Uneasy Workers Don’t Appreciate the Value of Benefits

U.S. workers feel uneasy and less positive about the workplace and the value of their employee benefits, according to a research report released by Prudential Financial, Inc. (NYSE:PRU).

The study, Show Them the Value , found more workers feel their employers are cutting back on benefits, a perception that negatively affects their attitudes toward the value of the benefits.

“Employees must first be aware of the benefits, and really understand them to appreciate the value of those benefits,” said Lori High, president of Prudential’s Group Insurance business. “And, for benefits to have a positive effect on an employer’s recruiting and retention results, they must be thoroughly explained and promoted throughout the organization.”

Show Them the Value provides insight from benefits plan participants, benefits plan sponsors, and benefits brokers and consultants. High said the findings can be used to help employees prepare for annual enrollment and to support employers’ business planning and strategy development. Additional findings on the perceived value of employee benefits include:

• A clear linkage exists between the effectiveness of employee communications and the perceived value of benefits. Workers who rate their benefits communications as ‘highly effective’ see greater value in their benefits package.
• Communications can have as much impact on worker satisfaction with benefits as the range of benefits offered or the perceived dollar amount of employer contributions.
• Those who give high marks to their benefits communications are also more favorable toward voluntary benefits or benefits where the employee pays 100% of the cost.
• A majority of employers and workers agree that existing communication efforts are not highly effective.

“Benefits budgets are under pressure so it’s important to understand the value of the total benefits package and the financial investment made by the company,” High said. “Brokers can play an important supporting role in improving the effectiveness of benefits communications and education.”

High said workers and group plan administrators are finding it difficult to navigate the myriad of benefits options and administrative details involved in selecting a group insurance plan. Prudential is addressing the varying needs of a changing and demanding workforce with employee communications that are based on employee demographics, according to High.

Prudential’s suite of voluntary benefits promotes employee choice and help employers contain costs. To support benefits administrators faced with reduced staffing, Prudential provides administration programs including absence management, return to work strategies and the support with issues relating to the Family and Medical Leave Act.

Prudential’s Show Them the Value , the last in a series of five, stems from the company’s broad Study of Employee Benefits: 2009 and Beyond report which was fielded via the Internet during April and May of 2009 and consists of three distinct surveys: one among benefits plan sponsors, one among benefits plan participants, and one among employee benefits brokers and consultants. The surveys were conducted for Prudential by the Center for Strategy Research, Inc., a Boston-based, independent, market research firm. Click here for a copy of Show Them the Value .

Prudential Financial, Inc. (NYSE: PRU), a financial services leader with approximately $641 billion of assets under management as of September 30, 2009, has operations in the United States, Asia, Europe, and Latin America. Leveraging its heritage of life insurance and asset management expertise, Prudential is focused on helping individual and institutional customers grow and protect their wealth. In the US, the company’s Rock symbol is an icon of strength, stability, expertise and innovation that has stood the test of time. Prudential's businesses offer a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds, investment management, and real estate services. For more information, please visit http://www.news.prudential.com/