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Employees=20
Appreciate
Benefits Even=20
=
More | =
Employees in this =
period of=20
economic and job insecurity are focusing on =
their job=20
and financial security. That's no =
surprise.
And it's no =
surprise that=20
employees =96 responding in research done for=20
MetLife's 7th Annual Employee Benefits =
Trends Study=20
=96 are also valuing even more their=20
employer-provided health insurance benefits, =
retirement=20
benefits, and other insurance benefits (such as =
life,=20
dental, disability, and vision).
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Employees, =
Employers=20
Differ |
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One third =
of employees=20
fear that employers may be reducing or =
cutting=20
benefits because of the lousy =
economy.
But, =
according to=20
responses from employers in the MetLife =
7th Annual=20
Employee Benefits Trends Study, only 12=20
percent of employers are considering =
reducing=20
benefits offered. And only 10 =
percent of=20
employers are considering shifting =
additional=20
costs to employees.
This =
difference between=20
employees and employers on what may happen =
to=20
employee benefits in the next 12 months =
points up=20
the need for employers to do better at=20
communicating about benefits to=20
employees.
This =
difference isn't=20
the only gap between how employees and =
employers=20
view and value benefits. Check out these=20
differences on how benefits influence =
employees'=20
loyalty to their employers:
On the =
importance of=20
salary and wages, 83 percent of =
employees say=20
they are important while only 69 =
percent of=20
employers say employees value them. On =
health=20
benefits, the difference is employees 75 =
percent,=20
employers 59 percent. On retirement =
benefits, its=20
employees 72 percent, employers =
40 percent .=20
On other insurance benefits, its employees =
69=20
percent, employers 41 percent. On =
advancement=20
opportunities, its employees 57 percent, =
employers=20
52 percent. On company culture, its =
employees 50=20
percent, employers 54=20
=
percent. |
What's surprising =
is that, to=20
some degree, employers responding in the =
research aren't=20
in sync with their employees.
The study finds =
that surveyed=20
employers and employees agree that salary, =
wages, and=20
health benefits are of high importance to =
cementing=20
employees' loyalty. But while employees place =
high=20
importance on retirement benefits and other =
insurance=20
benefits, employers place more importance on the =
company's culture and on employees' advancement=20
opportunities as ways to get and keep employees' =
loyalty.
The MetLife study =
involved=20
two separate sets of research interviews, one =
during=20
August and one during November 2008 among two =
distinct=20
groups of employees. The August survey =
interviews were=20
with 1,524 benefits decision-makers at companies =
with=20
two or more employees...and with 1,349 employees =
age 21=20
and over at companies with two or more =
employees. The=20
November survey interviews were with 569 =
employers and=20
627 employees at companies with two or more=20
employees.
Key =
Findings in=20
the Benefits Study. Following are the=20
significant findings in the MetLife study, as =
reported=20
in the Executive Summary:
Employees place a =
greater value=20
on their benefits, in this =
period of=20
stark economic realities.=20
Forty-one =
percent of=20
responding employees agreed with the statement =
"I=20
consider workplace benefits to be the foundation =
of my=20
financial safety net." The Executive =
Summary=20
states, "It is notable that when faced with new =
economic=20
realities, many employees place greater value on =
their=20
benefits and are expressing greater interest in=20
understanding the benefits offered by their =
employer.=20
Financial security, specifically retirement =
security, is=20
of significant concern to =
employees..."
Fifty-one percent =
of=20
employees responding obtain the majority of =
their=20
financial products through their =
workplace.
Also, in the =
MetLife=20
Study of the American Dream polling in =
January=20
2009, 68 percent of responding Americans said =
the=20
current economic gloom was causing them to make =
changes=20
involving their personal finances. In addition, =
93=20
percent of respondents already had started =
or were=20
planning to spend less and save more.
Employee retention =
remains=20
employers' most important objective in offering=20
benefits.=20
Retention =
and cost=20
control are top employer objectives for offering =
benefits. And employee productivity also is an =
important=20
objective. Here's how the employers and =
management-level=20
respondents supported various objectives of =
offering=20
benefits: Retain employees, 50 percent...control =
costs,=20
49 percent...increase productivity, 40=20
percent...increase job satisfaction, 32=20
percent...attract employees, 25 =
percent.
A gap exists between =
employer=20
and employee perceptions about=20
benefits.=20
While =
employers and=20
management view retention, cost control, and =
increased=20
productivity as major objectives of offering =
benefits,=20
employees' priorities are a bit =
different.
The =
Executive Summary=20
states: "...we continue to observe a gap in =
perceptions=20
between employees and employers regarding =
workplace=20
benefits. While surveyed employers realize =
benefits are=20
important, they may underestimate the degree to =
which=20
they are valued by employees."
The study's =
report=20
continues: "Now more than ever, employees value =
their=20
benefits. In fact, they value benefits even more =
keenly=20
in light of difficult economic times." Further, =
"The=20
state of the economy seems to have delivered a =
wake-up=20
call, creating renewed interest among employees =
not only=20
in having benefits but in understanding them." =
Six in 10=20
employees "indicate that current economic =
conditions=20
prompted them to review their needs for income =
in=20
retirement. This percentage is even higher for =
older=20
Baby Boomers [born between 1946 and 1955] (73 =
percent),=20
who may be facing the reality of delaying=20
retirement."
Benefits remain an =
important=20
factor in employees' loyalty to their=20
employer.=20
Which benefits =
are important=20
factors in employees' loyalty? Here's how =
employees=20
responded: Salary and wages, 83 percent...health =
benefits, 75 percent...retirement benefits, 72=20
percent...all other insurance benefits (such as =
life,=20
dental, disability, vision), 69 =
percent...advancement=20
opportunities, 57 percent...the company's =
culture, 50=20
percent. "In this challenging job market," the =
Summary=20
notes, "advancement opportunities and company =
culture=20
are less important than benefits."
In addition, =
one-third of the=20
responding employees "expressed concern that =
their=20
employers may reduce their benefits in response =
to=20
economic pressures."
Forty percent of =
employees say=20
benefits are important in their decisions about=20
remaining with the =
employer.=20
Further, of =
employees highly=20
satisfied with their benefits 73 =
percent report=20
they are also satisfied with their jobs. Of =
employees=20
not satisfied with their benefits, only 22=20
percent report they were satisfied with =
their=20
jobs.
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