Companies in Latin America are looking to employee benefit programs to
increase employee productivity and attract and retain talent in a highly
competitive business environment, according to a new study released
today by MetLife, Inc. (NYSE: MET).
The MetLife Latin America Employee Benefits Trends Study (LatAm EBTS),
released today, surveyed employees and employers in Brazil, Chile and
Mexico to gain insights into employee loyalty, talent retention and
productivity. According to the study, a majority of employers in all
three countries – 99% in Mexico, 87% in Chile and 85% in Brazil – said
that offering benefits is tied to their efforts to increase employee
productivity. This is an increasingly important outcome as companies in
Latin America want to stay competitive with other emerging markets, an
ongoing challenge that cuts across the entire region.
Mindful of a tight labor market in Latin America, especially for skilled
workers, managers in Mexico (98%), Brazil (90%), and Chile (88%) agreed
that “increasing employee job satisfaction” is a top employer objective
for offering benefits. This marked a 7% increase for both Brazil and
Mexico since being surveyed in the 2011 MetLife International EBTS,
highlighting the growing need to attract and retain talent. And
employees agree that benefits are critical for job satisfaction – among
employees with benefits, 80% of Chileans, 79% of Mexicans and 57% of
Brazilians said they were satisfied with their job. This drops an
average of 15% among employees in both Chile and Mexico who do not
receive employer-paid benefits.
“Local, multilatina and multinational employers in Latin America face a
competitive environment where success is dependent upon maximizing
worker productivity, winning the war for talent, and retaining
valued employees,” said Maria Morris, executive vice president, Global
Employee Benefits, MetLife. “Our study provides insights into the
strategies and goals of employers facing these demands, while at the
same time, highlights the growing concerns and expectations of workers
in Brazil, Chile and Mexico.”
MetLife’s LatAm EBTS also found that there is a strong correlation
between employees who are provided benefits and those employees who feel
“a strong sense of loyalty to my employer.” Eighty percent of Chilean
employees agreed with this statement, as did 72% of Brazilian and 70% of
Mexican employees. The study also found that loyalty drops an average of
20% among employees in both Chile and Mexico who do not receive
employer-paid benefits.
Potential Headwinds: Rising Costs and Expectations
As employers across Latin America look to leverage employee benefits as
a way to improve performance and attract and retain talent, companies
are facing potentially strong headwinds as they seek to balance the
rising cost of benefits and the growing expectations of their employees.
A large majority of companies surveyed said that controlling the cost of
health and welfare benefits is a top concern (94% in Mexico, 85% in
Chile and 82% in Brazil). This is an increase for both Mexico (87%) and
Brazil (78%) since the 2011 MetLife International EBTS.
At the same time, employees in Brazil, Chile and Mexico are grappling
with growing financial concerns and are looking to their employers for
help. Despite millions of Latin Americans achieving a middle class
standard of living¹, four in ten Chilean and Mexican workers, and three
in ten Brazilian workers, say they live “paycheck to paycheck.”
Employees in these three countries also reported that having enough
money to cover expenses during a sudden income loss (due to job loss,
disability or illness); having enough money to pay for their children’s
education or for good child care; having adequate healthcare; job
security; and outliving one’s money in retirement were all common
concerns.
“Markets in Latin America are continuing to develop, and companies
need to strike a balance between controlling benefit costs and meeting
the increased expectations of their workers in order to stay
competitive,” said Oscar Schmidt, executive vice president, Latin
America, MetLife. “Employees in Brazil, Chile and Mexico are looking to
their employers to provide them with robust benefit options and more
choice in voluntary benefits.”
It does appear that both companies and employees may find common ground
through voluntary benefits programs (where the employee pays all or part
of the benefit), the study found. More than half of companies surveyed
in Brazil, Chile and Mexico plan to add protection, health and financial
products as voluntary benefits in the next two years.
Employees in these countries are increasingly receptive to paying for
all, or part, of certain benefits to improve their lives. Half of
employees surveyed expressed an interest in a wider variety of voluntary
benefits options. Nearly half of Brazilian workers are interested in
adding to their retirement savings with a supplemental pension plan,
while life, accidental death and disability are of more interest to
Chileans and Mexicans.
Employees in all three countries also rate very highly the option to pay
for benefits via payroll deduction, which could lead to more discipline
around achieving savings goals.
The MetLife Latin America Employee Benefits Trends Study is the
third international edition of MetLife’s Employee Benefits Trends Study.
Mexico was included in both the 2007 and 2011 study and Brazil was
included in 2011. To download the 2013 MetLife Latin America Employee
Benefits Trends Study, please visit http://www.metlife.com/latamebts
¹ Source: Economic Mobility and the Rise of Latin American Middle
Class, The World Bank Report 2012
Methodology
The MetLife Latin America Employee Benefits Trends Study was
conducted from April to June 2013 by GfK. The employer survey was
comprised of 250 employers in Brazil, 250 employers in Chile and 200
employers in Mexico with 50+ employees. The employee sample was
comprised of 500 employees in Brazil, 301 employees in Chile, and 434
employees in Mexico. The targeted sample for each country was designed
to appropriately represent the full-time employee population base.
Results were obtained through face-to-face, telephone and online
interviews.
About GfK
GfK is one of the world’s largest research companies, with more than
11,500 experts working to discover new insights into the way people
live, think and shop, in over 100 markets, every day. GfK is constantly
innovating and using the latest technologies and the smartest
methodologies to give its clients the clearest understanding of the most
important people in the world: their customers.
About MetLife
MetLife, Inc. is a leading global provider of insurance, annuities and
employee benefit programs, serving 90 million customers. Through its
subsidiaries and affiliates, MetLife holds leading market positions in
the United States, Japan, Latin America, Asia, Europe and the Middle
East. For more information, visit www.metlife.com.
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