Health and wellbeing benefits survey That s the world of Denplan for you.

Transcription

1 Health and wellbeing benefits survey 14 That s the world of Denplan for you.

2 About benefits About dentistry 1 Introduction - key facts On what basis are benefits chosen? 2-5 Health and wellbeing benefits offered to staff 6-1 Introduction - key facts 24 How UK adults access dental care Attitudes to dentistry About brokers Changes to benefit provision in Introduction - key facts 28 Assessing the value of benefits packages 12 Companies accessing brokers 29 Perceptions of broker services 3 Reviewing benefits portfolio in Benefits considered most valuable for recruitment, retention and employee wellbeing Factors affecting the choice of dental plan provider Attitudes to dental plans Importance of services provided by brokers Reasons for not using a broker 33 Company decision makers research This research is based on a Denplan survey among employee benefit decision makers in UK companies. The survey was carried out online between 14th January and 4th February 14 and was completed by 488 respondents. Samples were sourced through an online panel (Research Now). No weightings were applied to the survey results and so all figures quoted as companies means companies in this survey and cannot be taken as representative of all companies in the UK. Company views are representative of decision makers responses. Samples are unweighted and therefore are not comparable as like for like. Decision makers roles within the organisation 16 6 Finance Director CEO/Managing Director Number of employees in respondents organisation Small (-1 employees) HR Director/manager Other Medium (11-25 employees) Large (251+ employees) 3 Consumer and employee research A Denplan survey among UK consumers was conducted online by YouGov in January 14. Total sample size for the YouGov Plc. survey was 5,148 adults. Fieldwork was undertaken between 13th - 17th January 14. The survey was carried out online. The figures have been weighted and are representative of all UK adults (aged 18+). Last year s survey ran 14th - 23rd January 13, total sample size was 4,116 UK adults. Dental private fee charges Taken from Denplan s Supplementary Insurance Benefit Survey, conducted in January 14 online among Denplan member dentists.

3 Steve Gates Managing Director Denplan Steve joined Denplan in 1995 and in 1 became Managing Director. In this role he is responsible for the strategic direction and growth of all Denplan activities, along with the Denplan Board and other senior management team members. Steve focuses specifically on new products and business development, while maintaining close links with the dental profession. 1 Source: Denplan / YouGov survey, January 14. All employed where employer doesn t offer a dental plan. (N = 39) 2 Source: Denplan decision-makers survey January 14. All respondents. (N = 488) Introduction Welcome to the fifth edition of our annual survey based on attitudes towards health and wellbeing benefits. The aim of this survey was to identify which health and wellbeing benefits UK employers offer to their staff and how they are delivered. We also wanted to find out the impact benefits play on employee s attitudes, along with the challenges that are shaping them. In the pages that follow, we have brought together up-to-date information as told by key company decision makers, whose role it is to source and manage employee benefits. Some of the changes uncovered in this report appear to have been in response to the recovering economy, while others represent shifts that have gradually occurred over the last five years. It s clear that employee benefits remain a priority with over three quarters (78%) of companies offering health and wellbeing benefits. The dilemma for organisations remains how to offer the right mix of benefits to attract and retain staff while also balancing their increasing costs. We are sure this report will provide real value as you meet the needs of your audience in the year ahead. About the survey This report provides an analysis of the 14 Benefits Survey results. In January 14, Denplan conducted two surveys. The first one was in conjunction with YouGov - our annual consumer survey, to gather rich information on the employee benefits market and give insight into key trends. The second survey reveals insight and attitudes towards the benefits offered by surveying key corporate decision makers in a variety of small to large sized companies. 62 % 84 % 83 % 68 % Key facts of employees without a dental plan would consider one if their employer offered it 1 of employers with a dental plan believe that it helps keep their benefits package relevant for today s market 2 of employer with a dental plan believes that it enhances employee wellbeing 2 of employers with a dental plan believe that it helps to manage staff absenteeism 2 1

4 On what basis are benefits chosen? 42 % 3 Comparison with what other companies in the same industry offer Predictable cost 4 of companies say that enhancing employee wellbeing is a factor when choosing benefits Employee requests/demand 5 Something that will enhance employee wellbeing Something that will be regularly used by employees Value for money 6 Cost of benefit Factors considered important by employers Figure 1 Base: All decision makers Company decision makers were asked to rank each factor when selecting employee benefits. Value for money (51%) and cost (5%) remain the most influential factors on employers decision to choose an employee benefit. Other influences cited this year include enhancing their employee s wellbeing (42%) and listening to employee feedback (38%). Some factors have moved down on the priority list over the years including regularity of use, which has shown a 7% decline over the last three years to 31%. 2

5 The benefit covers me for unforeseen events and emergencies The benefit can be used regularly Cost We asked employees a similar question and found that their key priority was also focused around cost (83%) and value for money (83%) when considering the benefits offered to them. 1 However, three quarters (75%) of employees think it is important that a benefit can be used regularly. This highlights a noticeable difference between the factors considered important by employers and 8 employees. So while employees consider regularity of use as an important factor, their employers are not considering this factor as much when deciding which products to make available. 6 Value for money Factors considered important by employees Figure 1.1 Base: All employees who have access to benefits Factors considered important by employees (by company size) 6 4 The benefit covers me for unforeseen events and emergencies 8 The benefit can be used regularly Cost 1 Value for money 4 Small (-1 employees) Medium (11-25 employees) It s evident that there are a few notable differences when segmenting employee responses by company size. Employees from smaller companies are more likely to value costs (87%) than the employees from medium (81%) and large (83%) sized companies. Employees from medium sized company s responses show that the least important factor (67%) is choosing a benefits policy that will cover them for unforeseen events and emergencies, dropping 19% from last year. This is a far lower percentage than employees from small (78%) and large (74%) sized companies. Large (251+ employees) Figure 1.2 Base: All employees who have access to benefits For further information visit 3

6 Employees that would consider cancelling their benefits due to cost Dental plan PMI Health Cashplan Childcare Vouchers Gym Subsidy Cycle to Work Scheme Critical Illness/Payment Protection Employee Assistance Programme Health Screening Smoking Cessation Programme Figure 1.3 Base: All employees who have access to the respective benefits through work Cost has remained a key issue for employees since this survey was first conducted five years ago. We wanted to find out the extent of influence it can have on decisions and asked which benefits employees would cancel due to cost. Just over three fifths (61%) of respondents who have taken up the benefit said that they would consider cancelling their health cash plan due to cost consideration. 53% said cost would affect their decision to cancel their dental plan. 4

7 Change in factors influencing choice of benefits over the past 12 months Cost of benefit Value for money Something that will be regularly used by employees Employee requests/demand Predictable cost Comparison with what other companies in the same industry offer Less important Stayed the same More important Figure 1.4 Base: All decision makers Over the past 12 months, companies have continued to review their benefits package within an uncertain economic climate, alongside the business costs of complying with legislative changes, such as auto enrolment. In comparison to last year, cost of benefit and value for money steadily lowered in importance but remain an integral part of consideration. Decision makers are also less receptive to a benefit that will be used regularly with 1% rating it less important than last year. Other factors, including employee requests have gained importance over this period. For further information visit 5

8 Health and wellbeing benefits offered to staff 22 % of companies offer no health and wellbeing benefits at all Benefits offered by companies Encouragingly, the majority of decision makers (78%) reported their company offered at least some health and wellbeing benefits, with the range continuing to be varied. Health screening has jumped ahead of childcare vouchers this year, becoming the most popular benefit at 37%. Private medical insurance (PMI) has shown a marginal decline in the past 12 months dropping from 19% to 17%. In contrast, there has been a considerable rise in the proportion of respondents that offer a gym subsidy rising from 26% to 3%. Over a third (35%) of decision makers said they offered a dental plan to their staff, becoming the third most popular benefit selected Dental Plan PMI Health Cashplan Childcare Vouchers Gym Subsidy Critical Illness/Payment Protection Employee Assistance Programme Health Screening Smoking Cessation Programme Other (please specify) None Figure 1.5 Base: All decision makers 6

