Employee Health Benefits

Top companies make adjustments for workers during tough times

News - Employee Health Benefits

Monday, 22 August 2011 16:00

In a climate of rising healthcare costs and heavy responsibilities being put on workers due to the slow economy, small adjustments can help organizations strengthen employee performance while keeping employee health benefit costs low.

Principal Financial Group examined the aspects that make organizations successful during difficult times.

Top companies "understand the direct connection between well-rounded benefits, a healthier, happier workforce and a better bottom line. That's what sets them apart from other companies in both the best and worst economic times," said Luke Vandermillen, VP of Principal.

One shift that well-performing companies have been making is to help workers tailor their insurance packages to suit individual needs, as well as share in the cost of benefits. Additionally, engaging and educating staff members on how to best use their benefits may be a key factor in keeping costs relatively low.

Additionally, the company announced that successful organizations have been using employee wellness programs to get to the root of benefit costs: staff health. Improving workers' mental and physical well-being has been shown to be an effective way to reduce insurance expenditures.  

Employee enrollment in company health plans increases

News - Employee Health Benefits

Wednesday, 03 August 2011 16:00

Research by consulting firm Mercer indicates that employee enrollment in company healthcare plans has increased by an average of 2 percent in the year since the Patient Protection and Affordable Care Act was passed, extending coverage for dependents to include employees' children up to the age of 26. Almost a quarter of companies surveyed indicated that enrollment had risen by 3 percent or more.

“Employers have already been facing average increases in per-employee health benefit cost of about 6 percent annually for the past six years,” said Tracy Watts, a Mercer consultant. “Adding enrollment growth on top of that puts a real strain on their budgets.”


Another provision of the law requires employers to enroll full-time employees when hired or when they meet eligibility requirements, which is projected to cause another 2 percent rise in enrollment.

This change and several others will take effect in 2014, and many employers are anticipating the possibility of a cost increase, although 15 percent indicated they were already in compliance with the new provisions an their costs would be unaffected. Less than 10 percent said they were likely to drop coverage due to the changes.

Many companies have recently begun investing in employee wellness programs and initiatives meant to increase overall staff health, since promoting well-being may decrease insurance and overall costs by emphasizing wellness and preventive measures. 

Improved employee health benefits may reduce turnover

News - Employee Health Benefits

Tuesday, 26 July 2011 16:00

As the cost of living creeps up, employees may be valuing their pay and benefits more than other job aspects, according to the Chartered Institute of Personal Development's (CIPD) recent Employee Outlook survey.

The research revealed that employees name their health benefits and salaries as the number one reason they would consider moving to another job, with 54 percent citing monetary reasons as a motivator to change companies.

By contrast, last year's survey revealed that the top reason for moving to another position was job satisfaction.

This shift in motivating factors may also reflect an increase in workplace stress.

“Besides being more likely to want to leave for more pay elsewhere, workers with financial difficulties are also more likely to report being under stress at work and are typically less satisfied with their jobs," said CIPD spokesperson Ben Willmott.

He added that chronic stress can potentially increase employee absenteeism as well as harm a worker's mental and physical health.

Results of this survey suggest that employee wellness programs aimed at reducing workplace stress and improving staff health may help retain workers.  

Employee health benefits may be key to retention for small businesses

News - Employee Health Benefits

Monday, 25 July 2011 16:00

Employees who work for small companies tend to choose such workplaces for various reasons, including a more personal environment and the opportunity to watch a business grow. A new MetLife study reveals that employee health benefits are also an attractive factor for these workers.

The survey found that 72 percent of small business employees who felt they had good benefits also felt a strong loyalty to their employer. Conversely, half of small business staffers who thought their perks were inadequate expressed a desire to change jobs.

"One area small businesses may overlook is whether their benefits programs are designed as strategically as they could be. It is not necessarily about spending more, but optimizing offerings to attain three top objectives: employee retention, increased productivity, and cost control," said Jeffrey Tulloch, VP of U.S. Business at MetLife.

The study also revealed that there has been an 18 percent decline in employee loyalty in the small business sector between 2008 and 2010, from 62 percent to 44 percent of workers reporting a strong sense of loyalty.

Improved employee health benefits may lead to a healthier staff, which could, in turn, improve employee performance and reduce workplace stress.