Aon Consulting PEO Survey. Communicating with Worksite Employees

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1 Aon Consulting 2010 PEO Survey Communicating with Worksite Employees

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3 2010 PEO Survey Communicating with Worksite Employees Contents Overview Key Findings Call to Action Data

4 Overview In April-May 2010, Aon Consulting conducted a survey of Professional Employer Organizations (PEOs) through LinkedIn and the National Association of Professional Employer Organizations. A total of 69 PEOs completed the 14-question survey. The majority of PEOs (65.2%) serve more than 100 employer clients. In terms of size, 89.8% of PEOs have clients with an average of fewer than 50 employees, with the majority (56.5%) serving clients in the employee range. Key Findings Mix of Print and Electronic for Communicating with Worksite Employees The findings show that employers use a mix of print and electronic communications for their HR and benefits information and open enrollment communications. When PEOs communicate with worksite employees about HR and benefits issues, they more commonly use electronic distribution rather than print. Of respondents, 75.4% use either entirely electronic or e-delivery at least half of the time. However, for annual open enrollment, 20.3% use online enrollment for their employee communications and/or for processing elections. HR Benefits Information For HR benefits information, 37.7% use a majority of electronic communications and some print communications, followed by half electronic/half print communications (29%). Another 8.7% use all electronic communications. All Print 2.9% All Electronic (online and/or ) 8.7% Majority Electronic, Some Print 37.7% Half Electronic, Half Print 29% Majority Print and Some Electronic 21.7% 4 Aon Consulting

5 Open Enrollment Communications In terms of open enrollment communications and processing employee elections, 31.9% of respondents mail worksite employees a printed instruction guide, highlights, and/or personalized worksheet. (Employees then return completed forms for processing or call a service center to make their elections.) The second most popular method is providing materials to client employers, who in turn distribute them to employees (21.7%). In all, 79.7% use some type of print materials as a component of their open enrollment communications. Mail printed instruction guide, highlights, and/or personalized worksheet. Employees fill out forms and return for processing or call service center to make elections. 31.9% Mail a printed instruction guide, highlights, and/or personalized worksheet for planning. Employees go online to our enrollment site to submit their elections. 10.1% Mail a printed generic enrollment announcement. Employees go online to our enrollment site to read instructions and submit their elections. 15.9% a notice containing enrollment instructions. Employees go online to submit their elections at our enrollment site. 20.3% Enrollment materials are provided to client employers and they distribute them to their employees. 21.7% 2010 PEO Survey Communicating with Worksite Employees 5

6 Mix of Change Strategies to Improve Communications Employers cited a number of changes they would make to their communications strategies to help their business be more efficient and competitive. n 52.2% would opt for providing streamlined communications that are more concise and easy to understand n 20.3% would use more personalized information and fewer generic communications n 17.4% would communicate more frequently on key topics like wellness or retirement planning The Move to Electronic Communications PEOs expressed a desire to move away from print communication with their worksite employees. The majority (63.8%) plan to eliminate paper-based communications some time within the next five years. Of those, 26.1% are committed to online/electronic communication in In addition, another 17.4% have already gone paperless, while 18.8% have no plans to eliminate print in the future. Going paperless appeared to be motivated by a desire to control expenses (58%). Another 50.9% said it is easier and more cost-effective to update electronic information than printed materials. Pros and Cons of Print Communications Employers have strong reasons for keeping print communications but also state challenges for continuing to use them. Many have resolved to stay with print communication for their open enrollment communications. The top two reasons cited for keeping some component of print communication: n 64.6% note that worksite employees don t have regular online access n 21.4% say that clients (or their employees) are more comfortable with print The top two challenges cited for providing print communications are: n 48.4% say that print is costly to produce and distribute n 30.6% say that materials become obsolete quickly and have to be replaced 6 Aon Consulting

7 The Role of Outsourcing Of respondents, 53.6% do all of their worksite communications in-house. Of those who outsource some components of their worksite communications, they most commonly outsource print production and fulfillment (37.7%) and content development (14.5%), followed by online enrollment (10.1%). The Role of Social Media The use of social media is mixed among respondents. Currently 37.7% of respondents use some social media/web 2.0 tools and plan to expand their use in the future, while another 27.5% do not use social media tools and have no plans to do so. Of those using social media tools, LinkedIn is the top tool (42%), followed by Facebook (36.2%) PEO Survey Communicating with Worksite Employees 7

