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June 05, 2007
GUARDIAN STUDY REVEALS WELLNESS/BENEFITS DISCONNECT:
Smaller Companies Value Wellness Programs, but Fall Short on Implementation
Small and Midsize Employers More Likely to Accept One Size Fits All Benefits Packages, Despite Citing Retention as a Major Challenge
NEW YORK, June 05, 2007 — A new report, Benefits and Behavior: The Voice of American Business Owners and Benefit Decision Makers Today, from The Guardian Life Insurance Company of America (Guardian) revealed gaps between business owner/decision maker beliefs about wellness and employee benefits programs and actual business practices.
Smaller companies trail larger businesses in the implementation of wellness programs despite widespread beliefs by employers and benefit decision makers at companies of all sizes that wellness programs have value.
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82% of small employers, 90% of midsize employers and 99% of large employers see value in implementing wellness programs. Yet only 57% of the small businesses that value wellness programs have implemented some type of plan. This is compared to greater adoption in larger companies: 79% of the midsize businesses and 90% of large businesses that value wellness programs have one in place.
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"A large portion of U.S. health spending is due to conditions that are controllable," said Susan O'Connor, assistant vice president, Guardian Group Medical. "Wellness programs can have a positive long-term impact on a company's bottom-line and collectively reduce medical spending by helping consumers to change behaviors that have contributed to the cost of healthcare. According to the Small Business Administration, small businesses employ 50% of the country's private sector workforce. We are losing the opportunity to connect a large section of the U.S. workforce to cost saving wellness programs if we do not fully engage smaller employers."
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According to the Guardian study, among employers that see a value in wellness programs, 68% of small employers, 78% of midsize employers and 69% of large employers want their insurance carriers to play a role in helping their company implement wellness and prevention programs to help reduce absenteeism and healthcare costs.
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"Wellness programs do not have to be expensive to implement," added O'Connor. "It makes sense for most companies of all sizes to offer some type of activity that encourages workers to lead healthier lives. Leading edge insurance companies embed wellness programs into their insurance plans at no additional costs and offer incentives to companies that encourage their employees to live healthier lifestyles."
Another disconnect revealed by the survey was around the issue of benefits flexibility.
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Larger companies (82%) widely believe that it is important to tailor their benefits package to meet the needs of individual employees. However, small (59%) and midsize (55%) companies are significantly less likely to agree.
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Small (41%) and midsize (45%) employers are significantly more likely to accept the idea of a one size fits all benefits package, compared to larger companies (17%). Yet small businesses rate retaining and attracting employees as one of their most serious business challenges. Retaining and attracting talent was third on the list of top ten challenges with a rating of 5.7 on a ten-point scale.
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"In an age of growing workforce diversity, one-size fits all benefits packages often make it challenging to retain and attract employees," said Steve Toby, director, Guardian Worksite Planning. "Voluntary benefits, which are employee paid and often offered at a discounted group price, and executive or carve-out benefits that meet the unique needs of key talent, can help small businesses to offer a robust benefits package while controlling costs. Studies show that employees are willing to assume more responsibility for their benefits if they are given more choice and access to products and services that meet their distinct needs."
Healthcare
When it comes to the cost of healthcare there were no gaps or discrepancies. Across the board, respondents believe that controlling medical costs is the most serious immediate and long-term business challenge.
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When asked to rate the seriousness of various business challenges, controlling medical costs was rated the biggest challenge by all business sizes — small businesses gave an average rating of 7.3 on a ten-point scale, mid size business averaged 7.6 and large businesses averaged an 8.2.
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Considering the business environment five years from now, controlling medical cost remained the top challenge with a slight increase across the board: 7.7 for small businesses, 8.2 for mid-size companies and 8.4 for larger employers.
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An independent New Jersey-based research firm conducted the survey for Guardian. 300 telephone interviews among a national sample of employee benefits decision makers were conducted from February 20 through March 7, 2007.
Guardian is celebrating the 50th anniversary of its Group employee benefit business. In honor of this milestone the company has issued a series of educational surveys and reports to help employees, employers and benefit decision makers better understand how they can jumpstart their financial lives, improve recruitment, retention and employee satisfaction by maximizing the use and power of their workplace coverage. Two reports currently available in the series include:
| Benefits and Behavior: The Voice of American Business Owners and Benefit Decision Makers Today, The report can be found at www.GuardianBenefits.com |
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About Guardian
Founded in 1860, The Guardian Life Insurance Company of America, New York, NY (Guardian) is one of the largest mutual life insurance companies in the United States. As of December 31, 2006, Guardian and its subsidiaries had $39.5 billion in assets (on a consolidated statutory basis). With more than 5,000 employees and 3,000 financial representatives, as well as more than 80 agencies nationwide, Guardian and its subsidiaries protect individuals, businesses, and their employees with life, disability, health, long-term care, and dental insurance products, and offer 401(k), annuities and other financial products and trust services. More information about Guardian can be obtained at: www.guardianlife.com.
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