The MetLife Study of Employee Benefits Trends

The MetLife Study of Employee Benefits Trends Findings from the 2003 National Survey of Employers and Employees November 2003 The MetLife Study of Employee Benefits Trends Executive Summary During the third quarter of 2003, MetLife commissioned a national study of employee benefits trends, surveying both employees and employers. For employees, the study focused on: • Assessing basic financial security and work/life goals for their families and themselves; • Determining areas of financial concern, what benefits they have and how these benefits address their needs; • Identifying their attitudes toward benefits; and, • Identifying the channels that employees use — and prefer — for receiving information about enrolling in, and obtaining service related to, employee benefits. For employers, the study focused on: • Identifying their overall benefits objectives and strategies; • Monitoring financial products and services offered at work; • Assessing attitudes regarding voluntary benefits and job satisfaction issues; and, • Understanding the extent to which the Internet is being used to deliver their benefits programs. The results of this study demonstrate a number of significant trends. Economic times have made it difficult for employees to do financial planning, especially because so many are living paycheck-to-paycheck. Lack of planning, however, does not mean lack of concern. Employees are worried about health insurance, job security and making ends meet. They sense that they don’t have the skills to do their own financial planning, yet they do not seek professional assistance. Work/life worries among employees also center on personal retirement and the welfare of their families, including the desire to protect their families’ needs and spend more time with their families. Employees have not adequately planned for their retirement and fear they will not have enough money on which to live once they stop working. Furthermore, they have not provided for the financial well-being of their families in the event of a disability or premature death. Consequently, they are dependent on their employers to provide key insurance coverage. Although employers still are paying at least some of the costs of traditional employee benefits, they are trying to reduce benefits costs by shifting them to employees and providing employees with financial planning services. They also are promoting the use of voluntary benefits, for which the employee pays some or all of the cost. 1 Methodology The 2003 MetLife Employee Benefits Trends Study was conducted during the third quarter of 2003 and consists of two distinct surveys, one of which polls employees and the other of which polls employers. The surveys were conducted by NFO World Group using a Web-based methodology. Both studies were fielded during September. The employee survey was conducted among 728 full-time employees, ages 21 and older, at companies with at least two employees. In addition to this base sample, the survey was completed by 116 Spanish-speaking employees with Hispanic backgrounds and 113 Chinese-speaking employees with Asian backgrounds. A total of 1,548 HR/Benefits executives from companies with at least two employees participated in the employer survey. Demographic Profile of the Sample The employees and employers polled for the MetLife study represent a broad cross-section of respondents. Employees include an even mix of men and women, ranging from 21–69 years in age and drawn from a diverse pool of ethnic backgrounds. Gender Male Female Marital Status Married Never Married Divorced Separated Domestic Partner Widowed Ethnic Background Caucasian African American Hispanic Asian Other/No Response Household Income Less than $40,000 $40,000 – $74,999 $75,000 or more No Response Family Status Have Children No Children 49% 51% 41% 59% 58% 20% 12% 3% 6% 1% Size of Employer (staff size) 2–49 15% 50–199 16% 200–999 20% 1,000–4,999 13% 5,000 or more 36% Age 21–30 31–40 41–50 51–60 61–69 Geography Northeast Midwest South West 86% 4% 3% 3% 4% 26% 29% 29% 12% 4% 20% 41% 32% 7% 21% 28% 30% 21% 2 The MetLife Study of Employee Benefits Trends Employers span an equally broad range of industries and geographic locations. Nearly two-thirds of the employers were small businesses: Industry Service 53% Other 10% Finance/Insurance 10% Construction 5% Government 5% Retail and Trade 5% Transportation/Warehousing 4% Utilities and Telecom 2% Wholesale Trade 2% Manufacturing 2% Agriculture and Mining 1% Primary Workforce Composition Blue-collar and Service 22% White-collar 78% Geography Northeast Midwest South West 16% 20% 32% 32% Employer Size (# of Employees) Fewer than 10 74% 10 – 999 24% 1,000+ 2% 3 Headlines I. II. III. IV. V. VI. Employees are Living Paycheck-to-Paycheck, yet Few Adequately Protect Their Income Streams . . . . . . . . . . . . . . . . . . . . . . . . . . 5–6 Major Concerns Among Employees are Health Insurance, Job Security and Making Ends Meet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Employees Lack Confidence in Planning, but Few Seek Professional Assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Employees Worry About Outliving Retirement Money, yet Don’t Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Employees Know They Need to Protect Their Families Against Unforeseen Events, but are Underinsured . . . . . . . . . . . . . . . . . . . . . . . . . 10–11 Employees’ Failure to Plan Leaves Them Without Key Coverage Beyond the Basics Provided by Their Employers . . . . . . . . . . . . . . . . . .12 VII. Employers’ Most Important Benefit Objective is Cost Reduction; Top HR Strategies are Work/Life Balance and Shifting Costs to Employees, While Providing Planning Services . . . . . . . . . . . . . . . . . . . . . . . . . 