8 Call to Action Communications need to be fully integrated into the PEO s business process. This includes allowing adequate preparation time, crafting the materials, scheduling communication distribution events, and establishing effective methods for delivery. These are the missing links. How organizations communicate with participants reflects on both their brand and business image. Communications to clients and worksite employees are the recognizable face of the PEO. They help set the tone of the work experience and leave a lasting impression. Accordingly, the quality of the communications should match the quality of the services provided. PEOs expressed concerns about the overall accuracy of their printed materials. They believe that having more streamlined communications would give them a competitive advantage. When employees receive large quantities of generic information, they must spend time and effort to sort through the details they need. Streamlined and/or customized communications are more user-friendly and would allow them to make decisions and take action more quickly. Social media offers new outlets to support more traditional communication channels. While social media will not take the place of existing methods in the short run, these tools can be leveraged to reinforce messages to employees. For example, PEOs can use social media to remind employees that open enrollment is under way or alert them to check their s for timely information. For the time being, employers will keep a mix of print and electronic communications. We don t expect that to change any time soon. The goal will be for PEOs to find ways to keep production costs down and improve accuracy. For more information, please contact: Robyn Costello robyn.costello@aon.com. One of the top challenges in providing print communication is lack of internal resources, yet 53.6% of PEO respondents do not outsource their communication work. Since print and fulfillment are outside of PEOs typical service offerings, niche partnership arrangements are worth exploring to deliver these services. The cost may well turn out to be neutral, and in fact, may ultimately provide cost savings. With a pre-defined plan and schedule in place, and high-quality materials ready in advance, PEOs can ensure cost-effective, quality results with a minimum of time and effort, while improving overall branding. 8 Aon Consulting

9 2010 PEO Survey Data

10 1 How many employer clients do you serve? Employer Clients Response Percent Fewer than % Between 25 and % Between 50 and % Between 100 and % More than % 2 What is the average number of worksite employees per client that you serve? Average Number of Worksite Employees per Client Fewer than 10 employees 7.2% Response Percent Between 10 and 25 employees 56.5% Between 26 and 50 employees 26.1% Between 51 and 100 employees 5.8% More than 100 employees 4.3% 3 How do you provide HR and benefits information to worksite employees? Information Provided All electronic (online and/or ) 8.7% Response Percent Majority electronic, some print 37.7% Half electronic, half print 29.0% Majority print and some electronic 21.7% All print 2.9% 10 Aon Consulting

11 4 How do you handle annual open enrollment communication and processing employee elections? Please indicate the method you use most commonly. Method Most Commonly Used Mail printed instruction guide, highlights, and/or personalized worksheet. Employees fill out forms and return for processing or call service center to make elections. Mail a printed instruction guide, highlights, and/or personalized worksheet for planning. Employees go online to our enrollment site to submit their elections. Response Percent 31.9% 10.1% Mail a printed generic enrollment announcement. Employees go online to our enrollment site to read instructions and submit their elections. 15.9% a notice containing enrollment instructions. Employees go online to submit their elections at our enrollment site. 20.3% Enrollment materials are provided to client employers and they distribute them to their employees. 21.7% 5 What are your plans to go paperless with your communications to worksite employees? Plans All of our communications are already online or electronic. We are moving all communications to online/electronic in Response Percent 17.4% 26.1% We plan to go paperless in the next 3-5 years. 37.7% We plan to go paperless in more than 5 years. 0.0% We have no plans to eliminate print communications in the future. 18.8% 2010 PEO Survey Communicating with Worksite Employees 11

12 6 If your organization uses paperless communications or if you are considering paperless, why? Please rank your top 3 reasons, 1 being most important, or choose N/A. Reasons N/A Reduce expenses. 58.0% 18.0% 18.0% 6.0% Good for the environment, or supports an organizational initiative for going green. Client employers have requested paperless communications. Easier and more cost effective to update information than printed materials. Requires fewer internal resources to produce. Less potential for errors in the information we provide. Allows us to distribute information on a timelier basis. 21.4% 23.8% 35.7% 19.0% 17.4% 19.6% 39.1% 23.9% 50.9% 26.4% 15.1% 7.5% 31.3% 35.4% 22.9% 10.4% 36.4% 29.5% 22.7% 11.4% 37.0% 29.6% 20.4% 13.0% 12 Aon Consulting

13 7 If you have converted your communications to online/electronic, how have worksite employees behaviors changed? Behavior Changes We are receiving more calls to our service center. We are receiving fewer calls to our service center. Response Percent 2.9% 10.1% Employees are making fewer errors when they enroll or provide information back to us. 29.0% Employees are making more errors when they enroll or provide information back to us. 1.4% No noticeable change one way or the other. 20.3% We have not converted to online/ electronic communications. 36.2% 2010 PEO Survey Communicating with Worksite Employees 13

