MetLife released its 8th installment of its Annual Study of Benefits Trends on Monday. In comparison to prior
Employee financial issues a central theme in this year's survey
years, the themes of employee financial security and benefits communications played a more prominent role than ever before. This was a natural emphasis given the backdrop of economic volatility and a renewed employer focus on benefits cost control.
We wanted to highlight and provide my perspective on three key points that came out of this year’s study:
There is a Health-Wealth Connection. MetLife’s survey work, which is consistent with other studies we’ve seen, revealed a connection between an employee’s physical and financial health. Put simply, those employees who assessed their medical health as “fair to poor,” were much more likely to report financial concerns. MetLife therefore concluded that an employee’s health status impacts an employee’s financial situation. Our conclusion would be a different one. Given our experience with employee financial stress and the studies that have been done in this area, we believe strongly that it is an employee’s money issues that leads to poor health and NOT the other way around. Stress has long been referred to as America’s #1 health problem and virtually every study you read points to money issues as the leading cause of stress (and it’s not close).
Benefits Communications Effectiveness on the Decline. Each year, MetLife surveys employers and employees on their perception of benefits communication effectiveness. This is one of those areas of true disconnect. Over the past three years, employers believe they have made slight improvements to their benefits communications. Employees, on the other hand, rate benefits communications as less effective than the year before. In fact, this year only a third of employees rated their benefits communications as effective vs. 40% in 2007. Just in the last three years, there have been such dramatic changes in the way that employees access information and learn. And yet, too many employers have stuck to dated and ineffective forms of communications that have been in place for decades.
Personal Financial Distractions Drain Productivity. In the past 12 months, 12% of employees surveyed took unexpected time off to deal with a financial issue and 17% reported that they spend more time at work on personal financial issues than they think they should. Personal financial distractions are and have been an expensive problem for some time now. What is encouraging, is that almost two-thirds of employers have now recognized personal financial issues as a drain on productivity and 45% acknowledge financial education as an effective solution.
Key takeaways:
- The financial health of employees may be one of the largest determinants of their medical health. Your health wellness strategy should include a financial wellness component.
- You can improve employee understanding of benefits but you need a modern approach to the way that you communicate them. This does not need to be an expensive undertaking – improving benefits communications will cost you a tiny fraction of the benefits themselves.
- Employee money issues cost your company each day. Providing your employees with programs that help them help themselves will increase productivity and employee loyalty.
