A new MetLife study found that while most employers are not cutting back on employee benefits, they are largely not increasing the available benefits, even as employees indicate they would be willing to take on more of the cost of those benefits.
Business advocates said they expect Connecticut employers to continue to hold the line on benefits available to their employees as the cost of health care coverage for the typical employer continues to rise by more than 10 percent annually.
Ken Comeau, vice president with the Connecticut Business and Industry Association, estimated that 65 percent of the state”™s residents with health insurance coverage receive their policies through an employer.
After health care coverage, which Comeau said is by far the most commonly offered benefit, dental and life insurance coverage are the next most popular benefits offered by Connecticut employers.
However, Comeau said, the rising cost of health care has added to the budgetary strain of all businesses and particularly small businesses.
“At this point, Connecticut businesses still look at health insurance as the number one benefit that they offer,” Comeau said. “That”™s probably the first thing and because it”™s one of the most expensive benefits, that determines the budget for the balance of the benefits to be offered.”
Seventy percent of employers surveyed by MetLife said they intend to maintain their current level of employee benefits, with 30 percent saying they would maintain the available benefits by shifting some of the costs to their employees.
CBIA members are able to offer their employees various benefits options through the CBIA Employer Connection program.
Comeau said benefits available through the program range from traditional health care coverage to 401(k) plans, disability coverage and even home and auto insurance.
More than 5,000 employers subscribe to the CBIA Health Connections program, he said.
The MetLife study”™s findings show a strong correlation between overall job satisfaction and the available benefits ”“ even if those benefits are not subsidized by an employer.
Representatives of more than 1,500 employers and more than 1,400 full-time employees were surveyed last fall as part of MetLife”™s 10th annual Study of Employee Benefits Trends, which was conducted by GfK Custom Research North America, with the findings released in August.
Of the interviews, 944 were conducted with representatives of companies with fewer than 500 employees, and 685 were conducted with employees working for companies with fewer than 500 employees.
Among Generation X and Generation Y employees, 72 percent who were “very satisfied” with their benefits said they were more likely to feel a very strong sense of loyalty to their employer, compared with just 46 percent of Gen X and Gen Y employees overall who said they were likely to feel a strong sense of loyalty.
Notably, one in three employees surveyed said they hoped to be working for a different employer this year.
Two-thirds of the Gen X and Gen Y small business employees who were surveyed said they would be willing to pay more of the cost of benefits rather than lose them, while 54 percent of all Gen X and Gen Y workers said they would be interested in having a wider selection of benefits options even if it would mean paying all of the cost for those benefits.
The voluntary benefits sought range from life and dental insurance policies to disability, critical illness and home and auto policies.
Larger businesses have seemingly adjusted in response to the growing desire among employees to have the option of buying voluntary benefits packages through the workplace.
The percentage of companies with more than 500 employees identifying voluntary benefits as a key element in their overall benefits strategy increased to 57 percent in the current study compared with 43 percent a year ago.
Among businesses with fewer than 500 employees, 31 percent identified voluntary benefits as a critical element to their overall strategy, up from 26 percent last year.
