STUDY OF EMPLOYEE BENEFITS: 2006 & BEYOND - Prudential

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Positive Online Outlook Adoption Rates for Web Technology Vary Most firms (56%) are either trying to keep pace with technology or follow the market in adopting proven technologies. However, almost one-third (29%) believe their company is either “at the forefront” or “somewhat ahead” of other companies when it comes to adopting new technology. Financial services (19%) and other service industries (17%) are more likely to be early adopters of technology, likely because their industries use technology in so many areas of their businesses. Heavy industry and manufacturing is extremely competitive—more than half strive to stay ahead of or equal to their market competitors. The sales/trade industry is least willing to be early adopters of new technology. Providing technology for commission-based and geographically dispersed sales associates is challenging and benefits providers need to consider how to better meet this need. Adoption of online technology is highly correlated to company size. Over 50% of employers with 5,000 – 10,000 employees consider themselves ahead of the market when it comes to adopting new technologies. Four in ten employers (41%) take a “wait and see” approach and either rely on legacy technologies or adopt new technologies only after they have proven effective. PLAN SPONSOR WILLINGNESS TO ADOPT NEW TECHNOLOGY BY INDUSTRY 13% 3% 4% 9% 19% 17% 16% 20% 20% 8% 20% 14% 30% 31% 34% 16% 34% 32% 28% 29% 26% 39% 20% 26% 13% 13% 12% 23% 6% 9% At the Forefront of technology Somewhat Ahead of the market in adopting new technologies Keep Pace with the market in adapting new technologies Tend to Follow the market and only adopt proven technologies Rely on Legacy technologies 26 All Employers Heavy Industry Manufacturing Sales/Trade Financial/Ins/Real Estate Services % of Total Sample: 13% 16% 30% 28% 13%
Plan Sponsors Want Enhanced Performance from Online Tools Despite great progress, the potential value of online technology has yet to be fully realized. Most plan sponsors feel that current online tools have not adequately met their expectations regarding cost/time savings, data quality, and convenience. When asked to compare the importance of various online tools with the actual performance, the largest gaps were in: ■ ■ ■ ■ Reducing costs Allowing HR staff to focus on strategic initiatives Improving the quality of information available to employees Reducing errors Employers have issues with the quality of the information provided online, saying it is too general (not personalized), not available 24/7, and not current. In addition, employers saw no reduction in time spent on plan administration by benefit administrators. Carriers should strive to offer enhanced services designed to match user needs, better training, increased user support, and greater “proof” of system effectiveness. IMPACT <strong>OF</strong> WEB TECHNOLOGY IN <strong>BENEFITS</strong> ADMINISTRATION High performance High importance Delivery Shortfall Reduce costs 24% 63% -39 Enable HR to focus on strategic initiatives 21% 53% -32 Improve quality of info for employees 33% 62% -29 Reduce errors 34% 63% -29 Personalized employee info 26% 52% -26 More up-to-date info 36% 60% -24 Access 24/7 33% 55% -22 27
Page 1 and 2: PRUDENTIAL’S GROUP INSURANCE STUD
Page 3 and 4: Welcome The cost of employee benefi
Page 5 and 6: Methodology This study surveyed a b
Page 7 and 8: Benefits Matter Eight in Ten Plan S
Page 9 and 10: Commitment to Benefits Spans Most C
Page 11 and 12: Benefits Decision Making Is Increas
Page 13 and 14: The Gap Among Top Financial Concern
Page 15 and 16: Voluntary Benefits on the Rise, But
Page 17 and 18: Most Plan Sponsors Do Not Require C
Page 19 and 20: Plan Sponsors and Participants Are
Page 21 and 22: Employee Concerns Extend Beyond Fin
Page 23 and 24: Interest in Lifestyle Benefits Vari
Page 25 and 26: Positive Online Outlook Online Tool
Page 27: Web Technology is Empowering Employ
Page 31 and 32: Criteria for Progressive Plan Spons
Page 33 and 34: Progressives Are More In Sync with
Page 35 and 36: Progressives Also Outpace Other Com
Page 37: Progressive Employers Value Persona
Page 40 and 41: Summary of Key Findings Theme One:
Page 42: About Prudential Financial Currentl

STUDY OF EMPLOYEE BENEFITS: 2006 & BEYOND - Prudential

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