STUDY OF EMPLOYEE BENEFITS: 2006 & BEYOND - Prudential
STUDY OF EMPLOYEE BENEFITS: 2006 & BEYOND - Prudential
STUDY OF EMPLOYEE BENEFITS: 2006 & BEYOND - Prudential
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Summary of Key Findings<br />
Theme One: Benefits Matter<br />
Eight in Ten Plan Sponsors Remain Committed to Offering Competitive Benefits Programs<br />
An unexpected finding, considering recent press coverage on benefits cutbacks,<br />
suggests that plan sponsor commitment to offering a competitive employee benefits<br />
package remains quite strong—even in a challenging economic environment. This trend<br />
is true among companies of all size categories, but particularly for larger firms. As plan<br />
sponsors look to balance employee needs with the bottom line, many will reduce their<br />
benefits expenses by increasing employee cost-sharing on contributory plans, offering a<br />
wider range of voluntary benefits, and introducing more flexible plan designs. To further<br />
reign in costs, finance and procurement are increasingly influential in benefits decisions<br />
in larger companies, where the decision process is becoming more complex.<br />
Theme Two: Teach Them Well<br />
Employees Want Greater Support in Understanding and Using Their Financial Benefits<br />
This research highlights gaps between employees’ greatest financial and lifestyle<br />
concerns and employer priorities in terms of addressing those needs. However, many<br />
plan sponsors want to do more and expect to do so in the next five years, to better<br />
meet their employees’ needs. As consumers rely on the workplace for a growing share<br />
of their insurance and savings products, effective benefits communication and education<br />
are becoming more essential. However, many plan sponsors agree that their current<br />
education/communication efforts are lacking, particularly for benefits such as group life,<br />
disability, and long-term care insurance. Over the next five years, more employers will be<br />
tailoring benefits offerings as well as personalizing benefits communications to better<br />
address the diverse needs and life stages of their changing workforce.<br />
Theme Three: Lifestyle Benefits Offer Win/Win Solution<br />
Healthy Lifestyle Emerges as a Holistic Desire for Employees and a Cost-Reduction<br />
Strategy for Employers<br />
As the lines continue to blur between their work and personal lives, employees are feeling<br />
stressed and desire better balance in their lives. A more balanced, healthier lifestyle is<br />
an aspiration for many workers and increasingly, they are turning to their employers for<br />
help in the form of flexible work arrangements and paid time off policies. But lifestyle<br />
issues are equally important for plan sponsors because a healthier workforce leads to<br />
lower medical and disability costs, as well as improved morale and productivity. As more<br />
employers see value in offering employee assistance programs, wellness programs,<br />
disease management, and mental health counseling, access to such plans is expected<br />
to grow significantly by 2010.<br />
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