What’s more, the survey conducted by JHA for Sun Life Financial’s U.S. employee benefits unit, suggests that employers should not underestimate the value of voluntary benefits or assume employees will cut back on supplemental coverage to compensate for rising health insurance costs in this economic climate.
Researchers say they discovered “exactly the opposite” and consider voluntary benefits “an essential way to motivate employees,” providing compelling ammunition for worksite marketers ahead of the upcoming open-enrollment season.
Asked to assume they had adequate medical insurance, the respondents assigned a numeric value to seven benefits on a scale from 0 to 100 points. Dental insurance came out on top at 89, followed by vision at 80, 401(k)/retirement plans at 79, life insurance at 71, long-term disability at 62, short-term disability at 58, long-term care insurance at 45 and cash at 33. Just 5% of the respondents assigned a value greater than 30 to cash.
“As this study shows, one of the most significant drivers of benefits enrollment is simply availability,” says Michael E. Shunney, senior vice president and general manager of Sun Life Financial Employee Benefits Group. “A broad offering of benefits is a key component for employers looking to attract and retain a talented and productive workforce.”
The fact is that workers place a high value on benefits even if they have to pay for part or all of the cost themselves, notes Shunney, who believes the economy appears to be increasing employees’ appreciation of benefits that protect their families from unforeseen risk such as disability or death.
The study, entitled, “What’s Driving Enrollment in Voluntary Benefits Today,” sought to determine which levers have the greatest impact on whether individuals purchase voluntary benefits through their employer and examine other factors that might drive employees to make changes to their benefits, as well as identify how people want to learn about their benefits.
Interestingly enough, marriage was the life event most likely to result in employees updating their benefits (35%), followed closely by the birth or adoption of a child (34%), becoming a caretaker (29%), divorce (27%), buying a home and saving for an education (22% apiece), and death (17%).
The report can be downloaded at http://www.sunlifemomentum.com/09research.