13–14 VIII. Employee Satisfaction with Benefits is Declining . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 IX. While Fewer Employers Pay the Total Cost of Benefits, Most are Still Paying at Least Part of the Cost of Traditional and Non-Traditional Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16 Employees Lack Appreciation for Their Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Voluntary Benefits are on the Rise as Employers and Employees Begin to Accept Them . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 X. XI. XII. Employers and Employees are Embracing the Web for Managing Key Benefits and Most Administrative Tasks . . . . . . . . . . . . . . . . . . 19–20 XIII. Most Employers are Not Offering Executive or Retirement Benefits . . . . . . . . . . . . . . . 21 4 The MetLife Study of Employee Benefits Trends I. Employees are Living Paycheck-to-Paycheck, yet Few Adequately Protect Their Income Streams Overall, more than half of employees (52%) surveyed in the MetLife Employee Benefits Trends Study report that they manage their finances by living paycheck-to-paycheck. That figure increases dramatically for Hispanic workers (78%), while only 4% of Chinese workers live paycheck-to-paycheck. Not surprisingly, more 21–30 year olds (59%) than 41–50 year olds (52%) live paycheck-topaycheck. The lowest percentage of employees who depend on their paycheck to manage their finances are Baby Boomers, ages 51–60 (37%). Among those nearing or at the traditional retirement age, 61–69, more than half (51%) live paycheck-to-paycheck. Slightly more than half (57%) of those with children under 18 also need their paycheck to manage their finances. While nearly all workers (87%) who earn less than $30,000 a year live paycheck-to-paycheck, one-third (34%) of the highest earners ($75,000+) are also just trying to make ends meet. As a result, respondents have little discretionary income for college savings or retirement planning. Overall, only 8% of the employees surveyed invest in a 529 college savings plan. Even among parents with children under 18, the figure climbs to only 17%. More than two-thirds (68%) of these respondents are extremely or very concerned about having enough money for their children’s education. Nearly half (48%) of all respondents are equally concerned about outliving their retirement savings. % of Respondents Saying They Live Paycheck-To-Paycheck by Age 100% 80% 60% 59% 52% 53% 52% 51% 37% 40% 20% 0% Total 21–30 31–40 41–50 51–60 61–69 5 % of Respondents Saying They Live Paycheck-to-Paycheck by HH Income 100% 87% 80% 65% 60% 52% 54% 40% 38% 30% 20% 0% Total < $30,000 $30,000– 49,999 $50,000– 74,999 $75,000– 99,999 $100,000+ Despite their reliance on work-related income, one-third of the employees surveyed (33%) do not have or don’t know if they have disability coverage to protect their salary in the case of illness or injury. Among those who do have coverage, an additional 65% do not know the total amount of their household coverage, and half (50%) have done no planning to determine adequate levels of coverage. 6 The MetLife Study of Employee Benefits Trends II. Major Concerns Among Employees are Health Insurance, Job Security and Making Ends Meet The largest percentage of employees (76%) surveyed are concerned with having appropriate health insurance for themselves and their family, followed by job security (71%) and having enough money to make ends meet (69%). Compared with their peers, Hispanic respondents are less concerned with job security (47%), although they are as worried about health insurance (63%) and making ends meet (62%). Top Ranked Financial Concerns Extremely Concerned (“7” & “6” on 7-Point Scale) Health Insurance for me and my family 76% 63% Having job security 47% 71% Enough money to make ends meet 62% 69% 0% 20% 40% 60% 80% 100% ■ Hispanic ■ Total 7 III. Employees Lack Confidence in Planning, but Few Seek Professional Assistance Across all salary and education levels, fewer than one-third (30%) of employees surveyed are confident in their ability to make the right financial decisions for themselves and their families. Yet nearly two-thirds (62%) cite doing research on their own as their primary method of reaching their financial goals. Only one-quarter (25%) have had formal discussions with a financial planner, and the same percentage (25%) have done no specific financial planning. When deciding on personal financial and insurance matters, nearly half of employees (46%) consult with a friend or relative. Nearly one-third consult with an insurance agent (30%) or with no one (27%). Hispanic workers surveyed are significantly more confident than employees overall in their ability to make the right financial decisions. More than half (56%) of Hispanic respondents characterize themselves as confident, versus 30% of respondents overall. Perhaps because of this, Hispanic workers are less likely than their peers to consult with a friend or relative (28%) when making financial decisions. Fully 38% consult no one. Chinese workers surveyed are significantly more likely to consult with a friend or relative (60%) or an insurance agent (36%), than to consult no one (22%). Where Consumers Get Advice for Financial Decisions 60% 46% 40% 30% 27% 19% 13% 8% 7% 6% 20% 0% or Re lat ive Ag en t an yo ne Fi na nc ial Pl an ne r Ac co un ta nt At to rn ey St oc kb ro ke r In su ra nc e wi th Ot he r Fr ien d co ns ult *Multiple Responses Allowed Id on ’t Ce rti fie d 8 The MetLife Study of Employee Benefits Trends IV. Employees Worry About Outliving Retirement Money, yet Don’t Plan Employees’ greatest concerns about retirement are that they will outlive their