According to the fifth annual MetLife Study of Employee Benefits Trends, employee retention is the top benefits objective among employers, edging out controlling costs for the first time since the study's inception. This is significant, as it suggests the growing recognition among employers for the need to create benefits plans that address the struggle to recruit and retain employees.
Employers looking for successful benefits strategies should consider the way many voluntary benefits complement medical plans. Employees can face serious financial protection gaps even with robust medical coverage. For example, medical insurance is not designed to provide income protection when out of work due to a disability, long-term assistance with the activities of daily living, coverage for deductibles, co-payments and some of the other pocket expenses that can occur when surviving a critical illness.
Financial protection benefits such as disability, critical illness insurance, long-term care insurance and life insurance can help protect current lifestyles and savings and also help prevent tapping into retirement savings—especially important since many Americans say they already are behind on their retirement savings. These additional benefits offerings should be considered a supplement, not a replacement for health insurance. Adding these supplemental benefits as voluntary offerings can make them a convenient and cost-effective way for employers to assist employees in building a personal financial safety net.
Of course, a robust communication and educational plan is a critical component of any benefits program. In MetLife's study, only one-third of employees felt strongly that their company's benefits communications effectively educates them about their benefits options. This underscores an area for improving employees' understanding and appreciation of their workplace benefits, especially as the study reveals a strong correlation between benefits satisfaction and job satisfaction.
Randy Stram is currently responsible for MetLife's executive benefits and voluntary benefits offerings. Prior to his current role, he was responsible for the development and management of MetLife's critical illness product. A copy of the fifth annual MetLife Study of Employee Benefits Trends referenced above can be obtained free of charge at whymetlife.com/trendspr.
