Small Employers With Poor Benefits Risk Losing Employees
Employees of small companies are far more likely to express dissatisfaction with their employer-provided benefits than workers at larger companies, which could make it difficult for small businesses to retain valued employees, according to MetLife’s annual Employee Benefits Benchmarking Report.
Surveys of 1,213 full-time employees and 1,514 employers showed that 57% of small companies (with under 50 employees) cite "retaining employees" as their most important employee benefits objective. However, of the small company employees surveyed, just 29% indicated they are satisfied with their employer-provided benefits, and only 16% said their employer is effective in educating them about benefits. In contrast, 48% of surveyed employees at the largest companies (with more than 25,000 employees) reported feeling satisfied with their benefit packages, and 39% said they consider their company’s benefits communications to be effective.
"To some extent, employers need to shoulder responsibility for this disconnect in employees’ appreciation of benefits programs, since less than one-third of employees believe their benefits communications effectively educate their work-force," said Randy Stram, vice president, institutional business, MetLife. "Many companies are falling short in their benefits program goals to increase participation and satisfaction. All too often, benefits communication is pushed to the back burner, yet it is often the backbone of a successful program."
Results also showed that big employers are more likely to offer a greater variety of work/life benefits than small companies. While 54% of the largest companies surveyed said they encourage telecommuting and other flexible working practices, just 35% of the smallest companies reported offering similar benefits.
"The competition for talent is expected to intensify, and with benefits high on employees’ priority lists, employers should re-examine areas for improvement and consider using new strategies such as targeting benefits information to employees at different life stages," Stram said. "Helping employees understand the value and cost of their benefits will go a long way in meeting cost and retention objectives."
