Survey { 2 0 06 } Employer
Survey{2006}
Employer
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Competition has been intense in theworksite market for a number of yearsand it shows no signs of letting up.More and more carriers — as well as
distributors — are entering the market with avariety of products. To stay ahead of thegame, it is important that carriers really un-derstand their customers.
In worksite, this includes three separatecustomer or stakeholder groups: the brokeror producer, the employer and the employee.Carriers that wish to succeed in the worksitemarket must consider the needs, wants andexpectations of all three groups when devel-oping marketing plans and strategies.
Eastbridge Consulting Group has been apartner to carriers to help them understandthese constituencies for the past 17 years. Weare now launching our latest consortiumstudy designed to explore and update ourdata about employer’s attitudes and opinionson voluntary products.
The study culminates in a comprehensive,written report of key findings and recommenda-tions to guide marketing strategy development.
Specifically, the report includes answers tothe following questions:● What types of benefits (voluntary and
employer-paid) do employers offer? Andhow do they decide what to offer?
● What types of changes have occurred in thevoluntary benefits offered?
● How likely are employers to add more vol-untary products?
● How are changes in the employer’s overallbenefit plan impacting voluntary productsand sales? Are employers migrating plansto employee-paid from employer-paid?
● What impact is “consumerism” having onbenefits?
● What changes are likely in the future? ● What progress has been made in manag-
ing benefits costs? ● How do employers choose a voluntary car-
rier? What role do advisors (i.e., brokers)play in the decision-making process?
● What do benefits managers expect fromcarriers?
● What makes for an “ideal” employerexperience?
● Would they prefer to have fewer (or one) carri-ers for all (or more) coverages?
● What is the value of benefit communica-tions, benefit statements, combiningenrollments, etc.?
M ETHODOLOGYThe study took place in two parts so as togather both quantitative and qualitativedata. Both used telephone-based surveys togather the data. Our overall quantitativeemployer sample included roughly 500 com-pleted interviews with a representative sam-ple of small, medium and large employers.
We then conducted in-depth qualitativeinterviews with 50 plan administrators.
— Bonnie BrazzellEastbridge Consulting Group
VOLUNTARY BENEFITS —THE EMPLOYER VIEWPOINT �
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32 Benefits Selling • August 2006 • BenefitsSellingMag.com
�
How l ikely are you to make any of the fol lowing changesor modif icat ions to your benef i ts program in the next 18months due to r is ing benef i t costs?
0% 10% 20% 30% 40% 50%
Increase EE contribution
Increase deductibles
Introduce HDHP and HSA
Move benefits to voluntary
Drop benefits
Move to defined contribution
5%
3%
6%
18%
37%
42%
Percent of employers “likely” or “very likely”
CHAN G E S COSTLY
0% 20% 40% 60% 80% 100%
Help attract and retain employees
Increase employee job satisfaction
Address diverse employee needs
Help employees with work/family balance
Help employees plan for their financial future
59%
63%
67%
81%
85%
Percent saying “important” or “very important”
40%surveyed
spend between11 percent and
24 percentof payroll
on benefits.
Employer Survey 2006
How important are each of these i tems as goals for your benef i ts program ?
FI E LD G OALS
71 percent of employers that offer voluntary include employee feedbackand input in making their decisions about what products to offer.
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34 Benefits Selling • August 2006 • BenefitsSellingMag.com
Employer Survey 2006
Who is responsible for the benef i t decis ions?
0% 20% 40% 60% 80% 100%
President/owner – 4%
Financial officer – 9%
HR Officer/manager – 85%
Other – 1%
D E CI S I ON MAK E R S
What role does a broker p lay in your benef i t decis ions?
0%
10%
20%
30%
40%
50%
Broker is trusted advisor and we do what he/she advises
We don’t use a broker
Broker investigates options and makes recommendations
Broker investigates options and presents to us to decide
Broker does comparison shopping but we do due diligence and make the decision
45%
39% 38%
21%18%
B R OK E R H E LP
�
BS 8.06 employer survey e 7/13/06 4:01 PM Page 34
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Circle #125 on the Reader Service Card on page 41 or visit www.benefitssellingmag.com
36 Benefits Selling • August 2006 • BenefitsSellingMag.com
Ideal ly, f rom whom would youprefer to purchase benef i ts?
0%
10%
20%
30%
40%
50%
60%
Direc
t – 26
%
Comm
ission
ed br
oker
or ag
ent –
53%
Other–
5%
Busin
ess a
ssoc
iation
– 2%
Fee-b
ased
cons
ultan
t or b
roker
– 11%
PE R S ONAL PR E FE R E N CE
�Employer Survey 2006
65%say employeeinterest in aproduct is an
important factorin their decisions
to offer it.
BS 8.06 employer survey e 7/14/06 10:06 AM Page 36
Employer Survey 2006
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Circle #127 on the Reader Service Card on page 41 or visit www.benefitssellingmag.com
Who would you prefer tocontact you about addingvoluntary benef i ts?
WH O’S CALLI N G?
�Employer Survey 2006
5%
53%7%
11%
24%
Broker that offers our medical
Broker that offers other benefits
Broker that specializes in voluntary
It doesn’t matter
Other
BS 8.06 employer survey e 7/13/06 4:01 PM Page 38
40 Benefits Selling • August 2006 • BenefitsSellingMag.com
Call us and get in the game!
888•345•3189
IS THE RIGHTPBM ON
YOUR TEAM?but net
Circle #129 on the Reader Service Card on page 41 or visit www.benefitssellingmag.com
None of these
P&C insurance
Core group products
Pension or retirement
Medical coverage
32%
22%
5%7%
35%
LI N E U P CHAN G E S
58% expect thepercent of
payroll will goup in the next
coupleof years.
What other product l inesdo you have with thebroker who handles mostof your voluntaryproducts?
�Employer Survey 2006
Circle #130 on the Reader Service Card on page 41 or visit www.benefitssellingmag.com
BS 8.06 employer survey e 7/13/06 4:01 PM Page 40