INTRODUCTION

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For the seventh consecutive year, MetLife has surveyed employers and employees on pressing issues facing the U.S. benefits industry today and compiled the results in its annual Study of Employee Benefits Trends.

This year’s findings suggest employees, now faced with new economic realities, place a greater value on their benefits and employee benefits professionals must continue to balance the benefits choices that best meet both the business objectives of their management—which continue to be employee retention, cost control and increased productivity—with the needs of their employee population. This Study highlights key insights that can help employee benefits professionals make sound choices in the face of economic and social challenges.

ALIGNING BENEFITS IN CHALLENGING TIMES

A simple, yet strong message has emerged: Now, more than ever, employees value their benefits. In fact, they value benefits even more keenly in light of difficult economic times. 33% of employees said they considered workplace benefits to be the foundation of their financial safety net in August 2008 increasing to 41% in November – an 8% increase.

But there also remains a gap between employee and employer perceptions about how benefits contribute to loyalty providing opportunities that may be perfectly suited for consideration in the current environment.

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BENEFITS SOLUTIONS FOR EMPLOYEE PRIORITIES

In light of difficult economic times, employees value their benefits and indicate a greater interest in understanding the benefits they receive through their employer. Employees don’t feel confident in their ability to make the right financial decisions and look to the workplace for advice and guidance. Employees also do not feel prepared to face significant financial uncertainty such as income loss due to disability, elder care or premature death. This enlightened awareness and concern point to the value of voluntary benefits offerings. Many of the benefits that have the greatest potential to influence employee loyalty can actually be cost-effectively and efficiently implemented by employers.

Employers who recognize the opportunity to take a leadership role by restoring renewed financial security to their employees through creative benefits and financial advice and guidance, will position themselves to emerge from these challenging times with their most valuable asset – the people who work for them – focused and engaged.

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BENEFITS STRATEGIES FOR ENGAGEMENT AND PERSONAL RESPONSIBILITY

Benefits are not immune from economic considerations; but there is a healthy growing interest in programs that drive employee engagement and personal responsibility. Trends in both work life balance programs and wellness initiatives suggest growing employer interest in sponsoring programs that better acknowledge the needs of today's worker. Offering programs that coincide with employee needs and preferences, is an area of growing interest reflected in this year's study. In addition, many employers may not be getting the maximum value from their benefits investment simply because employees are not getting the message about available benefits that meet their individual needs. Now, more than ever, employers can provide targeted benefits communication programs that seek to create greater awareness, understanding and satisfaction with benefits.

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REBUILDING RETIREMENT SECURITY

Retirement is top of mind for many employees surveyed – employee concern about retirement issues increased significantly from August to November. Perhaps because of this heightened concern, retirement benefits increased as a contributor to employer loyalty to their companies from 67% in August to 72% in November. From advice to income, this year’s Study suggests that employers and employees see the retirement landscape – and some potential actions and solutions differently.

Benefits solutions that help create guaranteed retirement income and those that address financial planning and retirement needs are just a few of the choices employers can make in an uneasy economic environment.

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