9 How companies communicate their benefits to staff Intranet site campaign Benefit book Desk drop Staff roadshows Other Total Small (-1 employees) Medium (11-25 employees) Large (251+ employees) Figure 1.6 Base: All decision makers It s clear that technology is affecting the way benefits are being delivered and communicated to staff across companies of all sizes. The results illustrate that technology based communications have all risen in importance. Intranet sites remain a vital tool to communicate the benefits to staff (45%). This is especially notable for large companies (71%). campaigns (44%) is the second most popular communication tool. With corporate social responsibility on the agenda, companies are relying more on electronic communication to save on paper usage and cost. For further information visit 7

10 Health and wellbeing benefits offered to staff (by company size) 51 % of large companies offer a dental plan to their employees Dental plan PMI Health Cashplan Childcare Vouchers Gym Subsidy Critical Illness/Payment Protection Employee Assistance Programme Health Screening Smoking Cessation Programme Other (please specify) None of the above Figure 1.7 Base: All decision makers Small (-1 employees) Medium (11-25 employees) Large (251+ employees) There is a strong correlation between the company size and the benefit offered to employees. Small companies are much less likely to offer benefits with only 57% arranging benefits schemes for their employees, compared with 95% of large companies. Over half (55%) of large companies offer childcare vouchers to their staff, compared with % of small companies. Over half of large companies (51%) offer a dental plan to their staff. For medium sized companies this has increased to 41%, which has doubled since the 13 response. 8

11 Employee take-up of health and wellbeing benefits PMI Dental Plan Health Cashplan Childcare Vouchers Gym Subsidy Cycle to Work Scheme Critical Illness/Payment Protection Employee Assistance Programme Health Screening Smoking Cessation Programme Take-up (overall) Take-up (at least partly employee-paid) Figure 1.8 Base: All employees who have access to the respective benefits through work Similarly to last year, PMI (65%) and critical illness (58%) remain the most popular benefits to be taken up when offered to employees. It s clear that employees are, however, more receptive to PMI when they are company paid with only 21% taking it up when they have to contribute. Dental plans are taken up by over a third (35%) of employees who are offered it. Over three fifths (63%) of these dental plans are partly paid by the employee. Gym Subsidy is this year s highest riser, rising to over a third on take up (37% compared with 25% in 13). For further information visit 9

12 Which benefit do companies think their employees value most? 32 % of employers think that their staff rate childcare vouchers the most valued benefit Dental plan Gym Subsidy Health Screening PMI Healthy Living Programmes Smoking Cessation Programme Health Cashplan Critical Illness/Payment Protection Other (please specify) Childcare Vouchers Employee Assistance Programme None of the above Figure 1.9 Base: All decision makers Nearly a third (32%) of respondents regarded childcare vouchers as the highest rated benefit among their staff. It seems that employers are aware of the increasing popularity of health screenings among employees (figure 1.16) causing a rise of 9% in the last three years reaching 27%. Dental plans have also shown a large increase in perceived value rising 6% to 25% in 14. One notable statistic is the declining number of respondents who think that their employees value PMI, decreasing from 27% to 18% in the past three years. However, this decline does align with figure 1.16, which shows that PMI is not rated as highly by employers as some other benefits to recruit, retain and maintain employee wellbeing. 1 14

