Benefit plans one of top ways to increase employee loyalty and engagement according to recent study by Wells Fargo Insurance
As companies focus largely on maintaining employee productivity and
controlling costs when designing its benefit programs, according to the Employee
Benefits Trends Survey released today from Wells
Fargo Insurance, part of Wells
Fargo & Co (NYSE:WFC), benefit plans can also greatly improve
employee loyalty. According to the survey, C-suite executives and
benefit managers cite managing costs and maintaining employee
productivity as the most important goals in both the short (12-18
months) and long term (five years). Additionally, C-suite executives (88
percent) and benefit managers (85 percent) agree that benefit programs
have the most impact on improving employee loyalty as well as increasing
employee engagement and lowering company medical costs.
Wells Fargo Insurance designed the Employee Benefits Trends Survey to
better understand how companies are responding to healthcare reform
requirements while also providing their employees with competitive
benefits programs. Surveying C-suite executives and benefit managers
from companies across the U.S. with more than 50 employees, the survey
generated 950 responses and covered topics including cost containment
strategies, employee attraction and retention, outlook on healthcare
reform, and financial impact of employee health.
“As the benefits landscape continues to evolve, employers face
challenges and opportunities as they adapt to new requirements,” said
Dan Gowen, national practice leader with Wells Fargo Insurance’s
Employee Benefits National Practice. “It’s a balancing act for many
companies as they look to maximize employee productivity, retention and
morale while also controlling cost - a factor we expect to become even
more important as companies prepare for the Affordable
Care Act (ACA) excise tax in 2018.”
With 2015 underway, most companies have made key changes to their
benefits plans. According to the survey, seven in 10 companies have made
or are in the process of implementing changes for covering spouses as
well as to increase the percentage that employees must contribute to
premiums. Six in 10 have also changed or are in the process of changing
options for the type of plan offered. While most employers have not yet
made changes such as moving from fully-insured to self-funded or using
private exchanges, the survey found that those decisions and offering a
high deductible plan, are the top initiatives now under consideration.
As companies look ahead, they remain focused on managing costs, wellness
offerings and family coverage. With wellness leading the list, C-suite
executives and benefit managers will focus on coverage of family
members, employee attraction and retention during the next five years.
“We keep our employees well-informed in all aspects of where we are
headed as a company, and offer incentives for them to continue to be
part of our company. Benefits are the number one issue when it comes to
employment with our company,” noted a survey respondent.
The focus on wellness is very strong with 93 percent of C-suite
executives surveyed anticipating an increase or improvement in the
importance of wellness offerings. Half of the companies that have
considered or are considering a change in wellness offerings said they
are doing so as a result of the ACA. Finally, 55 percent of employers
will have implemented incentives and/or penalties in 2015 for wellness
compliance.
“Employers who take a more coordinated approach to integrating wellness
programs with their existing employee benefits and productivity
solutions will be well-positioned to achieve growth and cost savings,”
added Gowen.
For more information and additional findings from Wells Fargo
Insurance’s Employee Benefits Trend Survey, visit https://wfis.wellsfargo.com/services/employeebenefits/Pages/Research.aspx.
About Wells Fargo Insurance
Wells Fargo’s Employee
Benefits National Practice helps customers with financial
underwriting and insurance, health and productivity risk management,
benefits communication and administration, and compliance with
healthcare reform.
Wells Fargo Insurance provides solutions for a wide range of customers,
including retail consumers, high net worth individuals, small
businesses, as well as middle market and large corporate customers.
Wells Fargo Insurance writes or places $10 billion of risk premiums
annually in property, casualty, benefits, international, personal lines,
and life products and also includes the nation’s largest crop insurance
provider, Rural Community Insurance Services (RCIS). For more
information on Wells Fargo Insurance visit www.wellsfargo.com/wfis.
About Wells Fargo & Company
Wells Fargo & Company (NYSE: WFC) is a nationwide, diversified,
community-based financial services company with $1.7 trillion in assets.
Founded in 1852 and headquartered in San Francisco, Wells Fargo provides
banking, insurance, investments, mortgage, and consumer and commercial
finance through more than 8,700 locations, 12,500 ATMs, and the internet
(wellsfargo.com), and has offices in 36 countries to support customers
who conduct business in the global economy. With approximately 265,000
team members, Wells Fargo serves one in three households in the United
States. Wells Fargo & Company was ranked No. 29 on Fortune’s 2014
rankings of America’s largest corporations. Wells Fargo’s vision is to
satisfy all our customers’ financial needs and help them succeed
financially. Wells Fargo perspectives are also available at Wells
Fargo Blogs and Wells
Fargo Stories.