14 8 If you are keeping some component of print communications, why? Please rank your top 3 reasons, 1 being most important, or choose N/A. Reasons N/A Our worksite employees don t have regular online access. 64.6% 13.8% 4.6% 16.9% With print we know employees receive our messages. Print ensures that employees spouses and families will see the information. Our clients (or their employees) are more comfortable with print. 10.9% 21.7% 30.4% 37.0% 13.0% 28.3% 23.9% 34.8% 21.4% 44.6% 16.1% 17.9% Print is cost effective for our purposes. 2.8% 11.1% 33.3% 52.8% Online/electronic communications are too expensive. Not enough resources to maintain online/electronic communications. 2.9% 8.6% 28.6% 60.0% 5.6% 13.9% 30.6% 50.0% 14 Aon Consulting

15 9 If you use print, what challenges do you face in providing print communications in 2010? Please rank your top 3 reasons, 1 being most important, or choose N/A. Lack of internal resources to prepare the materials. Reasons N/A 14.3% 26.5% 32.7% 26.5% Print is costly to produce and distribute. 48.4% 21.0% 12.9% 17.7% Materials become obsolete quickly and have to be replaced. Materials tend to have accuracy problems. 30.6% 37.1% 11.3% 21.0% 11.8% 14.7% 32.4% 41.2% Getting materials out on time. 19.6% 33.3% 27.5% 19.6% We don t face any challenges. 12.1% 3.0% 12.1% 72.7% 10 How are you using social media/web 2.0 to communicate with worksite employees? (Twitter, Facebook, LinkedIn, blogs, text messaging, etc.) Social Media and Web 2.0 Usage We currently use some social media/ Web 2.0 tools and plan to expand in the future. Response Percent 37.7% We currently use some social media/ Web 2.0 tools but have no plans to expand in the future. 10.1% We do not use social media tools now, but are considering this type of communication for the future. 24.6% We do not use social media tools now and have no plans to use them in the future. 27.5% 2010 PEO Survey Communicating with Worksite Employees 15

16 11 If you offer some type of social media/web 2.0, please check the tools you use to communicate with worksite employees. Check all that apply. Social Media/Web 2.0 Tools Used Response Percent LinkedIn 42.0% Twitter 27.5% Facebook 36.2% Company-sponsored blogs 29.0% Text messaging 5.8% N/A 46.4% 12 Which of the following statements reflects your organization s opinion on using social media tools to communicate with worksite employees? Choose one. Opinion Social media tools are an effective way to reach worksite employees in their environment or on the go. Social media tools are an effective way to reach worksite employees in addition to other traditional communication channels (such as printed materials). Response Percent 14.5% 31.9% Social media tools are not effective since they do not directly reach dependents. 7.2% Social media tools are not effective since they are too frivolous for our subject matter. 7.2% Our organization has not used social media tools enough to have an opinion. 39.1% 16 Aon Consulting

17 13 What components of worksite employee communications do you outsource? Check all that apply. Outsourced Components Content development (writing, design, technical review, etc.). Response Percent 14.5% Online enrollment. 10.1% Print production and fulfillment. 37.7% All of our worksite employee communications are handled by a vendor/partner. 2.9% None of our worksite employee communications are outsourced; we do it all in house. 53.6% 14 What changes to your worksite communication strategy or methods do you think would make your business more efficient and competitive in 2010? Changes Using more personalized information and fewer generic communications. Providing streamlined communications that are more concise and easy to understand. Response Percent 20.3% 52.2% Providing total compensation statements to worksite employees. 7.2% Using social media tools. 2.9% More frequent communications on relevant topics such as wellness programs or planning for retirement. 17.4% 2010 PEO Survey Communicating with Worksite Employees 17

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19 About Benefacts Aon Consulting s Benefacts service is based in Owings Mills, Maryland, with more than 60 professionals including communication consultants, project managers and graphic designers. With 45 years of experience, we develop and implement worksite employee communications that meet a broad range of PEO communication needs. We maintain our own state-of-the-art, commercial production and finishing facility. Our own team members, who are experienced in the exacting details and requirements of preparing worksite employee communications, operate this facility. By maintaining this resource in-house, we can ensure your confidentiality, provide quality control, and offer flexible scheduling.

20 Aon Consulting Aon Consulting is among the top global human capital consulting firms, with more than 6,300 professionals in 229 offices worldwide. The firm works with organizations to improve business performance and shape the workplace of the future through employee benefits, talent management and rewards strategies and solutions. Aon Consulting was named the best employee benefit consulting firm by the readers of Business Insurance magazine in 2006, 2007, 2008 and For more information on Aon Consulting, please visit Copyright Aon Consulting 2010