13 Changes to benefit provision in % of companies are considering adding a dental plan to their benefits offering Health Screening Employee Assistance Programme Cycle to Work Scheme Gym Subsidy Critical Illness/Payment Childcare Vouchers PMI 3 Health Cashplan 4 Smoking Cessation Programme 5 Dental Plan Benefits that companies are thinking of adding and removing in 14 1 Considering adding Considering removing Figure 1.1 Base: All decision makers who are reviewing benefits in 14 When decision makers were asked which benefits they were planning to add and remove during the next 12 months, 46% reported they were considering adding a dental benefit. A quarter (25%) stated they would be looking to add health screening. The least attractive benefit remains employee assistance programs, which is currently being added by 12% and removed by 6%. One interesting response is the 22% of companies planning to remove their gym subsidy; this is surprising when compared with figure 1.8, which highlights the increasing uptake of gym subsidy during the past 12 months. For further information visit 11

14 Assessing the value of benefits packages How do you assess the value of the benefits package you offer your employees? Employee feedback Usage levels Financial assessment/roi 67 % of large companies use employee feedback to measure the value of their benefits package Total Small (-1 employees) Medium (11-25 employees) Large (251+ employees) Figure 1.11 Base: All decision makers offering health and wellbeing benefits to their staff Other The method for companies assessing the value of their benefits has remained consistent over the past three years. Regardless of size, employers are most likely to use feedback from their employees (69%). This is especially apparent within medium sized companies (73%). It is worth noting that there is a strong second tier of factors including usage levels (47%) and financial assessments (4%). With technology continuously improving, it s easier than ever for companies to complement employee feedback with usage levels when assessing the return on investment of their offered benefits. 12

15 Reviewing benefits portfolio in % of companies are reviewing their benefits in 14 Employee benefits portfolio review 8 Review of benefits portfolio in 12 Review of benefits portfolio in 13 Review of benefits portfolio in Total Small (-1 employees) Medium (11-25 employees) Large (251+ employees) Figure 1.12 Base: All decision makers The percentage of companies reviewing their benefits has risen over the past three years reaching 63% in 14. The majority of large employers are planning to review their benefits (7%), compared with only half (5%) of smaller ones. One notable statistic is the growth of medium sized companies now choosing to review their benefits increasing 16% since 12 responses. For further information visit 13

16 Always review benefits each year Reasons for conducting a review (by company size) Other (please specify) 6 Specific benefit implementation (e.g. flex implementation) Economic Climate 7 1 Review for Review for Review for Review for Review for Review for Review for Review for Total Medium (11-25 employees) Small (-1 employees) Large (251+ employees) Figure 1.13 Base: All decision makers who are reviewing benefits in 13 or 14 The reasons for carrying out a review in 14 remains similar to those in 13, but there are changes worth noting especially across large sized companies. The most significant of these is the percentage of companies which have made reviewing an annual process, which rose from 54% to 71% in 12 months. The economic climate also remains a key challenge for companies (25%). However, this percentage is down from 13 s 32% highlighting the effect of a recovering economy. This is especially apparent for larger companies, which almost halved in importance (from 35% in 13 to 18% this year). 14

17 Reviewing benefits provider Smoking Cessation Programme Health Screening Employee Assistance Programme Critical Illness/ Payment Protection Gym Subsidy 5 Childcare Vouchers Health Cashplan 6 PMI 7 Dental Plan We asked decision makers which of their current benefit providers they are reviewing in 14. Two-thirds (66%) of decision makers are planning to review their PMI provider. Over half (56%) of companies are reviewing their dental provider and shortly behind employee assistance programme (45%). Compared with last 8 year, fewer companies are choosing to review their health cash plans (decreasing 1% since 13) Other (please specify) 4 There is no financial/economic need to do so 5 Have a regular programme to review benefits not due for review this year 6 The most common reason for small companies not reviewing benefits is that it is not a business priority (4%). Interestingly, this is not the main reason for medium and large companies, which could be partially because they schedule annual employee benefit reviews. Instead, medium and large companies are most likely to be happy with their providers (57% & 43% respectively). Not a business priority Reasons for not reviewing benefits Happy with existing providers Figure 1.14 Base: All decision makers who are reviewing benefits in 14 for the respective benefits they offer Total Medium (11-25 employees) Small (-1 employees) Large (251+ employees) Figure 1.15 Base: All decision makers not receiving benefits in 14 15

