Also in this issue:
Group Company Myopia
Employer Attitudes toward Voluntary during the Recession
Tough Economy? It’s Conservation Time
The Product that was Supposed to Have Died!
Are We in the Voluntary Business or the Benefits Business?
Economic Lessons
Managing the Budget in Uncertain Times
Who Will Serve the Micro Group Market?
Return of Premium Term – Implications of a New Actuarial Guideline
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Spring 2009/ No. 79
Employer Attitudes toward Voluntary during the Recession
By Bonnie Brazzell
We have been conducting several different surveys recently of both brokers and carriers in the voluntary market and keep hearing some individuals (on both sides) saying that employers are not looking to add voluntary benefits right now or that employers have too many concerns and issues to even think about voluntary benefits. But, at a recent trade show, we heard quite a few carriers and brokers saying that their results so far this year have been above where they were in 2008. So what’s happening? Why are voluntary sales still growing if employers are not interested?
We believe the key is how you position things with the employer. At face value, employers may see voluntary benefits as something else to take away employee dollars—dollars that are being stretched more and more every day. But employees don’t always see it that way, and there are ways to even help free up dollars for employees.
MetLife just released their annual study on Employee Benefits Trends. This study has some very interesting findings:
- 56 percent of employees said they appreciate workplace benefits more than ever before
- 41 percent consider workplace benefits to be their financial safety net
- 33 percent are afraid that, over the next 12 months, their employer will reduce the workplace benefits they offer
These are important messages for employers to hear. And employers need to hear that voluntary products play an important role in workplace benefits. By offering voluntary benefits (and adding new ones), the employer is telling employees that their benefit needs are still at the forefront, and simply, that he/she cares about their well-being. And, to top that off, offering this value to employees adds no cost to the employer. Employers can offer robust benefits packages—usually at “group” prices—to help employees build and maintain their own personal financial safety net.
Voluntary benefit reps can also use tools such as benefits communications and benefit statements to help employers make certain that employees know exactly what benefits are offered and the value of those that are employer-funded. Voluntary benefit reps can also work with the employer and the account’s broker to free up dollars through medical benefit plan redesign and by using flexible spending accounts, healthcare reimbursements accounts, or health saving accounts.
So, are employers not interested in voluntary benefits today? If they aren’t, it may be because no one has explained how these benefits help them and their employees solve problems.
For help in evaluating how well your marketing messages are working in today’s environment, call us at (860) 676-9633.
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