EUCLID MANAGERS®
has served the independent agent
since 1976, offering a portfolio
of group health, professional
liability, individual life, health,
disability, annuity and long-term
care products.
We proudly represent many
fine carriers including
Group Products:
UnitedHealthcare of Illinois
Delta Dental of Illinois
MetLife
Benefit Trends Study 2015
With the ongoing implementation of the Affordable Care Act, many
employers and employees are facing new choices, new constraints and
new rules. These changes have challenged long-held assumptions regarding
employee benefits and their value for both employers and employees.
MetLife has conducted an employee benefit trends study for many years.
This issue of Reflections provides a review of some of the key findings of this
study.
continued on page 2
Concierge Services:
LifeLock
HealthiestYou
Individual Products:
American General Life Companies
Assurity Life Insurance Company
Delta Dental of Illinois
Fidelity Life
Genworth Financial Insurance Co.
John Hancock Life
Legal & General
(Banner and William Penn)
Lincoln National Life
MetLife
NGL
Principal Financial
Protective Life
Prudential Financial
Transamerica
UnitedHealthOne
VOYA
A letter from Karen Knippen
We have had an interesting five years since passage of the Affordable Care
Act. So much has changed and more change is coming. But, this survey
shows that some things haven’t changed.
These are:
1. Employers still believe that employee benefits help them attract and
retain employees.
2. Employees still value the benefits that employers provide.
The challenge continues to be helping employers develop the package of
benefits that meets their goals at a price that they can afford. Euclid
Managers has the products and services to help you meet this challenge.
Sincerely yours,
Contact Information
234 Spring Lake Drive
Itasca, Illinois 60143
Phone: (630) 238-1900
Outside Chicagoland:
(800) 345-7868
Fax: (630) 773-8790
www.euclidmanagers.com
Karen Knippen, RHU, REBC, CLTC
Senior Vice President
EUCLID MANAGERS® has been serving the independent agent since 1976 with a portfolio of group health, professional
liability and individual life and health, annuity and long-term care products. We proudly represent UnitedHealthcare,
Delta Dental of Illinois, MetLife and Humana Individual. We encourage your feedback and suggestions. Please call
your EUCLID MANAGERS® Marketing Representative or Marcy Graefen at (630) 238-2915 for more information. Outside
Chicagoland, call (800) 345-7868. Website: www.euclidmanagers.com
Benefits Drive Loyalty
11-15 Benefits
16-20 Benefits
The study reports that employees with more benefits
were more satisfied and more loyal. In 2014, employees
who were very satisfied with their benefits were almost
four (4) times more likely to be very satisfied with
their jobs.
Satisfaction was also tied to the number of benefits
offered. Sixty-six percent (66%) of employees reported
that they would recommend their firm as a great place
to work when there were 11-15 benefits offered. In
contrast, when no benefits were offered only 46% of
employees would recommend their firm.
Employers were asked to rank their objectives
for offering benefits. The objectives by level of
importance were:
• Retaining employees
• Controlling health and welfare costs
• Increasing employee productivity
• Attracting employees
• Reducing HR administration costs
• Helping employees make better financial decisions.
Employees Expect and Value Choice
As employees are being asked to shoulder more of the
cost of coverage either through increased contributions
or increased voluntary benefits offerings, they value
more choices.
The survey found that the more choices of benefits,
the higher the number of employees who would
recommend the firm as a great place to work. The
percentage of employees who would recommend the
organization based on benefits:
No Benefits
Fewer than 5 Benefits
5-10 Benefits
-2-
Reflections
46%
53%
58%
66%
66%.
The analysis found that the greater number of benefits
offered enabled employees to select voluntary benefits
that met their unique needs.
What Motivates Employee Satisfaction?
The survey explored nine (9) factors that drive
employee satisfaction. The greatest single issue
reported by 35% of employees was that benefits
reduced the worry about unexpected health and
financial issues.
Other areas that impact employee satisfaction with
benefits included:
• Ease of understanding benefits
• Adequacy of the employer contribution to coverage
• Whether the benefits met the employee’s needs.
Not surprisingly, different concerns were expressed
depending upon the age of an employee. The youngest
employees were focused on building financial security.
As the employees aged, they grew to worry about
family finances, meeting obligations and, as older
boomers, retirement savings.
Education Preferences
A benefit plan that is poorly communicated or not
understood is of little value. Employees need information in order to select plans that meet their needs.
Employers need to communicate the plans that they
offer in a way that employees can grasp.
The survey found that employees of different ages had
different preferred methods of communication and
education. Both employers and employees ranked
one-on-one in person meetings as the highest among
education options.
Group in-person meetings and the benefits handbook
were favored equally by employees. Employers,
however, ranked group in-person meetings higher
than booklets. Benefit fairs were the least effective
as reported by both employers and employees,
coming in behind the company’s benefit website.
What Benefit Options Employers
are Considering
Employers continue to review options to reduce
benefit costs. More employers are looking at health
insurance exchanges as a cost-control option. Almost
one-third of medium and large companies are looking
to exchanges as a cost-control option. Smaller
companies are less inclined to pursue this option
with only 17% citing exchanges as an option to pursue.
The highest ranked options for employers of all sizes
are shifting to consumer-driven health plans and
defined contribution health plans. Both of these
options are being considered for adoption within the
next three years by about one-fourth of companies.
Health Care Reform
The survey found that employers and employees
don’t view communication on the impact of health
reform on their benefits in the same way. Almost
two-thirds (63%) of employers reported that they
had communicated the effects to their employees.
Yet, only 37% of employees agreed.
The study’s authors see this disconnect as an
opportunity for employers. Employers can take steps
that educate their employees about health care reform
and how it may – or may not – impact their employerprovided benefits.
Understanding Benefits by Product
As employers increase the number of benefit options,
the challenge remains to ensure that employees
understand them. The most understood products
and plans (approximately 2/3 or more of employees
report they understand) are:
• Dental insurance
• Health insurance
• Auto insurance
• Prescription drug coverage
• 401(k) or retirement plans
• Vision plans
• Life insurance
• Home insurance.
At the mid-level of understanding are these plans:
• Short term disability insurance
• Long term disability insurance
• Accidental death and dismemberment
• Identity theft protection
• Accident insurance.
The least understood plans, averaging about 1/3 or
fewer employees, are:
• Defined benefit pension plans
• Financial planning
• Legal services
• Pet insurance
• Critical illness insurance
• Cancer insurance
• Hospital indemnity insurance.
The level of understanding – or misunderstanding – of
these plans, some of which are newer employer-based
offerings, can help guide communication efforts for
both employers and brokers.
The information reported in this issue of Reflections is culled from MetLife’s 13th
Annual U.S. Employee Benefit Trends Study.
Reflections
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A service publication for brokers from
Euclid Managers®, proudly representing
UnitedHealthcare of Illinois, Delta Dental of Illinois,
MetLife and UnitedHealthOne.
HealthiestYou and Lifelock available through Euclid Managers Concierge Services.
www.euclidmanagers.com
Legislative Review is published by Euclid Managers®, 234 Spring Lake Drive., Itasca, IL 60143. For more information, contact your Marketing Representative or Marcy Graefen
at (630) 238-2915 or marcy@euclidmanagers.com. Outside Chicagoland: (800) 345-7868, Fax (877) 444-2250. © Permission to quote with credit to source.
Benefit Trends Study 2015
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