18 Benefits considered most valuable for recruitment, retention and employee wellbeing 36 % of companies believe that childcare vouchers help to recruit new employees Recruiting new staff Retaining existing staff Enhancing employee wellbeing Figure 1.16 Base: All decision makers We asked decision makers which benefit they felt offered most value in recruiting and retaining staff. Childcare vouchers (36%) along with critical illness protection (31%) were considered as the most valuable benefits for recruiting new staff, these factors were also the most popular factors to keep staff. Health screenings was the most commonly selected benefit to enhance employee wellbeing at 33% followed by dental plans (29%). 16 Smoking Cessation Programme Health Screening Critical Illness/ Payment Protection Employee Assistance Programme 25 Cycle to Work Scheme PMI 3 Health Cashplan 35 Dental Plan 4 Gym Subsidy Childcare Vouchers Which benefits do companies believe will help toward specific business goals?

19 37 % of people would be attracted to a new employer with PMI 35 3 Keeps me loyal to my current employer 4 Demonstrates your employer s support of your wellbeing Attracts me to a new employer How much influence do benefits have on employees? 25 Dental Plan 15 Private Medical Insurance (PMI) Health Cashplan 1 Gym Subsidy 5 Healthy Living Programmes Childcare Vouchers Figure 1.17 Base: All employees We asked employees the same question and found that their perception of benefits offered a different outcome. Employees rated PMI as the most important benefit across the above three categories. In contrast, employers rated PMI much lower across the board. Decision makers rated childcare vouchers as the most popular benefit to attract and retain staff. Conversely, employees valued childcare vouchers much lower across the board. These answers are consistent with figure 1.8, which shows that take up for childcare vouchers is much lower when compared with other benefits. 14 s survey response shows that employees rate dental plans as increasingly important with rises in each of the above three categories during the past 12 months. Employees view dental plans as one of the most important benefits in demonstrating support for their wellbeing (35%) and second highest when attracting them to an employer (31%). For further information visit 17

20 Factors affecting the choice of dental plan provider Price Choice of plans Flexibility of product Simple product that is easy for employees to understand Figure 1.18 Base: All decision makers providing a dental plan Good account management Access to the provider s network of dentists Good customer service Good claims handling Broker recommendation Looking specifically at dental plans, we asked decision makers the factors which influenced their choice of provider. Across all sized companies price remained the most frequently mentioned factor for choosing a dental plan provider (68%). Secondary reasons have risen in importance including choice of plans (49%), and flexibility of product (51%). 18

21 Reasons among companies for choosing a provider (by company size) Price Small (-1 employees) Choice of plans Flexibility of product Simple product that is easy for employees to understand Good account management Access to the provider s network of dentists Good customer service Medium (11-25 employees) Large (251+ employees) Good claims handling Broker recommendation 1 Figure 1.19 Base: All decision makers providing a dental plan Segmenting the reasons by company size provides an interesting outcome. Small and medium sized companies prioritise flexibility of the product (57%), while the key reason for larger sized companies is choice of plans (54%). Another contrast is that smaller companies rated simplicity of the product (4%) as a factor; this number is significantly higher than larger company response s (3%). For further information visit 19

22 Have you had a request from employees for a dental plan? of employers say they have had a request from their employees for a dental plan 3 Total Small (-1 employees) 1 Medium (11-25 employees) Large (251+ employees) Figure 1. Base: All decision makers The percentage of decision makers saying that they have been asked directly from employees for a dental plan has increased 5% in the past 12 months, rising to 41%. By size, 57% of large companies reported that they had a direct request from their staff, while in medium sized companies it has risen 14% in the past three years to reach 43%. %

