Value of Employee Benefits: Which Do You Believe?

by Cathy Miller on March 4, 2014

in Health Insurance

This illustration depicts a businessman scratching his head and undecided.The value of employee benefits is the latest victim of conflicting information.

Those of us interested in managing our health are used to this phenomenon.

Different results are the norm in health care, as evidenced by the following recent findings.

Now, we have two reports quantifying employees’ value of their workplace benefits.

Yet another example of contrasting findings.

So, which do you believe?

The Value of Employee Benefits: The Rise and Fall

Perception is everything. What that perception is appears debatable.

 

Value of Employee Benefits slide

The Mercer Study

The above statistics reflect the view of respondents age 50 and under. The shift to greater out-of-pocket costs for employees is one major factor in the drop in perceived value.

Most respondents (93 percent) rated employee benefits as important as their salary. So, the significant dip warrants attention for recruiting and retention purposes.

The Guardian Study

This survey also validated the value of employee benefits to workers.

Seventy-nine percent rated benefits as crucial for staying with their current employer. The report goes on to say that every component measured showed an increase, including the following.

  • Believe employee benefits meet personal needs
  • Think they are affordable
  • Benefits have a positive impact on health, wellness, financial security
  • Benefits are well-communicated by employers

Calm Before the Storm?

Both reports recognize health reform’s Affordable Care Act (ACA) is the “elephant in the room” (as the Mercer Study describes it).

Employers and workers alike are not sure about the full ACA implications.

  • Is this the calm before the storm?
  • Or will we be able to ride it out to higher ground?

That could depend on which you want to believe.

BigStock Photo Credit

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Notice of Disclaimer –Cathy Miller is not an attorney or health care provider and cannot provide legal or health care advice. The information provided is for your general background only, and is not intended to constitute legal or health care advice as to your specific circumstances. We recommend you review legislation with legal counsel and visit your physician for health care issues.

 

 

 

{ 2 comments… read them below or add one }

Kevin H @ Growing Family Benefits March 4, 2014 at 1:24 pm

In my experience the vast majority of employees have no concept for the value they receive in employee benefits. The employer contribution towards the premium costs are usually hidden. The true cost is not revealed until an employee elects to continue coverage under COBRA – and sticker shock sets in.
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Cathy Miller March 5, 2014 at 6:22 am

Very true, Kevin. I know of more than one employee who had an eye-opening experience when they received notification of COBRA premium.

I think it has changed somewhat as employers have gotten much more vocal about their contributions to the point of issuing benefit statements. But, there are still employees that pretty much take the benefits for granted. They could always try freelancing to discover the value of the employer sponsor. ;-)

Thanks for sharing your thoughts, Kevin.

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