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Perspectives of Employers and Employees on the Current Benefits Environment Reveal Surprising Shared Opinions and Also Distinct Discrepancies

Posted on: Monday, 27 August 2007, 09:13 CDT

In 2005 and again this year, Delta Dental of Missouri published the results of its study of Midwest employees and Missouri employers (Human Resources decision-makers), titled, "Inside Health and Dental Benefits" (See Delta Dental_Attachment 1). The study was conducted at Delta Dental's request by an independent research firm to better understand how employees and employers view the current benefits environment. The goal of the study was to provide insights for employers that would enhance their decision-making on healthcare benefits strategy and design.

It is no secret that the state of our $2 trillion healthcare economy and the escalating costs of healthcare and health benefits are topics of considerable interest for employers and employees alike. Most experts agree that some changes in the healthcare system must occur; but when, how and by whom remains unclear. However, it seems certain that employers and employees will play an important role in the process. Thus, Delta Dental believed the time was right to gain more insights on how well employers and employees are collaborating on benefits and on improving health status.

"We believe that employers and employees have the potential to become powerful collaborators capable of positively impacting the benefits industry and the health status of companies and communities," stated Steve P. Gaal, III, President and CEO of Delta Dental of Missouri. "A partnership of this type could help slow the rate of increase in healthcare costs, improve health, and engineer benefits that help satisfy and retain employees. There is, of course, no one right way to tackle this opportunity, but we hope that the insights from our survey will help employers and employees identify common ground to build upon."

Insights developed from Delta Dental's survey, which was conducted by the St. Louis research firm Marketing Horizons, a division of Market Probe, found distinct discrepancies and some surprising similarities among employers and employees with regards to their views on benefits.

Differing Opinions

A greater percentage of employees (compared to employers) feel that dental and vision benefits, as well as life insurance and long-term disability are "absolutely essential" (See Delta Dental_Attachment 2).

Employers' (as indicated by HR managers) satisfaction with the financial and health-related benefits offered by their companies were significantly higher than employees' satisfaction with benefits received.

A majority of employers believe that they are adequately engaging employees in benefits design and planning, and yet, only a small minority (about one in five employees) perceives they are adequately engaged in the process. Furthermore, nine out of 10 employees indicate they would be happy to devote time and energy to this task in collaboration with their employers (See Delta Dental_Attachment 3).

Employees are more concerned with having funds for unplanned emergencies and for retirement than employers anticipate.

Similar Opinions

Both employees and employers consider health benefits to be an important factor in attracting and retaining employees. Both are also receptive to the concept of rewarding employees for maintaining good health with lower premiums or benefits incentives and agree that the federal government should stay out of employee health benefits administration.

Employers and employees share receptivity (with employers somewhat more receptive than employees) to a number of cost control initiatives, including: accessibility to the latest health information, the reduction of co-payments for generic drugs, choice between multiple plans with a variety of pricing options and incentives for those who actively maintain health.

Employers and employees are both open to wellness initiatives, though priorities somewhat differ. Employees indicate they are most likely to take advantage of free gym memberships, followed by an on-site gym, flu shots, blood pressure testing and cholesterol screenings. Employers, on the other hand, indicate that they are most likely to offer on-site flu shots, followed by blood pressure testing, cholesterol screenings, smoking cessation and diet and weight-loss support.

Both tend to agree that it would be fair to reduce premiums for those who actively maintain good health; and that, as more costs are shifted to employees, employees should have greater voice in benefits design and selection.

Both parties are somewhat skeptical that a good long-term solution to the rising costs of healthcare will be identified (See Delta Dental_Attachment 4).

For the employee survey, 1,023 internet-based employee interviews were conducted with full-time Midwest region employees involved in their families' benefits decision-making. States of residence included Missouri, Kansas, Illinois, Iowa, Arkansas and Nebraska. The margin of error at a 95 percent confidence level averages three percent. The employer survey was conducted via telephone. A hundred and fifty interviews with HR decision-makers in companies headquartered in Missouri with at least 50 full-time employees took place. The margin of error at a 95 percent confidence level averages eight percent. Respondents for both surveys were randomly selected. Complete survey results are available for interested HR managers, benefits managers, CEOs, chief financial officers, strategic planners and producers by calling Katie Gaeng of Delta Dental of Missouri at (800) 392-1167, extension 2776.

Delta Dental of Missouri is the group dental benefits plan of choice for more than 1,300 businesses and over 1 million members and has been recognized for its excellent service performance. Delta Dental of Missouri is a member of Delta Dental Plans Association, a network of independent, not-for-profit dental service corporations and the leading provider of dental benefits in the U.S., serving over 50 million Americans in over 88,000 businesses throughout the nation.

Source: Business Wire

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