Study of Employee Benefits Trends

Transcription

1 10th Annual Study of Employee Benefits Trends

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3 SHIFTING TIDES, GROWING DEMANDS: A BIGGER ROLE FOR BENEFITS Despite uncertain times, the potential of benefits to help attract and retain key talent and move the needle on employee productivity is stronger than ever. Benefits as driver of business goals: 60% of surveyed employers recognize that the precarious economic climate is creating opportunities to drive human capital objectives with benefits. Seeing benefits through employees eyes: The Study finds employees less committed to their employers, but at the same time, highly dependent on their workplace benefits. New generational outlooks will impact future strategies: Today s economic conditions are driving fundamental differences in younger workers, including how they look at the benefits they get at work.

4 BENEFITS AS DRIVER OF BUSINESS GOALS A significant segment of all employers (60%) see an opportunity for benefits strategies to improve employee attraction, retention and productivity. 70% of employers report they intend to maintain their current level of benefits even if some (30%) will do this by shifting costs to employees.

5 STICKING WITH CURRENT PROGRAMS AND COVERAGES 81% of employers say that over the next 18 months, they intend to maintain current benefit coverage levels. 56% of employers expect to continue to pay for medical insurance when the Patient Protection and Affordable Care Act (PPACA) is fully implemented.

6 SEEING BENEFITS THROUGH EMPLOYEES EYES The all-important benefits satisfaction connection: Employees who are very satisfied with benefits are nearly three times as likely to say they are very satisfied with their job and less likely to plan to leave.

7 EMPLOYEES HAVE ONE FOOT OUT THE DOOR One in three employees report that they hope to be working for a different employer in Employee loyalty continues to decline and has now reached a seven year low.

8 BENEFITS CAN DRIVE EMPLOYEE LOYALTY Employers underestimate the power of benefits especially non-medical coverages and voluntary benefits in driving employee loyalty.

9 THE VALUE OF VOLUNTARY BENEFITS Voluntary benefits where employees pay 100% of the cost are growing in strategic importance across companies of all sizes. In fact, 62% of employers agree that employee-paid benefits will become a more important strategy in the next five years than they are today. 51% of employees are interested in a wider array of voluntary benefits that they can choose to purchase and pay for. Voluntary benefits are a way to address employees appetites for benefits that are more flexible and personalized and impact employer business objectives around employee loyalty and satisfaction.

10 MUCH MORE THAN JUST COST SHIFTING Employers see voluntary benefits as much more than just a solution to budgetary pressures citing a wide variety of rationales for offering voluntary benefits.

11 VOLUNTARY BENEFITS: TURN INSIGHTS INTO ACTION Encourage employee engagement Personalize enrollment, when possible Simplify communications Brand your benefits programs Promote voluntary benefits throughout the year Don t underestimate power of face-to-face consultations Find the benefits gaps Survey employees to assess needs Explore non-traditional voluntary benefits, such as: Critical illness, accident or hospital indemnity insurance Legal services Auto and Home insurance Long-term care

12 CONCERN CREATES GROWING DEPENDENCE ON EMPLOYEE BENEFITS 75% of employers recognize that potential holes in Social Security and Medicare safety nets will make employees increasingly look to their workplace for financial security help. Everyday financial concerns weigh on many employees, with 49% saying they are very concerned about having enough money to make ends meet. 50% of employees are concerned about outliving their retirement savings. Unforeseen financial events are also a concern.

13 FINANCIAL SECURITY SEEN AS AN EMPLOYER-EMPLOYEE PARTNERSHIP 32% of employers see employee financial security as a partnership one that couples individual savings with employer-provided benefits.

14 EMPLOYERS STAND TO GAIN FROM FINANCIAL WELLNESS PROGRAMS 22% of employees admit that they have taken unexpected time off in the past 12 months to deal with a financial issue and/or spent more time than they think they should at work on personal financial issues. Employers that support employees steps towards financial security can realize increased employee loyalty and productivity.

15 FINANCIAL WELLNESS: TURN INSIGHTS INTO ACTION Offer financial education to drive employee engagement Survey employees to identify diverse needs Provide access to credible financial professionals Use age-appropriate messaging to encourage participation Enable adequate income protection coverage Provide access to online tools and guides from providers Use enrollment reports to identify coverage gaps Reduce absences caused by family stress Leverage employee assistance programs Tap tax season to promote value of tax-deferred benefits Explore executive benefits options

16 THE RECESSION DEFINES A NEW GENERATIONAL OUTLOOK How old an individual was when the crisis hit, and where they were in their career, established a defining moment for when personal opportunity became blunted and a recognition for greater financial security was heightened. As a result, all generations of workers are turning more to their employers in their quest for financial security and protection. For younger employee generations, the recession has fueled a focus on workplace benefits to help achieve financial security at an earlier point in their life.

17 YOUNGER GENERATIONS MORE ENGAGED IN BENEFITS Generations X & Y appear to be more engaged and more dependent on employee benefits than older workers. Over 60% of Gen X and Y employees cite benefits as an important reason why they remain with their employer. 62% of younger workers are willing to bear more of the cost of their benefits rather than lose them.

18 APPLYING GENERATIONAL OUTLOOKS: TURN INSIGHTS INTO ACTION Tailor financial advice and guidance to needs of younger workers as well as older Explore education programs that offer advice on debt management, buying a home, or starting a savings plan Take younger generations preference for online delivery into account Remember that employee-paid benefits options drive loyalty among younger employees Address younger workers appetite for protection Talk about benefits in ways younger workers expect to communicate Deliver benefits information in short, easy-to-navigate formats Explore opportunities for dialogue using Twitter or a company blog forum Promote choices whenever possible to enable employees to customize their benefits programs

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20 Metropolitan Life Insurance Company (MLIC), New York, NY Financial planning services are offered by qualified financial planners of MetLife Securities Inc.(MSI) (member FINRA/SIPC), a registered investment advisor. MLIC and MSI are MetLife companies. MetLife does not provide tax or legal advice. Please consult with your own tax or legal advisors for such guidance. L [exp0413][CA] Financial Planning Division Wilshire Blvd., Suite 2100 Los Angeles, CA Phone: (310) Fax: (310) Metropolitan Peanuts 2012 Life Peanuts Insurance Worldwide Company, NY, NY