Benefits Status Quo
During the down economy many small businesses held the line on benefits. The study found that, overall, the percentage of small businesses offering certain benefits remained nearly the same in 2010 as in 2007.
However, the status quo may not be sufficient in a recovering economy. Approximately 50% of surveyed small business employees who are not very satisfied with their benefits hope to be working for a different employer. On the other hand, 72% of surveyed small business employees who are very satisfied with their benefits feel a very strong sense of loyalty to their employer.
“The MetLife study is a reality check for smaller employers who may still be viewing their workforce through rose-colored glasses. Economic recovery will not only present opportunities for employers but also for top performers. One area small businesses may overlook is whether their benefits programs are designed as strategically as they could be. It is not necessarily about spending more, but optimizing offerings to attain three top objectives: employee retention, increased productivity, and cost control,” said Jeffrey Tulloch, vice president, U.S. Business, MetLife.
Voluntary benefits are another option for small business employers seeking a cost-effective way to increase their benefits offerings. The study shows that approximately half of employees find it important to have benefits like life, dental, and disability insurance available to them through the workplace even if they have to pay all of the cost themselves.
Improving Employees Financial Health
While the grants awarded under The Patient Protection and Affordable Care Act (PPACA) may help stimulate small businesses to offer wellness programs, a holistic approach to employee health should also include financial health. Financial concerns can also take a toll on productivity and contribute to stress-related ailments. The study, found, however, that while the majority (77%) of small business employers do not plan to offer financial/retirement planning seminars within the next 18 months, 75% of employees who admitted their productivity was impacted by personal monetary issues would be interested in learning how to address issues that cause financial stress.
Workplace financial advice and guidance can be particularly important in addressing the challenges that Baby Boomers (born 1946-1964) in the employ of small businesses are dealing with in planning for a secure retirement. Few of this demographic (16%) said that they are on track to achieve or have already achieved the right retirement outcome. Nearly two-thirds (62%), of Baby Boomers working for small businesses are very concerned about outliving their savings, and 59% are very concerned about having to work either full- or part-time in retirement. Only 29% of this demographic feel very confident in managing their money in a 401(k) or 403(b) plan and yet these plans are more common at small businesses than traditional pension plans. For example, 19% of small business employers say they offer a defined benefit pension plan, but 61% offer a 401(k) plan.
“It can be a win-win situation when employers utilize and promote programs that can help employees become more financially secure. Employees can mitigate some of their financial stresses and obtain greater peace of mind, and employers can reap the benefits of a more productive and loyal workforce,” said Dr. Ronald S. Leopold, vice president and national medical director, U.S. Business, MetLife. “There is a business value to both a physically and financially healthy employee.”
