Voluntary Benefits: Impact on Workers Comp & Clients Bottom Line!

Transcription

1 2014 Aflac WorkForces Report Voluntary Benefits: Impact on Workers Comp & Clients Bottom Line! 1 A F L A C W O R K F O R C E S R E P O R T

2 Current realities: Business pressures 2 A F L A C W O R K F O R C E S R E P O R T

3 Today s employers: Concerned about rising costs Moving employees toward consumerism Don t plan to communicate and engage 3 A F L A C W O R K F O R C E S R E P O R T

4 Employers place a high priority on controlling costs 49% of employers say controlling costs is a top business objective; businesses continued to shift benefits costs in 2013:

5 Benefits matter to workers

6 Benefits matter 85% satisfaction 83% loyalty INFLUENCE OF BENEFITS PACKAGE 78% decision to leave 57% of employees are likely to accept a job with lower pay, but better benefits 73% refer a friend 6 A F L A C W O R K F O R C E S R E P O R T

7 Today s workforce: Financially unprepared and not protected In denial about health realities Aren t engaged in benefits decisions Fear changes to health system 7 A F L A C W O R K F O R C E S R E P O R T

8 Financially unprepared 56% have NO financial plan or goals in place 42% NOT prepared to pay for out-of-pocket expenses Workers Financially Unprepared Only 31% feel confident in financial future 27% have less than $500 to pay for out-of-pocket expenses 8 A F L A C W O R K F O R C E S R E P O R T

9 Not protected 27% dealing with personal or family health issue Only 16% feel their benefits package meets the needs of their family Workers Not Feeling Protected 76% want more benefits options 13% already dealing with high medical bills 9 A F L A C W O R K F O R C E S R E P O R T

10 In denial Only 12% think they/family will be diagnosed with a serious illness 5% say they/family will likely be in a car accident Workers Not Facing Health/Accident Realities 7% say they/family will become disabled 8% say they/family will require a long-term hospital stay 10 A F L A C W O R K F O R C E S R E P O R T

11 Many workers are not prepared financially 24% of employees named personal financial issues as their top non-work-related issue that distracts them during work. 11

12 Productivity: Calculating the impact - Many companies say increasing employee productivity is a top HR concern - 39% of employees are experiencing a personal issue that has impacted their ability to get their work done - On average, employers say 22.1% of work productivity is lost due to concern about personal issues 39% of 1,000 employees = 390 workers Average 22.1% of hours lost 3,448 hours per week in lost productivity

13 Turnover: Workers ready to leave 48% of workers are likely to look for a new job in the next year 26% of those are extremely/very likely Benefits alone can alleviate projected turnover: 46% of workers said Improving my benefits package is the one thing my employer could do to keep me in my current job.

14 Turnover: Calculating the impact 79% of workers agree that a well-communicated benefits program would make them less likely to leave 43% say their HR department communicates about employee benefits too little 1,000 Employees X 26% at Risk of Leaving = X $15,495 (33%) X Average Salary of $46,954) = $4.02 million TURNOVER COSTS

15 Latest findings The state of the U.S. workforce is concerning Benefits represent a competitive advantage Engagement and communications lacking Voluntary insurance in demand 15 A F L A C W O R K F O R C E S R E P O R T

16 Desire for voluntary benefits 63% see a growing need for voluntary insurance versus previous years 76% say because of increasing medical costs 66% say because of rising coverage costs 51% say because of changes due to reform 16 A F L A C W O R K F O R C E S R E P O R T

17 Impact of voluntary benefits 23% of employees are enrolled in voluntary benefits programs +18% more likely to be extremely/very satisfied with their jobs +38% more likely to be satisfied with their benefits programs +19% less likely to look for a new job 17 A F L A C W O R K F O R C E S R E P O R T

18 Voluntary insurance improves employee perceptions * Among those who have heard the phrase consumer-driven health care.

