PLEASE VISIT OUR SPONSORS

---

Industry News

 

Majority of Workers Believe Their Benefits Are in Line With Other Companies'

Monday March 16, 2009

 

Marlborough, Mass. — March 13
Fidelity Investments’ Consulting Services business announced the results of a worker sentiment study that found that 72 percent of people believe that the benefits they receive at work are better than or as good as what most other companies offer. However, most feel the value of benefits has dropped, with 61 percent of workers reporting they are paying more for benefits, but getting less or the same as they did in 2007.

Most workers surveyed underestimate the employer cost of providing health insurance to employees. A majority (53 percent) believe their employers pay less than $5,000 annually per person to provide health insurance. In fact, health plans typically cost employers $5,000 to $15,000 per employee on an annual basis.

“Health care benefits are critically important to most employees, and yet many don’t understand how expensive it is for companies to provide these benefits,” said Brad Kimler, executive vice president of Fidelity’s Consulting Services business. “In the current economic climate, this data suggest that employers have a great deal to gain from establishing a more comprehensive ongoing dialogue with employees about the value and cost of all their benefits and compensation programs.”

In the study, workers cited health insurance, retirement savings plan matching contributions and dental insurance as the three most important benefits, with health insurance ranking as No. 1.

Employer-Provided Benefits of the Future
The study found almost half of American workers surveyed (48 percent) believe their benefits, including health insurance, retirement savings plans and pension plans, won’t be provided by their employer 10 years from now.

The study found that 30 percent of workers surveyed think they will be responsible for obtaining their own benefits by 2019, 18 percent think the government will provide benefits, 28 percent think employers will still provide benefits to their workers, and 24 percent are not sure. Yet, benefits are so critical to today’s employees that one out of four surveyed said they are working more to receive the accompanying benefits than to receive the income.

Despite many employees foreseeing a future in which health care and other benefits would not be tied to their employer, eight out of 10 of those surveyed still would opt to have health care benefits provided through their jobs rather than receive a cash payment to manage their own health care needs.

Unemployment Concerns
When asked what their biggest concern would be if they lost their jobs today, 57 percent of workers surveyed said it would be being able to pay their rent or mortgage. Losing health care insurance ranked No. 1 for 25 percent of workers. Paying for other living expenses, including childcare, would be the top worry for 6 percent of workers. Paying off debt would be most important to another 6 percent surveyed.

Paying or saving for college would be the biggest worry for 1 percent of workers. An additional 3 percent of employees would be most concerned about having to tap their retirement savings, and 2 percent had no concerns if they lost their jobs today.

The Methodology
Data for the Consulting Services’ survey was collected Jan. 7-13 by independent market research firm Synovate and is based on responses from a national sample of 676 adults who have employer-provided health insurance coverage and work at companies with at least 100 employees.

For more info: http://benefits.fidelity.com/prod/consulting.htm