Findings from the 9 th Annual MetLife S tudy of Employee Benefits Trends A Blueprint for the New Benefits Economy

Transcription

1 UFS Findings from the 9 th Annual MetLife S tudy of Employee Benefits Trends A Blueprint for the New Benefits Economy Ronald Leopold, MD, MBA, MPH National Medical Director, Vice President MetLife U.S. Business March 28, 2011

2 Agenda CRACKS IN THE FOUNDATION: Erosion of Employee Loyalty May Mean Retention at Risk REINFORCING BENEFITS STRUCTURE: Flexibility, Choice and Customization Reflect New Workforce and Economic Realities REMODELING THE BENEFITS AND RETIREMENT SPACE: Fresh Perspectives on Familiar Solutions PRESERVING EQUITY IN BENEFITS: Scenarios for the Era of Health Care Reform Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L [exp0512][All States] 2

3 The Study OBJECTIVE: To gain insight into current and future issues that impact employer and employee benefits needs. Employer Sample: 1,508 benefits decision makers Companies with at least 2 employees Mix of industries and geographic regions Employee Sample: 1,412 full-time employees Employed at companies with at least two employees Age 21 and over Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L [exp0512][All States] 3

4 Section 1 Cracks in the Foundation Erosion of Employee Loyalty May Mean Retention at Risk. Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L [exp0512][All States] 4

5 Flight risk with economic recovery Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L [exp0512][All States] 5

6 Employee loyalty is not recession-proof Decline in employee loyalty year over year, and that loyalty has now reached a three-year low Yet, employers seem unaware of this downward trend Employees perceive less loyalty from their employers than the year before, but each year employers assume an unwavering perception of loyalty The widening loyalty gap is a sign that employers may be taking employee retention for granted Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L [exp0512][All States] 6

7 Over two years of high unemployment rates Because of the market I don t think we re as concerned with employee job satisfaction. Because you can get the same employee without all the bells and whistles. - HR Professional (1,000-3,000 employees), Chicago July 2010 Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L [exp0512][All States] 7

8 Employee loyalty is in decline Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L [exp0512][All States] 8

9 Employers are most focused on cost Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L [exp0512][All States] 9

10 Driving employee satisfaction has lower priority Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L [exp0512][All States] 10

11 Employees who plan to leave are more likely to report greater job insecurity and increased workloads Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L [exp0512][All States] 11

12 Job satisfaction and loyalty measures are on the decline Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L [exp0512][All States] 12

13 Benefits continue to attract and retain employees Employees Employees 60% 49% The employee benefits offered to me are an important reason why I remain with my employer The employee benefits offered to me were an important reason why I came to work for this company Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L [exp0512][All States] 13

14 Employees who are satisfied with benefits are more likely to be loyal and satisfied with their jobs Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L [exp0512][All States] 14

15 Disconnect: Factors considered extremely important to loyalty Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L [exp0512][All States] 15

16 Section 2 Reinforcing Benefits Structure Flexibility, Choice and Customization Reflect New Workforce and Economic Realities. Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L [exp0512][All States] 16

17 One-size-fits-all will no longer cut it A one-size-fits-all benefits package is a thing of the past. Instead, employers should consider choice, flexibility and customization to engage an increasingly diverse workplace. I think that employees certainly are looking to have a lot more choices and have a lot more control. - HR Professional (11-99 employees), Chicago July 2010 Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L [exp0512][All States] 17

18 There are significant generational differences Financially unprepared for retirement Threat to productivity Less satisfied with their benefits Anxious to leave Older Boomers (Age 55 65) Younger Boomers (Age 45 54) Gen X (Age 30-45) Gen Y (Age 21 29) Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L [exp0512][All States] 18

19 Employees see choice, cost and convenience advantages in voluntary benefits Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L [exp0512][All States] 19

20 Employees are willing to pay to personalize Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L [exp0512][All States] 20

