STUDY OF EMPLOYEE BENEFITS: 2006 & BEYOND - Prudential

Welcome
The cost of employee benefits is an increasingly important factor affecting each company’s
finances. For many years, U.S. businesses have shouldered the responsibility of providing
employees with much needed financial products. But with healthcare costs continuing
to rise at often double-digit rates, many companies have been forced to find new ways
to support insurance and retirement benefits for current and retired employees.
Yet, despite these economic pressures, the results of this study show U.S. businesses
overwhelmingly view employee benefits as important in competing effectively in today’s
market place, particularly as a means to attract and retain talent. In fact, this study
suggests many plan sponsors are exploring new and innovative ways to better balance
cost containment objectives and maintain a competitive benefits program.
At Prudential, we remain committed to helping companies meet this challenge by providing
affordable group insurance solutions that protect the financial security of employees and
their families—in 2006 and beyond.
Vivian Banta
Vice Chair, Prudential Financial
Our recent research yielded significant insight into the employee benefits marketplace of
the next five years—and we’d like to share it with you.
Of particular interest, we learned about a small but growing segment of plan sponsors
we’ve called “The Progressives” because of their more strategic approach to addressing
benefits challenges. Progressive firms focus on programs that manage risk rather than
chase costs, such as wellness and prevention, disease state management, mental health
counseling, and work/life balance initiatives. Progressive plan sponsors seek to align their
valuable benefits dollars with the financial needs and wants of their employees. Their
benefits programs are designed not only to attract and retain valued employees, but
also help to improve the overall financial security of their workforce.
I hope you’ll find this information helpful as you consider your company’s benefits
strategy now and in the coming years.
Ed Baird
President, Prudential’s Group Insurance
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