23 Page 29 Which employees is the dental benefit offered to? width of bar 5.6mm seperation 28.83mm block seperation (for 4s) All employees Senior employees only Length of service Total Small (-1 employees) Figure 1.21 Base: All decision makers providing a dental plan Medium (11-25 employees) Large (251+ employees) We asked decision makers with a dental plan, which level of employees they offered it to. Overall, the majority (7%) of employers offer their dental benefit to all of the employees. Small companies are more likely to only offer it to senior staff (23%) compared to medium and large sized companies (18%). For further information visit 21

24 Attitudes to dental plans Views among employers Help to manage absenteeism and time taken off for dental emergencies Enhance employee wellbeing Fit within company ethos and show we care about employees Help attract new employees Help retain existing employees Keep our benefits package relevant for today s market 4 84 % of companies with a dental plan agree that it fits within company ethos Figure 1.22 Base: All company decision makers offering a dental plan Companies with a dental plan were asked their attitudes about them. Overall perception remains positive, with 84% of employers believing it fits within the company ethos and shows they care about employees. Additionally, the majority (83%) of decision makers agreed that it enhanced their employee s wellbeing. A noteworthy 84% believe a dental plan is relevant with today s offerings. With the uncertain economic state it is imperative for companies to make sure that benefits meet employee s needs and increase value, helping to retain and attract staff. There has also been a significant rise in employers agreeing that a dental plan helps to manage absenteeism and time taken off for dental emergencies, rising to over two thirds (68%) of respondents. 22

25 Views among employees 54 % of employees think a dental plan is a tangible, usable employee benefit I think a dental plan is a tangible, usable employee benefit I would consider a dental plan if my employer offered it I would appreciate access to a dental plan as part of my benefits package I would consider a dental plan an integral part of my company s benefits package 3 1 Figure 1.23 Base: Employees working for an employer that does not offer a dental plan We asked employees working for an employer, which does not offer a dental plan for their attitude towards dental plans. 62% of respondents stated they would consider one if offered; while 54% agree that a dental plan is a tangible, usable employee benefit. More than half (56%) said they would appreciate access to one as part of a package. For further information visit 23

26 About dentistry Roger Matthews Chief Dental Officer MA BDS DGDP(UK) FDSRCS(Edin) Introduction Company decision makers are aware that there is a direct link between oral health and the overall wellbeing of their staff (82%). Dental problems can not only affect employees ability to sleep, work and socialise effectively, but can often contribute to lifelong oral and general health problems. This is why it s so important that companies encourage their employees to look after their oral health. Unlike some other benefits, dental plans are a tangible benefit that can be used on a regular basis, providing security and helping to maintain health. This makes dental plans all the more attractive and valuable for brokers, companies, and employees alike. Roger joined Denplan in 1995 having spent years working in general dental practice and as an advisor for the Medical Defence Union. He oversees dental advice to the company and its links with professional and political bodies and looks after Denplan s teams ensuring over 6,5 member dentists provide high quality care. 1 Source: Denplan / YouGov survey, January 14. All employed where employer doesn t offer a dental plan. (N = 39) 2 Source: Denplan decision-makers survey January 14. All respondents. (N = 488) 75 % 78 % 32 % Key facts of employees attend the dentist at least once every 2 years 1 of employers are aware that the cost of dental care is rising 2 of employers say that their employees are having trouble finding a dentist 1 24

27 How UK adults access dental care 8 7 Geographic comparisons 6 Attendees in South England and Wales are most likely to visit the dentist once every two years (79%), while London (65%) have the lowest proportion of regular attendees. 5 North 4 Midlands East 3 How often do you see a dentist? London South Wales 1 Scotland Northern Ireland Figure 2 Base: All UK adults (18+) Regular attendance at the dentist has always been acknowledged as a central part of a healthy lifestyle, and our survey finds this attitude has continued with 44% of all adults attending every six months, and 75% at least once every two years. 75 % of adults say they visit the dentist at least once every two years Never 3 Only when in pain Less regularly Every six months 1 At least every year At least every two years Figure 2.1 Base: All regular dental attendee For further information visit 25