19 Voluntary Accident & Workers Comp Claims 40% of companies that offer voluntary accident insurance experienced a decline in workers compensation claims 19% have experienced declines of 75%+ 28% experienced declines of 50-74% 37% experienced declines of 25%-49% 19 A F L A C W O R K F O R C E S R E P O R T

20 Voluntary STD & Workers Comp Claims 36% of companies that offer voluntary short-term disability insurance experienced a decline in workers compensation claims 16% experienced declines of 75%+ 23% experienced declines of 50-74% 40% experienced declines of 25%-49% 20 A F L A C W O R K F O R C E S R E P O R T

21 Voluntary Hospital Indemnity & Workers Comp Claims 37% of companies that offer voluntary hospital indemnity insurance experienced a decline in workers compensation claims since they began offering 20% experienced declines of 75%+ 32% experienced declines of 50-74% 25% experienced declines of 25%-49% 21 A F L A C W O R K F O R C E S R E P O R T

22 Voluntary Critical Illness & Workers Comp Claims 29% of companies that offer voluntary critical illness insurance experienced a decline in workers compensation claims 28% experienced declines of 75%+ 25% experienced declines of 50-74% 31% experienced declines of 25%-49% 22 A F L A C W O R K F O R C E S R E P O R T

23 Impact of Voluntary Benefits on Workers Compensation Claims 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 40% 36% 37% 29% Experienced decline in workers compensation claims Accident Insurance Short-Term Disability Hospital Indemnity Critical Illness 23 A F L A C W O R K F O R C E S R E P O R T

24 Workers Compensation Trends 73% of companies have a formal/official system in place to track their workers compensation claims. Of those companies who reported a decrease in their workers compensation insurance premiums, 36% agreed the decrease was due to the addition of voluntary benefits. 42% of companies plan to offer voluntary worksite benefits as a preventative measure 24 A F L A C W O R K F O R C E S R E P O R T

25 Voluntary Accident & Absenteeism 31% of companies that offer voluntary accident insurance experienced a decline in worker absenteeism 21% experienced declines of 75%+ 31% experienced declines of 50-74% 28% experienced declines of 25%-49% 25 A F L A C W O R K F O R C E S R E P O R T

26 Voluntary STD & Absenteeism 30% of companies that offer voluntary short-term disability insurance experienced a decline in worker absenteeism since they began offering 15% experienced declines of 75%+ 32% experienced declines of 50-74% 29% experienced declines of 25%-49% 26 A F L A C W O R K F O R C E S R E P O R T

27 Voluntary Hospital Indemnity & Absenteeism 31% of companies that offer voluntary hospital indemnity insurance experienced a decline in worker absenteeism since they began offering 22% experienced declines of 75%+ 34% experienced declines of 50-74% 22% experienced declines of 25%-49% 27 A F L A C W O R K F O R C E S R E P O R T

28 Voluntary Critical Illness & Absenteeism 29% of companies that offer voluntary critical illness insurance experienced a decline in worker absenteeism 28% experienced declines of 75%+ 24% experienced declines of 50-74% 33% experienced declines of 25%-49% 28 A F L A C W O R K F O R C E S R E P O R T

29 Impact of Voluntary Benefits on Workers Absenteeism 32% 31% 31% 30% 30% 29% 29% 31% 30% 31% 29% Accident Insurance Short-Term Disability Hospital Indemnity Critical Illness 28% Experienced decline in worker absenteeism 29 A F L A C W O R K F O R C E S R E P O R T

30 Importance of brand in insurance decisions 85% of workers say brand is important when selecting an insurance option 45% say it is extremely/very important 30 A F L A C W O R K F O R C E S R E P O R T

31 Crucial steps: Companies Understand employee expectations Assess benefits options and implications Weigh long-term impacts of decisions Plan for implementation and integration Engage workers early and often 31 A F L A C W O R K F O R C E S R E P O R T

32 Learn more: Aflac.com/Insights GetTheRealCost.com 32 A F L A C W O R K F O R C E S R E P O R T

33 Local Contact: Kristopher Keahiolalo Aflac Broker Sales Group Representative (Office) (Cell) 33 A F L A C W O R K F O R C E S R E P O R T