a defining time: pivotal choices that will define future success
TRANSCRIPT
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WorkForces Report: Marketing Opportunities
2013 Aflac WorkForces Report
A Defining Time:Pivotal Choices That Will Define Future Success
Z130395 5/13
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Current realities
• Unprecedented change ahead
• Crucial year for employers
• Confusion levels and costs rising
• Employee expectations evolving
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Current realities: Rising insurance costs
Source: Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 2003-2013
Average Annual Health Insurance Premiums and Worker Contributions for Family Coverage, 2003-2013
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Current realities: Rising health care costs
• Mean charge for a hospital stay for a heart attack is $65,427 (U.S. Department of Health & Human Services)
• Some new cancer treatments can cost $10,000 per month (American Cancer Society)
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Current realities: Low savings rate
Source: Bureau of Economic Analysis
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About the
Aflac WorkForces Report
• Groundbreaking research designed to uncover timely benefits trends that stand to impact companies – now and in the future
• 3rd annual study includes responses from nearly 5,300 workers and 1,900 HR-decision makers & business owners surveyed in January 2013
• Nationally representative sample of employees and employers, conducted by Research Now
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Latest findings
• Workers not ready for changes to health care
• Benefits represent a competitive advantage
• Engagement and communications are crucial
• Voluntary insurance in demand
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EMPLOYER PERSPECTIVES
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Today’s employers:
• Concerned about rising costs• Lack understanding about reform• Have done little to prepare for changes• Don’t plan to communicate and engage
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Top HR challenges for employers
34%Retaining employees
37%Improving worker productivity
55%Controlling health care costs
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Top benefits challenges for employers
40%Understanding the health care landscape
19%Understanding what benefits employees want
68%Offering robust benefits while staying within budget
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Health care reform: Confusion
• 27% understand health care reform
• 13% say educating employees about health care reform is a concern
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EMPLOYEE PERSPECTIVES
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Today’s workforce:
• Financially unprepared and not protected• In denial about health realities• Aren’t engaged in benefits decisions• Fear changes to health system
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Financially unprepared
57% have NO financial plan or goals in place
43% NOT prepared to pay for out-of-pocket
expenses
Only 31% feel confident in financial future
26% have less than $500 to pay for out-of-pocket
expenses
Workers Financially Unprepared
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Not protected
27%dealing with personal or
family health issue
Only 31% feel well protected by their
current insurance coverage
72% want more benefits options
35%are just SOMEWHAT
SATISFIED with benefits;
11% NOT AT ALL satisfied
Workers NotFeeling Protected
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In denial
Only 13% think they/family will be diagnosed
with a serious illness
6% say they/family will likely be in a car accident
56% say they/family will NOT require a long-term
hospital stay
55% say they/family will NOT be diagnosed with a
chronic illness
Workers Not Facing Health/Accident Realities
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84% satisfaction
75%decisionto leave
80%refer a friend
81%loyalty
Benefits matter
59% of employeesare likely to accept a job with lower pay,but better benefits
INFLUENCE OF BENEFITS
PACKAGE
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BEST PRACTICES
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Best practices
BenefitsOptions
WellnessTotal Health
BenefitsMarketing
EngagementBest
Practices
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THE VOLUNTARY ADVANTAGE
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Desire for voluntary benefits
59% of employees would be likely to purchase voluntary insurance benefits if they were offered
37%say because “it offers me more options.
33%say to “give me more comprehensive insurance coverage.”
30%say “to meet my needs.”
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Impact of voluntary benefits
46% 53% 34% 48%55% 65%
46%62%
58%73%
53%69%
Job Satisfaction
Not offered Offered Enrolled
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THE ROAD AHEADPATH FORWARD
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• Understand employee expectations
• Assess benefits options and implications
• Weigh long-term impacts of decisions
• Plan for implementation and integration
• Engage workers early and often
Crucial steps: Companies
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• Aflac.com/Insights
• GetTheRealCost.com
• Twitter: @Aflac @KipHavel
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