28 Attitudes to dentistry 82 % of companies believe there is a link between good dental health and general wellbeing Our employees are having trouble finding a dentist Employees would recognise the value of a dental plan as a tangible, usable benefit Good dental health supports your overall wellbeing The cost of dentistry puts my employees off going to a dentist I am aware of the rising costs of dental care I believe that Government spending cuts will have an impact on NHS dental provision Seeing a dentist close to the workplace would help reduce time away from work to attend dental appointments Figure 2.2 Base: All decision makers Over three quarters (78%) of companies are aware of the rising costs of dentistry, while 82% agree that good dental health supports their staff overall wellbeing. Encouragingly, the majority of decision makers believe that their employees would recognise the value of a dental plan as a usable benefit (65%). Half of companies (5%) agree that cost of dentistry puts their employees off attending the dentist, while 69% believe seeing a dentist close to work would help reduce absenteeism for a dental appointment. 26

29 How charges vary by region 1 Composite filling Page Full exam fee for a private patient Full scale and polish fee 13 PRICING East and Midlands North England North England South West and Wales Figure 2.3 Base: Denplan member dentist insurance Benefits survey, January 14 For further information visit 27

30 About brokers Pam Whelan Head of Corporate Pam joined Denplan in as a Corporate Consultant having previously worked within the financial sector. In January 5 she was promoted to Corporate Sales Manager and in March 13 Pam became Head of Corporate where she is responsible for the overall strategy of the corporate area. Introduction Every year, we survey employers to collect information about their attitudes towards brokers and the value of their services. After a decline in the number of companies using a broker from 11 to 13, the 14 study reveals that the figures have improved over the past 12 months, with just over half of companies (51%) engaging with brokers in their benefit decision making. The results give you an interesting insight into how attitudes in the marketplace vary by company size. What has emerged is that compared to last year, more small and medium sized companies are utilising a broker. This will mean brokers must understand how these companies search for benefits and what their requirements are. These results can help you understand the key dynamics of a broker/client relationship and ensure commercial opportunities are maximised. 1 Source: Denplan / YouGov survey, January 14. All employed where employer doesn t offer a dental plan. (N = 39) 2 Source: Denplan decision-makers survey January 14. All respondents. (N = 488) 51 % 89 % 48 % Key facts of companies use broker advice in procuring benefits 1 of companies that use a broker feel it represents value for money 2 of companies cite broker advice as a method used in their benefits search 1 28

31 Companies accessing brokers Companies using brokers for employee benefit procurement and/or administration 3 Broker advice continues to take the top spot in terms of the most popular method for researching benefits. Large companies also noted using industry publications (28%) and benefits books (25%). Small and medium sized companies are more likely to use web searches (41% and 34% respectively)than larger companies, which may be due to lack of knowledge about the services offered by the broker. Total Small (-1 employees) 1 Medium (11-25 employees) Large (251+ employees) Figure 3 Base: All decision makers 1 Other (please specify) Special supplement in publication 3 Benefits book or annual Specific industry website 4 Industry publication 5 Web search (e.g. Google) 6 Broker advice/ information Methods used for researching benefits Total Medium (11-25 employees) Small (-1 employees) Large (251+ employees) Figure 3.1 Base: All decision makers For further information visit 29

