Fact Sheet
Information Technology Industry

As part of the 2013 Aflac WorkForces Report, 150 respondents were Information Technology (IT) employers and 389 of respondents were IT company employees; key findings are:

  • Offering robust benefits while staying within budget/cost constraints is a top benefits challenge for 39% of IT businesses. Understanding the changing health care landscape is second-largest benefits challenge for 22% of IT businesses.
  • 54% of technology company employees at least somewhat agree that “I would prefer not to be more in control over my health care expenses and options because I will not have the time or knowledge to effectively.”
  • Additionally, 51% agree “I believe I may not adequately manage my health insurance coverage, leaving my family less protected than we currently are.”
  • 63% of IT businesses use a broker or benefits consultant to help determine benefits options, vs. 62% of financial services companies and 65% of manufacturing companies.

Thinking of my company’s major medical/healthcare plans, we plan to implement the following in the coming year…

IT Company Benefits Offerings At-A-Glance

Which of the following benefits does your company offer?

The Role of Benefits in Key HR Outcomes

Talent Attraction

62% of technology business employees say they are likely to accept a job offer with slightly lower compensation, but better benefits.

90% of workers say a benefits package is important to their willingness to refer a friend to their organization.

Satisfaction

61% of workers at IT companies say they are extremely/very satisfied with their overall benefits package.

When employees are offered voluntary insurance they are much more likely to say their current benefits package meets their needs extremely/very well (60%), compared to those not offered voluntary benefits options (45%).

Employee Well-being

29% of workers say their current benefits package only meets their family’s needs somewhat, and 6% say their benefits package does not meet their needs.

When asked if they feel fully protected by their current insurance coverage, 48% of employees at IT businesses say they only somewhat agree, and 16% say they strongly/completely disagree.

Retention

51% of employees at IT businesses are at least somewhat likely to look for a new job in the next 12 months.

Nearly half of employees (46%) say that improving their benefits package is one thing their employer could do to keep them in their job.

78% of employees agree that a well-communicated benefits program would make them less likely to leave their jobs.

Disconnects on Key Benefit Issues
Employers respond that: Employees say:
59% of employers strongly/somewhat agree that “Our workers are taking full advantage of the benefits we offer.” 49% of employees completely/strongly agree with the statement “I am taking full advantage of my employee benefits.”
Believes benefits are extremely or very influential on:
  • Job satisfaction – 58%
  • Loyalty to employer – 55%
  • Willingness to refer friends – 45%
  • Work productivity – 46%
  • Decision to leave company – 37%
Believes benefits extremely or very important to:
  • Job satisfaction – 76%
  • Loyalty to employer – 64%
  • Willingness to refer a friend – 60%
  • Work productivity – 59%
  • Decision to leave company – 53%
53% of companies strongly/somewhat agree with the statement “our workers are not adequately informed about their benefit choices” 71% of workers at least somewhat agree with the statement “I would be more informed about my benefit choices if I sat with an insurance consultant.”
65% of companies strongly/somewhat agree they “effectively communicate the value of their benefits to employees.” 50% of workers say their HR department communicates extremely/very effectively about benefits offered by their employer.
Only 5% of companies named “educating our employees about health care reform” is an important issue for their organization. 80% of workers agree “I believe my employer will educate me about changes to my health care coverage as a result of the health care reform.”
31% of companies named “having employees interested in purchasing voluntary benefits” as top challenge in offering voluntary benefits." 64% would be likely to purchase voluntary benefits if offered.
Conclusions:

The 2013 Aflac WorkForces Report finds there is strong evidence that a companies’ benefit program significantly influences employee attraction, engagement and retention. That connection couldn’t be more critical than it is for the IT industry. Competition for IT talent in today’s marketplace is high, with unemployment rates for key skills such as, Computer Hardware Engineers at 0.5 percent or Software Developers at 2.5 percent. With ongoing advancements such as cloud computing and big data analytics, the competition for skilled IT talent will be heavy. Organizations will be smart to leverage the influence of benefits on employee attraction, referrals and overall satisfaction.

Fortunately, many IT employees are very satisfied with the benefits they are offered, but are particularly aware that a well-communicated benefit program is fundamental to their willingness to stay with their current employers. With the healthcare landscape rapidly changing due to reform, IT workers will continue to expect their employers to provide them education and direction to help them navigate the changes. For the large number of employers who don’t intend to provide this education, the road to employee recruitment and retention will be a difficult one.