MetLife's Employee Benefits Trends Study Finds Employees &qu

 

Tuesday, Mar 24,2009, 11:38:56 PM   Click:

NEW YORK - (BUSINESS WIRE) - March 23, 2009 - Despite current economic conditions, retention of employees "remains the most important benefits for U.S. firms, which shows that employers view talent as source of competitive advantage in the economy and bad times, according to MetLife's 7th Annual Employee Benefits Trends study, published today. However, economic pressures are more and more employers at the same time focus on controlling costs and increase employee productivity - employers second and third goals of profits, respectively.

For workers, the financial protection is a growing priority. According to MetLife, market volatility has made employees more aware of their risk exposure, which cause 56% say they appreciate the benefits of their workplace than ever before. The study also revealed that 41% of workers in general, and over half (52%) of those large employers (with 2,500 or more employees), strongly consider the benefits of their workplace from the foundation of their financial safety net. Nearly half of working Americans (46%) say that because of recent economic events that they run a greater interest in understanding the benefits they receive through the workplace.

Despite the economy, most employers do not cut benefits

With a greater recognition for their work, some employees fear that if employers are May cut-backs in social benefits and / or coverage levels. One third of all workers are concerned that employers cut benefits for working during the next 12 months. However, less than 15% of employers expect to make such cuts. The same holds true for small employers (those with fewer than 500 employees), of which only 14% plan to reduce the benefits provided in a manner in response to adverse economic conditions. Perhaps it is because 39% of employers (and 50% of employers with 2,500 or more employees) believe that the morale in the workplace is strongly linked to quality employee benefits.

"With employees expressing a recognition of the work, employers have an excellent opportunity to maximize the intrinsic value of their benefits to both their people and the bottom line," said Bill Mullaney, president, MetLife Institutional Business . "It's great to see that most employers are focused on long-term goals of sustainability and to consider carefully how to respond to current economic pressures."

Taking Action Employee

For employees, knowing the benefits of support programs could not come at a better time. Over the past 12 months - with the financial slowdown significant catalyst - the workers have left financial "intent" to "action". Many have heard the alarm and have now taken steps to assess their personal finances. Indeed, six out of ten employees - and 73% of older baby boomers - say they have been motivated by the economy to discuss their needs for retirement income. To guard against future financial risks, many have been motivated by the current economy to take steps to determine the needs of their households in life insurance (44%), disability insurance (38%) and long-term care insurance (35%). For those with children under 18 years, these percentages rise to 57%, 49% and 46%, respectively.

Optimism in the short term, long-term concern

Perhaps because of the measures they take to start, many workers feel optimistic about their short-term financing in the long run. Interestingly, although 45% of employees now say they live paycheck (up 37% in 2006), about four in ten (43%) believe their economic situation improve over the next six months, while only 20% believe it will worsen. Generation Y workers, born between 1977 and 1987, are the most confident, with 56% expecting their financial situation to improve by mid 2009.

In the longer term, however, employees are concerned about their ability to afford a comfortable retirement. Just over half (51%) say they intend to retire later than they expected 12 months ago.

The most boring retirement concern is "being able to offer health care to retirement", cited by 65% of employees, followed closely by "survive retirement money," cited by 61% and the provision of a joint long-term care needs, also cited by 61%. More than half (51%) of employees are very interested in having their employer to provide access to financial planning to help to make retirement decisions, such as investing in a 401 (k), up 38% in 2006.

The need to pay daily expenses is the number one reason on the path to early retirement, with 60% of pre-retirees 51-60 years and even 43% of those 61-69 years, noting that they depend on their paychecks for current expenditures. In addition, five to ten workers report to remain in the workplace, either because they rely on their wages to save for retirement (48%) or to maintain access to benefits (47%).

"Last year we saw that employees were ready for action and research work for tips," notes William RACZKO, Vice President, MetLife Institutional Business. "Today, employees have started to take action, motivated largely by the economy. They pay more attention to the construction of a safety net and how the employer can help. This change of attitude has a tremendous opportunity for employers to be creative in leveraging the value of their benefits as a tool to strengthen the loyalty and productivity. "

The growth of loyalty - but large gaps exist Perception

Probably due in part to the uncertain labor market, employees of the workplace high fidelity. About six in ten (59%) workers said they felt a strong loyalty to their employer, in November 2008, against 53% three months earlier. And despite some employers to make difficult personnel decisions, employers feel increased loyalty to their employees - 57% of employers in November 2008 were described as very loyal to employees by 52% in August. However, many employers are wrong in regard to some of the key factors affecting employee loyalty.

Top influencers of employee loyalty: