A tight labor market and new pandemic protocols have given U.S. workers influence over their careers never before seen.

With job switchers earning as much as a third more and companies eager to offer more generous 401(k), student debt, medical, flextime and other benefits, Newsmax Finance turned to a leading retirement adviser to find out what benefits his plan sponsor clients are offering.

Daniel J. Peluse, executive director of Wintrust Retirement Benefits Advisors in Chicago, recently sat down for a Q&A with Newsmax Finance Editor Lee Barney.

A five-time finalist for PLANSPONSOR’s Retirement Plan Adviser of the Year award and recognized as a Top Retirement Advisor Under 40 by the National Association of Retirement Advisors, Peluse began his career at Morgan Stanley Smith Barney and is knowledgeable about not only 401(k) plans, but also pensions, executive compensation plans and stock options.

Newsmax Finance: With unemployment at 3.5% and the labor market remaining tight, are companies offering more generous benefits?

Daniel Peluse: Companies are looking at all aspects of their benefits offering in order to stand out from the competition. Companies are considering, and in some cases have implemented, an increase to retirement plan contributions (both a 401(k) contribution match and profit sharing), employee financial wellness programs, emergency savings accounts—along with company contributions, offering student debt payment assistance and employee stock ownership plans, when possible.

Those industries competing for younger talent are considerably more focused on emergency savings, student debt repayment assistance and increasing retirement plan contributions.

NF: Student debt is a hot-button issue in politics, and awareness of it as a benefit is growing. Are your clients helping their workers with their student debt?

Peluse: Overall, we are not seeing a significant interest among businesses to offer student debt assistance benefits just yet. With uncertainty surrounding federal student debt forgiveness, many companies have taken a wait-and-see approach to implementing repayment assistance programs or incentives.

With the expiration of student loan repayment forbearance programs, we anticipate more interest in developing and implementing some version of employer student debt assistance, especially if companies continue to face a challenging labor market.

NF: Inflation has been top of mind among everyday Americans for the past two years. Are your plan sponsor clients accounting for raises or bonuses?

Peluse: Yes. Our clients, like the majority of business around the country, continue to face a difficult labor market.

While enhancing employee benefits is attractive to potential and current employees, compensation remains at the top of the list for the majority of American workers when deciding among available opportunities or remaining with their current employer.

NF: Conversely, economists and leading CEOs believe the U.S. is heading for a recession, if it is not already in one. Are any of your clients planning layoffs, furloughs or hiring freezes?

Peluse: Not at this time. The vast majority of our clients continue to deal with labor shortages and plan to continue hiring through at least the first half of 2023. While there are a few specific industries that are considering workforce reductions or modification, thankfully, implementation has yet to take place.

NF: Are you advising any of your clients that are concerned about profits and the economy to take a more creative approach to their benefits in order to build employee morale without raising costs?

Peluse: Most clients have already modified their benefits in response to the pandemic and plan to continue this approach moving forward.

That said, a few clients have developed more generous personal time off (PTO) benefits and significantly modified their hybrid work arrangements and in office schedules within specific industries to better meet the demands of prospective candidates and current employees.

NF: Any other interesting observations?

Peluse: Workers continue to look for flexibility and personal and financial wellness support.

While traditional benefits remain attractive and important, employees are looking for companies to provide more thoughtful and personal employee benefit options.