benefit News, April 21, 2020.
  14. “Integrated Recognition,” 2023 Global Culture Report, O.C. Tanner Institute.
  15. “The 80% Experience,” 2024 Global Culture Report, O.C. Tanner Institute.
  16. “Spartan Light Metal Products: Celebrating 60 Years of Great Work,” O.C. Tanner, 2022.
Methodology
30% of employees report they are merely surviving
Figure 3. Surviving Index
The six factors that limit employees to a mindset of surviving in the workplace.

Experiments

Health Perks: How and How Much Do They Make a Difference?

We conducted two experiments to test a hypothetical approach to offering physical and mental health benefits. In both instances, we found that when organisations provide benefits that meet employee needs, and then clearly communicate and support the offerings (with internal resources for guidance and questions), positive employee outcomes like loyalty, engagement, and belonging increase.


Experiment 1: Physical Health

Scenario

You’ve just started a job at a new organisation. Your job meets your basic financial needs; however, you don’t know much about your benefits package.

A table describing the control and treatments used in Experiment 1 about physical health perks, and showing the various outcomes based on whether those perks meet employee needs and the cost to the employee

Experiment 2: Mental Health  

Scenario

You’ve just started a job at a new organisation. Your job meets your basic financial needs; however, you don’t know much about your benefits package.

A table describing the control and treatments used in Experiment 2 about mental health perks, and showing the various outcomes based on whether those perks meet employee needs and the cost to the employee

Case Study—Payday From the Employee Perspective

Pizza makers and delivery drivers at Domino’s® franchises no longer have to wait two weeks to receive their wages. Through new partnerships and technology, employees can receive their hourly pay, tips, and mileage reimbursement at the end of each shift.

This example of payroll flexibility gives workers more immediate access to their paychecks and helps them feel more secure about their future.13

Case Study—Making Recognition Work for Everyone

Spartan Light Metal Products, an engineering solutions company, wants all its employees to feel appreciated and recognizes them throughout the year with regular employee appreciation luncheons, safety milestone celebrations, holiday and birthday gifts, and performance awards.

The company marked its 60th anniversary with an event and gave every employee a custom gift they could share with their families. Melissa Markwort, Vice President of Program Management, says, “We talk a lot about how our employees are our most valuable asset for our business. Nothing really happens without them…and we want to celebrate that.”16