Few employers believe it is their “responsibility” to provide benefits, though company cultures and philosophies differ. However, employers do believe they at least play a role in helping employees and their families achieve financial security.
New research from Guardian shows employers remain committed to offering affordable benefits that meet employees’ needs. More so than last year, employers are demonstrating a renewed focus on improving employee satisfaction and helping employees make the right benefits choices for their financial needs.
“This is not an easy task,” Guardian argues. “Employee populations are diverse and undergoing a generational shift.”
Employers face growing challenges as they try to balance employees’ well-being with containing benefits-related company costs. Most predict substantial increases in health insurance expenses resulting from the Affordable Care Act (ACA), and many companies expect to make plan design changes.
“Compared to last year, though, fewer employers say that asking employees to pay for more benefits is a part of their strategy,” the company reports. “Instead, they are aiming to find increased efficiencies and savings by reducing their benefits administrative burden. Employers predict the ACA’s impact on their business will extend beyond insurance premiums. They believe the expense and time required for compliance and administration will increase. As a result, a large share of employers plan to increase their use of third-party administrators (TPAs), carriers, and brokers. Outside expertise can help employers navigate ACA-related changes and identify strategies to mitigate their concerns, while meeting both company and employee goals.”
It concludes by noting employers are rethinking how benefits are funded, delivered, and communicated, and they are striving to find mutually beneficial solutions. Even within this shifting landscape, or perhaps because of it, employees place a high value on the financial protection and security that their benefits provide.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
