MetLife’s 12th Annual U.S. Employee Benefit Trends Study, released
today, reveals that employee satisfaction with benefits reached 50% in
2013 – the highest level since the Study began over a decade ago. A full
report examining these findings is available by visiting
BenefitTrends.MetLife.com.
“Employees who are very satisfied with their benefits are more than
twice as likely to report being very satisfied with their jobs. Because
of this, offering a wider variety of benefits pays dividends for both
employers and employees,” said Todd Katz, executive vice president,
Group, Voluntary & Worksite Benefits, at MetLife. “The Study takes this
even further, showing that benefits are a strong driver for employee
loyalty—44% of employees say that having benefits customized to meet
their needs would increase their loyalty.”
In addition, the research shows the ability to personalize benefits
selections appeals to employees. Over three quarters (78%) of employees
want a greater variety of benefits to choose from and 80% would value
benefits customized to individual circumstances and age. And, more than
ever, employees are ready to share responsibility for this variety: 60%
are willing to bear more of the cost in order to have a choice of
benefits that meet their needs.
Despite this heightened employee satisfaction, the Study also found a
surprising dip in the number of companies that agree with the statement,
“voluntary benefits are a significant part of our company’s benefits
strategy,” ending a rising trend seen over the past three years. In
2012, 58% percent of employers cited voluntary benefits as a significant
part of their strategy. This number dropped to 50% in 2013.
“This shift in employer focus is somewhat unexpected. But, rather than a
change in strategy, this is likely a result of employers being consumed
by health care reform and cost control challenges,” noted Katz. “The
employee satisfaction numbers make it clear that voluntary benefit
strategies are paying off for employers and that attention should not be
shifted from existing plans. Changing course now may have negative
effects on loyalty and productivity in the future.”
This is especially true since retention continues to be a priority, with
87% of employers reporting that this is a very important benefits
objective. Equally critical is managing benefit budgets, with 88% citing
cost control as a very important benefits objective and 80% reporting
that optimizing benefits plans to reduce costs is a most important
strategy. When making benefits decisions, nearly three-quarters (74%) of
employers claim cost is an important consideration.
However, cost control and retention objectives do not need to be at
odds—voluntary benefits allow employers to offer a wider variety of
benefits, addressing employees’ desire for greater choice, without
impacting benefits budgets. This is good news to over half of employers,
54%, who plan on maintaining the same benefits budget.
“Results from the Study support the value of voluntary benefits and
their role in helping businesses meet their objectives,” stated Katz.
“The Study found that 40% of employees are looking to their employer for
more help in achieving financial security through employee benefits.
This is up from 29% last year and illustrates the important role
voluntary benefits can play in an overall benefits strategy.”
To learn more about how employers and employees are navigating a
changing benefits environment, including more details on employer and
employee loyalty perceptions, cost barriers and the need for financial
education, access MetLife’s 12th Annual U.S. Employee
Benefit Trends Study by visiting BenefitTrends.MetLife.com.
Research Methodology
MetLife’s 12th Annual U.S. Employee Benefit Trends Study
was conducted during October and November of 2013 and consisted of three
distinct studies fielded by GfK Custom Research North America. The
employer survey comprised 1,510 interviews with benefits decision-makers
at companies with staff sizes of at least two employees. The employees
survey comprised 1,203 interviews with full-time employees age 21 and
over, at companies with a minimum of two employees. The broker survey
comprised 524 interviews with brokers and consultants who sell group
employee benefits to companies of all sizes.
About GfK
GfK is one of the world’s largest research companies with more than
13,000 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. In 2012, GfK’s sales
amounted to €1.51 billion. To find out more, visit www.gfk.com.
About MetLife
MetLife, Inc. (NYSE: MET), through its subsidiaries and affiliates
(“MetLife”), is a leading global provider of insurance, annuities and
employee benefit programs. 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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