STUDY OF EMPLOYEE BENEFITS: 2006 & BEYOND - Prudential

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Teach Them Well Benefits Education/Communication Needs to be More Effective In general, plan sponsors feel there is considerable room for improving the effectiveness of their employee benefits education and communication materials. According to employers, the education/communication materials for their medical, dental, and defined contribution plans—arguably more complicated benefits—are more effective than those for life, disability, and long-term care plans. In fact, one in five rate their current communication materials for their non-medical insurance programs as “ineffective,” while four in ten rate the effectiveness as no better than “moderate.” With the increased complexity and options for insurance products, education and information must catch up. Benefits providers who can develop education/communication campaigns that motivate and educate employees can provide a much needed service. Special attention should be paid to pre-enrollment communications, which can be used to convey the value of the employer’s benefit package and help boost participation rates. PLAN SPONSOR ASSESSMENT OF THE EFFECTIVENESS OF BENEFITS EDUCATION Ineffective 19% 17% 18% 11% 13% 11% Moderately effective Highly effective 39% 41% 44% 33% 37% 37% 42% 42% 38% 56% 50% 52% Disability Life LTC Medical Dental 401k 14
Most Plan Sponsors Do Not Require Carriers to “Step Up” to Assist with Benefits Education/Communication Often, benefits providers are experts at communicating all aspects of an employee benefit program. They should be well versed on all legal issues and have experienced associates able to provide effective written and verbal communications. While many plan sponsors may desire to customize or fine-tune the final materials, benefits providers should be able to create an effective foundation of information. However, among plan sponsors who are dissatisfied with their existing materials, most are not “highly interested” in obtaining assistance from benefits providers, especially for group life and disability plans. By comparison, 47% rely on providers for help communicating 401(k) plans. Yet fewer require the same provider assistance for disability, life, or long-term care insurance benefits. More effective communication may help employees better understand and appreciate the real value of these programs, as well as help educate employees about how these benefits can provide needed protection for themselves and their families. INTEREST IN CARRIER HELP WITH BENEFITS EDUCATION/COMMUNICATIONS AMONG EMPLOYERS WHO RATE THEIR EDUCATION/COMMUNICATION EFFORTS “INEFFECTIVE” 74% 71% 65% 57% 67% 53% Not highly interested (1–5 of 7 point scale) Highly interested (6–7 of 7 point scale) 43% 47% 26% 29% 35% 33% Disability Life LTC Medical Dental 401k 15
Page 1 and 2: PRUDENTIAL’S GROUP INSURANCE STUD
Page 3 and 4: Welcome The cost of employee benefi
Page 5 and 6: Methodology This study surveyed a b
Page 7 and 8: Benefits Matter Eight in Ten Plan S
Page 9 and 10: Commitment to Benefits Spans Most C
Page 11 and 12: Benefits Decision Making Is Increas
Page 13 and 14: The Gap Among Top Financial Concern
Page 15: Voluntary Benefits on the Rise, But
Page 19 and 20: Plan Sponsors and Participants Are
Page 21 and 22: Employee Concerns Extend Beyond Fin
Page 23 and 24: Interest in Lifestyle Benefits Vari
Page 25 and 26: Positive Online Outlook Online Tool
Page 27 and 28: Web Technology is Empowering Employ
Page 29 and 30: Plan Sponsors Want Enhanced Perform
Page 31 and 32: Criteria for Progressive Plan Spons
Page 33 and 34: Progressives Are More In Sync with
Page 35 and 36: Progressives Also Outpace Other Com
Page 37: Progressive Employers Value Persona
Page 40 and 41: Summary of Key Findings Theme One:
Page 42: About Prudential Financial Currentl

STUDY OF EMPLOYEE BENEFITS: 2006 & BEYOND - Prudential

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