bs 8.06 employer survey e - benefitspro · 2011-03-11 · on benefits. employer survey 2006 how...

Survey{2006}

Employer

BS 8.06 employer survey e 7/14/06 9:43 AM Page 30

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 �

BS 8.06 employer survey e 7/13/06 4:01 PM Page 31

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.

BS 8.06 employer survey e 7/13/06 4:01 PM 2



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

�


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Circle #125 on the Reader Service Card on page 41 or visit www.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


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Who would you prefer tocontact you about addingvoluntary benef i ts?

WH O’S CALLI N G?


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



Call us and get in the game!

888•345•3189

IS THE RIGHTPBM ON

YOUR TEAM?but net


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?




bs 8.06 employer survey e - benefitspro · 2011-03-11 · on benefits. employer survey 2006 how...

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