32 Perceptions of broker services The overwhelming majority (89%) of companies accessing broker services feel they represent value for money. Interestingly, small companies responded with the greatest perception of the value using a broker (91%). With the increasing number of small companies now using a broker (43%) it s not surprising that there is an increase in the respondents that agree with the value of using one. 91 % of small companies who use a broker agree services provided by their broker gives them value for money Companies agreeing that services provided by brokers deliver value for money 1 Total Small (-1 employees) Medium (11-25 employees) Large (251+ employees) Figure 3.2 Base: All decision makers using a broker for procurement/admin 3

33 Importance of services provided by brokers 37 % of companies see the importance of using a broker to negotiate deals and special rates Importance of services provided by brokers - as rated by all companies PERCENTAGE VERY IMPORTANT (%) Impartial comprehensive market review Negotiating deals/ special rates Keep me updated on changes in the market Support in communicating the value of benefits to employees Providing outsourced admin/services Give access to technology solutions (e.g. flexible benefit platforms) Provide expertise not available inside the company Figure 3.3 Base: All decision makers using a broker for procurement/admin The unpredictable economic climate means cost affects companies of all sizes. Those using a broker rated negotiating deals (37%) and providing expertise not available inside the company (38%) as the most popular services. One notable increase over the past three years is the rising importance of giving access to technology (19%). With the increasing popularity of flexible benefits means that technology solutions and flex platforms may be becoming more desirable. For further information visit 31

34 Importance of services provided by brokers - as rated by companies of different sizes PERCENTAGE VERY IMPORTANT (%) Impartial comprehensive market review Negotiating deals/ special rates Keep me updated on changes in the market Support in communicating the value of benefits to employees Providing outsourced admin/services Give access to technology solutions (e.g. flexible benefit platforms) Provide expertise not available inside the company Figure 3.4 Base: All decision makers Small (-1 employees) Medium (11-25 employees) Large (251+ employees) It s evident that small, medium and large companies view brokers differently and have diverging views about the importance of their services. Whilst the number of small companies using a broker has increased they are still less likely to rate many of the services apart from negotiating deals (19%). A sizable percentage of medium sized companies (25%) rated the expertise a broker offers outside the company; larger sized companies priority is varied and wider across many services. 32

35 Reasons for not using a broker The previous table s results highlight the differing views of small and larger companies on the importance of broker services. It s also important to understand the reasons why potential clients don t currently engage with brokers. 15 Other (please specify) PERCENTAGE VERY IMPORTANT (%) 25 Wish to have a direct relationship with our benefit providers 3 Previous experience 35 Don t understand the benefit using a broker would bring It is a function of our normal procurement team 4 Cost of engaging a broker is too high Have dedicated staff in-house to manage employee benefits From 11 to 13, the cost of using a broker was the main barrier for employers, but for this year it s on par with having dedicated staff in-house to manage employee benefits. Medium and large sized companies state that having a dedicated in-house team to manage benefits is the principal reason for not using a broker at 39% and 4% respectively. In contrast, smaller companies choose not to use a broker due to the lack of understanding of the benefits using a broker provides (31%). 1 5 Total Medium (11-25 employees) Small (-1 employees) Large (251+ employees) Figure 3.5 Base: All decision makers not currently using a broker for procurement/admin For further information visit 33

36 We re here to help you For more information please contact the Corporate team on , corporate@denplan.co.uk or visit the website Denplan Limited, Denplan Court, Victoria Road, Winchester, SO23 7RG, UK. Tel: +44 () Fax: +44 () corporate@denplan.co.uk Part of Simplyhealth, Denplan Ltd is an Appointed Representative of Simplyhealth Access for arranging and administering dental insurance. Simplyhealth Access is incorporated in England and Wales, registered no and is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Denplan Ltd is regulated by the Jersey Financial Services Commission for General Insurance Mediation Business. Denplan Ltd only arranges insurance underwritten by Simplyhealth Access. Premiums received by Denplan Ltd are held by us as an agent of the insurer. Denplan Ltd is registered in England No The registered offices for these companies is Hambleden House, Waterloo Court, Andover, Hampshire SP1 1LQ. INTR59-614