Month: June 2019

Happy employees are better employees. They’re more engaged in their work, more loyal to their employers, and make more meaningful contributions toward company goals. That’s not surprising.

However, today’s employees have different expectations for what makes them happy. In an always-on world, where work and life blend together, employees are looking for fulfillment in their work, personal lives, and relationships. Employers who recognize their employees’ need for flexibility and support, both at the workplace and beyond, are poised to reap the benefits in a competitive hiring market.

MetLife’s recently released 17^th Annual U.S. Employee Benefit Trends Study dives into the new work-life world to examine how employers can attract, engage, and retain the best talent by helping employees thrive in work and in life. This year’s research focuses on five key findings and their implications for employers, employees and intermediaries:

1. When employees are supported as individuals, they are more engaged
2. Finding purpose at work is multifaceted
3. Technology is driving a new mandate for training
4. Flexible careers are reshaping the workplace
5. The gig economy can be a challenge and an opportunity for employers

Benefit strategies will play a pivotal role in helping employers and employees navigate the evolving landscape. The study’s findings offer powerful conversation starters for your client consultations.

Financial stress tops employee concerns

Everyday stress affects employee happiness and can distract from succeeding at work. Across life stages, the number one stress cited by employees is personal finances. Short-term concerns like having the money to pay bills or cover out-of-pocket medical expenses rank high. But, three of employees’ top five financial concerns relate to longer-term retirement worries.

One in three employees admits to being less productive at work because of financial stress. At the same time, two in three employees say the benefits available to them through the workplace help to reduce their financial concerns.

Employees value benefits options

Seventy-three percent of employers believe employees are satisfied with their benefits. That’s a slight over-estimation when compared to 67 percent of employees who say they’re satisfied with their workplace benefits. Notably, the employee percentage is a decline of four percent from 2018.
One area where employers and employees may not be on the same page is about benefits choices. Employees want benefits to meet their specific needs.

• 90% would be willing to take a small pay cut – about 3.8 percent on average – in order to have a better choice of benefits through their employers.
• 55% would be willing to bear more of the costs of benefits to have choices that meet their needs.
• 60% are interested in having a wider array of benefits available that they can purchase on their own.

With low unemployment and heightened competition for top talent, benefits can play an important role in helping employees – and the companies they work for – thrive.

Visit MetLife.com/EBTS2019 to explore these and other insights to help your clients offer relevant benefit solutions that attract and retain employees.

 

Health Savings Accounts (HSAs) have seen tremendous growth in the past decade and are quickly becoming one of the most popular employee benefits. These accounts allow individuals who are enrolled in a Qualified High Deductible Health Plan to use tax-free dollars to pay for out-of-pocket
healthcare expenses for themselves and their families.

A new study from Devenir highlights HSA growth in 2018 and predicts continued growth this year. The 2018 Year-End HSA Research Report was based on a survey of top 100 HSA providers and included data for the
period ending December 31^st, 2018. Here are some of the key
findings:

HSA accounts exceed 25 million.

According to the study, the number of HSA accounts has surpassed 25 million,
holding $53.8 billion in assets. This represents a year-over-year increase of 13% for accounts and 19% for HSA assets.

HSA investment assets surpass the $10 billion mark.

Devenir estimates that HSA investment assets reached $10.2 billion at the end of December, up 23% year-over-year. The average total balance, including both the deposit and investment accounts, was $14,617.  19% of all HSA assets are in investments.

Fewer unfunded accounts.

The study found that 16% of HSAs were unfunded at the end of 2018, compared to 20% at the same time in 2017.

HSA contribution jump.

According to Devenir, HSA account holders contributed almost $33.7 billion to their accounts is 2018, up 22% from the year before. Of these contributions, 26% were from employers. The average employer contribution was $839, which is up for $604 in 2017. 57% of all HSA dollars contributed to an
account came from the employee with an average contribution of $1,872. A further 13% of contributions came from an individual account not associated with an employer, with an average of $1,723.

The future is bright.

Devenir currently projects that the HSA market will approach $75 billion in HSA assets by the end of 2020, held among roughly 30 million accounts.

Why are HSAs so popular?

Initially created in 2004, HSAs were slow to take off, but their popularity has
skyrocketed in recent years. One key factor that makes HSAs so attractive is the triple tax advantage. Contributions go into the account tax-free, any interest and investment income earned on the account is tax-free, and withdrawals made from the account for eligible medical expenses are tax-free as well. HSA funds can be used to cover a wide range of eligible expenses, not just those associated with the health plan.

HSAs have many other benefits that make them so popular, including the fact that the account is individually owned. There is no forfeiture of funds at the end of the plan year, or if the account holder retires or leaves the
company. Additionally, after age 65, HSA funds can be used for any expense without penalty, though withdrawals are taxed if not used for healthcare expense. Because of this, HSAs are also gaining popularity as a vehicle to pay for healthcare expenses in retirement.

In the continued war for talent, employers increasingly rely on benefits to help differentiate their organization and attract and retain better employees. Brokers have long played a critical role in this battle, helping employers build a better benefits package. But in today’s fast-changing workplace, a broker’s expertise on the multiple challenges their clients face is just as important as knowledge of the complicated benefits market.

MetLife’s 2018 Broker Study illuminates the evolution of the broker to trusted advisor and expert on the modern workplace and workforce trends including key components in driving growth:

• Broker’s expertise: Employers are working hard to keep pace with workplace trends, and they’re increasingly looking to their brokers to help navigate the new world of work. Employers report that they’d turn to their broker for expertise regarding cost savings (64%), innovative benefits solutions (60%) and benefits administration solutions (58%). 
   
• Work-life balance: 76% of brokers say that their clients need to focus additional attention on supporting work-life balance. Broker activity reflects this sentiment, with broker recommendations for non-traditional benefits related to work-life enrichment significantly increased from last year.

Three key takeaways from the MetLife Broker Study can help you elevate your role and add value to your client relationships:

 

1. Stay updated – and update your clients.

Dedicate time to studying workplace trends, the role of benefits in meeting employee needs and the proven results for employers that do. Educate your clients on these issues year-round, and not just when evaluating plans and enrolling employees.

2. Encourage your firm to lead by example.

It’s time for more brokerage firms to embrace their own advice and reap the rewards of offering a wider array of medical and non-medical benefits.

3. Dive deeper into non-medical benefits.

Understand the variety of offerings available to your clients, especially those that promote work-life enrichment, how these benefits fit in with current offerings and why they’re an increasingly important part of any benefits package.

Explore additional insights from this year’s study for your next client consultation.