21 Employers may not fully recognize the value of voluntary benefits 52% EMPLOYEES I am interested in a wider array of voluntary benefits that I can choose and pay for on my own EMPLOYERS 32% Voluntary Benefits are a significant part of our company s benefits strategy. Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L [exp0512][All States] 21

22 Benefits communications pays off in employee loyalty Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L [exp0512][All States] 22

23 If a tree falls in the forest An employee came up to my office and said, I need to get glasses. Why don t we have vision coverage? And I said, We do. You know this is an employee that s been with us five years. - HR Professional (4,000+ employees) San Francisco, July 2010 Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L [exp0512][All States] 23

24 Employers get 30 minutes to tell their benefits story Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L [exp0512][All States] 24

25 Some hesitancy in incorporating social media Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L [exp0512][All States] 25

26 Section 3 Remodeling the Benefits and Retirement Space Fresh Perspectives on Familiar Solutions. Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L [exp0512][All States] 26

27 Wellness programs have increased over the past three years Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L [exp0512][All States] 27

28 Financial illness is linked to physical illness Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L [exp0512][All States] 28

29 Financial stress impacts worker productivity PRESENTEEISM ABSENTEEISM 78% 58% Of employers say employees are less productive while at work at our company when they are worried about personal financial problems Of employers say that financial stress contributes to employee absences at our company Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L [exp0512][All States] 29

30 Robust interest in financial wellness Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L [exp0512][All States] 30

31 Growing interest in financial advice and guidance at work ALL EMPLOYEES 52% are interested in advice & guidance EMPLOYEES WHO HAVE TAKEN TIME OFF OF WORK OR SPENT MORE TIME THINKING ABOUT PERSONAL FINANCIAL ISSUES 81% are interested in advice & guidance Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L [exp0512][All States] 31

32 Employees who own life and disability coverage worry less about financial issues Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L [exp0512][All States] 32

33 Concerns about retirement are felt across the board- Younger Boomers are most worried Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L [exp0512][All States] 33

34 Employees are behind in saving for retirement Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L [exp0512][All States] 34

35 Over a third of employees are counting on Social Security for ALL or a major portion of their retirement income Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L [exp0512][All States] 35

36 Section 4 Preserving Equity in Benefits Scenarios for the Era of Health Care Reform. Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L [exp0512][All States] 36

37 More employers are reducing health plan coverages Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L [exp0512][All States] 37

38 Many employers are already shifting health care costs Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L [exp0512][All States] 38

39 Many small companies have not planned their response to health care reform Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L [exp0512][All States] 39

40 Playing in the new Pay vs Play ballgame? Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L [exp0512][All States] 40

41 A shift in how employers look at medical benefits I think medical benefits will become a commodity. Either we re going to offer the same or we re going to offer nothing and so you ll need something to differentiate your company. - HR Professional (4,000+ employees) Chicago, July 2010 Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L [exp0512][All States] 41

42 Non-Medical Benefits will become more important in 5 years? Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L [exp0512][All States] 42

43 Retirement offerings will become a more significant strategy Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L [exp0512][All States] 43

44 Seven things you can do Know what drives loyalty Voluntary benefits Benefits communications Generational Differences Add a financial aspect to wellness Protect Income Prepare for the future Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L [exp0512][All States] 44

45 Other Tools and Resources Visit MetLife s Center for Workplace Benefits on MetLife.com for more employee benefits thought leadership. MetLife Benefits Benchmarking Tool Building a Better Benefits Program Without Breaking the Budget: Five Practical Steps Every Small Business Should Consider The Benefits Edge Book Enrollment Toolbox MetLife Financial Impact Series MetLife U.S. Pension Risk Behavior Index sm The Study of the American Dream MetLife Survey of the American Teacher The MetLife Retirement Readiness Index Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L [exp0512][All States] 45

46 Methodology Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L [exp0512][All States] 46

47 Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L [exp0512][All States] 47