Fact Sheet: Large Employees
Large Company Benefits Trends (500+ employees)

As part of the 2013 Aflac WorkForces Report, 668 large employers (500+ employees) and 2,683 large company employees were surveyed; key findings are:

  • Offering robust benefits while staying within budget/cost constraints is a top benefits challenge for 40% of large businesses. Understanding the changing health care landscape is second-largest benefits challenge for 23% of large businesses.
  • 54% of large 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 manage it.”
  • Additionally, 53% agree “I believe I may not adequately manage my health insurance coverage, leaving my family less protected than we currently are.”
  • 56% of large businesses use a broker or benefits consultant to help determine benefits options, vs. 55% of small-sized companies and 71% of mid-sized companies.

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

Large 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

58% of large business employees say they are likely to accept a job offer with slightly lower compensation, but better benefits.

87% of workers say a benefits package is important to their willingness to refer a friend to their organization.

Satisfaction

Only 58% of workers at large 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

30% of workers say their current benefits package only meets their family’s needs somewhat, and 9% 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 large businesses say they only somewhat agree, and 17% say they strongly/completely disagree.

Retention

46% of employees at large businesses are at least somewhat likely to look for a new job in the next 12 months.

Nearly half of employees (44%) say that improving their benefits package is one thing their employer could do to keep them in their job.

79% 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:
  • 55% of employers strongly/somewhat agree that “Our workers are taking full advantage of the benefits we offer.”
  • Only 44% 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 – 60%
    Loyalty to employer – 56%
    Willingness to refer friends – 42%
    Work productivity – 42%
    Decision to leave company – 38%
  • Believes benefits extremely or very important to:
    Job satisfaction – 80%
    Loyalty to employer – 66%
    Willingness to refer a friend – 56%
    Work productivity – 64%
    Decision to leave company – 57%
  • 28% of companies strongly/somewhat agree with the statement “our workers are not adequately informed about their benefit choices”
  • 75% 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.”
  • 45% 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.
  • 77% 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.”
  • 23% of companies named “having employees interested in purchasing voluntary benefits” as top challenge in offering voluntary benefits."
  • 60% would be likely to purchase voluntary benefits if offered.
Conclusions:

Many of today’s leading companies are tailoring their benefits package to suit the varying needs of an increasingly diverse workforce. With larger organizations comes a greater, more complex mix of generations of workers.  HR professionals will need to develop customized strategies to meet the requirements of each segment. For example, voluntary life insurance policies can be customized for young, single workers who don’t have many financial obligations or for older workers who are trying to save for retirement.

However, to ensure a high return on investment in added benefits, consider boosting the frequency of communication to a minimum of six times a year. Think out of the box and pursue alternative ways to communicate, such as texting, webinars, tweets, etc. Be sure to implement more effective marketing and education outreach to workers. It’s not only good business sense, but it’s also financially savvy when you consider that 41 percent of workers agree that they would be less likely to leave their jobs if they were well informed about their benefits.