by MetLife

The findings from the 8th Annual Study of Employee Benefits Trends point to the apparent resilience of workplace benefits in this recession, and reveal that, as employers and employees continue to deal with the effects of the economic downturn, they are focused on the long term. Most employers have not reneged on their benefits commitments and employees continue to depend on their workplace benefits for protection and stability.

However, this year’s Study also reveals a benefits landscape that has been altered as a result of the recession experience. Employees must deal with the financial risks that were exposed when their 401(k) balances precipitously declined and their jobs became uncertain. Employers must seek ways to maintain a competitive advantage for their benefits programs in the context of greater focus on employee productivity and cost control.

Despite these challenges, employers and employees appear to be working toward a common goal: Securing financial health & wellness. Through employer-sponsored wellness programs, automatic enrollment features for retirement savings plans, voluntary benefits and protection products, employers are taking steps to help their employees act on their best intentions.

This year’s Study provides new insights that can help employers identify opportunities to realize the full potential of their benefits programs and to maximize the return on their benefits investment.

Key Highlights from the Study.

Employers Say That:

1. The importance of controlling costs has increased and is now their most important
   benefits objective.
2. The focus on employee retention is somewhat reduced, but is still the second most
   important objective despite the weak job market.
3. Employee productivity remains the third most important objective, but the steady
   increase in importance since 2007 continues.
4. Programs that help foster employee health & wellness and financial security are
   effective in improving employee productivity.
5. Active employer engagement in their qualified retirement plans is increasing and is
   necessary to help employees realize adequate income in retirement. There is emerging
   interest in automatic enrollment, automatic escalation and default annuitization in larger
   companies to help employees act on their intentions to save.
6. They have not increased their focus on providing financial advice, guidance and
   retirement education, despite employee interest, perhaps reflecting the economic
   pressures of the last year.
7. Voluntary benefits can cost-effectively enhance a benefits program, yet few are increasing
   the number offered or prioritizing this as a strategy.

Employees Say That They:

1. Intend to delay retirement. A full 59% of employees now plan to work past age 65.
2. Did not cut back on their benefits participation in the workplace, despite tight budgets.
   They value benefits as part of their financial safety net, and the workplace is the primary
   source for obtaining those benefits.
3. Are more satisfied with their benefits than at any time since 2007, before the recession,
   and they accept that they may need to pay more to get more in the new economy.
4. Feel hopeful about their short-term financial outlook, but still have significant concerns
   about their personal financial situations and admit that those concerns affect their
   workplace productivity.
5. View wellness programs as very worthwhile and connect successful participation to
   better health and productivity.
6. Remain very interested in having their employers provide financial advice, guidance and
   retirement education as they seek ways to realize predictable income for retirement.
7. Are more cautious, and have an increasing appetite for investment options that offer
   more safety than the potential of high returns, at least for now.

Full study can be found here: http://www.metlife.com/assets/institutional/services/insights-and-tools/ebts/Employee-Benefits-Trends-Study.pdf