retirement savings (48%) and, consequently, will have to continue working either full or part-time (48%). They also worry that even when they themselves are elderly, they will have to provide for the long-term care needs of others, either by paying for in-home care or a nursing home (43%). Despite these fears, more than one-quarter of the employees (26%) surveyed have done no specific retirement planning, although slightly more than half (57%) say they have done some research on their own. Failure to plan has left half of participants either somewhat (30%) or significantly (23%) behind where they hoped to be with their retirement savings. This is especially true among employees in the 41– 60 age group — only 4% have achieved their savings goals. Progress Toward Retirement Saving Goals 60% 40% 31% 30% 23% 20% 9% 9% 2% 0% go als be hin d be hin d Ha ve n’ ts ta rte d go als fo rr ea ch ing Do n’ th av e So m ew ha t Si gn ific an tly ac hie ve d Al re ad y go als Lack of retirement planning also explains why more than one-third (39%) of employees are unable to estimate their annual income needs for retirement and do not know how many years they need to plan for living beyond retirement (44%). Despite this, almost half (49%) expect to retire at what has been the traditional retirement age, between the ages of 61 and 70. Women respondents are less likely than men to be able to estimate their annual income needs for retirement (49%) and to know how many years they need to plan for living beyond retirement (55%). However, women are just as likely to expect to retire between the ages of 61 and 70 (49%). 9 On tra ck V. Employees Know They Need to Protect Their Families Against Unforeseen Events, but are Underinsured Among all employees surveyed, more than half (53%) say they are concerned about financial security for their family in the event that they are no longer able to work due to disability or serious illness, due to their own premature death (49%) or in the event of their spouse’s/ partner’s premature death (48%). Yet nearly the same percentage of employees has done no specific planning for a disability (50%), or for a premature death (45%). Of those who do have disability insurance (67%), two-thirds (65%) do not know the total amount of their household’s coverage. Among those who do know the amount of their coverage, one in six (16%) has disability insurance valued at $60,000 or more and nearly half (49%) admit that they do not think their coverage is adequate. Three-quarters of employees (76%) surveyed have basic term life insurance, and nearly two-thirds (63%) of them say the amount they have is adequate. However, fewer than half (49%) of those who know how much coverage they have own policies worth $60,000 or more. This is particularly disturbing among the prime-needs segment, defined as those with financially dependent spouses and/or children under the age of 18. Nearly three-quarters (72%) of these households have less life insurance than five times their annual household income. Also, half of the prime-needs segment have done no planning to prepare for premature death (47%) or a disability (54%). Among Hispanic employees, a greater percentage are concerned about the impact of a disability (75%), their own premature death (77%) or their spouse’s/partner’s premature death (79%). However, two-thirds have done no planning in case of a disability (68%) or premature death (65%). Of those who have disability insurance (30%), the majority (82%) are unaware of the amount of coverage they have, and most (85%) believe that their coverage is inadequate. 10 The MetLife Study of Employee Benefits Trends Concerns about providing for their own/others’ long-term care also weigh heavily on employees’ minds. Nearly half (43%) of the survey respondents admit that they are extremely or very concerned about long-term care financing, yet most (84%) do not have — or don’t know if they have — long-term care insurance. Hispanic workers (50%) are somewhat more concerned about long-term care financing than employees overall, while Chinese employees (21%) are significantly less concerned. While 95% of surveyed employees overall have no parents who depend on them financially, more than one-third of Hispanic (35%) and Chinese (34%) participants are providing financial support to their parents. Progress Toward Planning for Disability (All Consumers) 60% 50% 40% 35% 20% 18% 16% 15% 15% 0% pl an nin g ow n pl an wo rk sh ee ts /c alc ula to rs /o nli ne w/ fin an cia lp lan ne r di sc us sio n Fo rm al Ot he r on Co m pl et ed sp ec ific re se ar ch a to ol s So m e No 11 Us ed VI. Employees’ Failure to Plan Leaves Them Without Key Coverage Beyond the Basics Provided by Their Employers Most households (71%) do not have or don’t know if they have a financial plan, defined in this survey as “the process that helps you access needs and actions to achieve personal goals.” This lack of financial planning correlates with the high percentage of employees surveyed who do not have or don’t know if they have long-term care (84%), critical illness (81%), optional/supplemental life (72%) or dependent term life (70%) insurance. Most of those covered by these types of insurance products have acquired them through their own or their spouse’s/partner’s workplace, including three-quarters of those who have long-term care insurance (78%) and critical illness insurance (77%), and approximately two-thirds with dependent term life (71%) and optional/supplemental life (64%) insurance. Consumer Product Ownership Products Obtained Either Through or Outside the Workplace 100% 95% 83% 80% 76% 67% 60% 40% 30% 29% 28% 19% 16% 20% 0% M ed ica l De nt al Lif e Di sa bi lity Lif e Op tio na l/S up pl em en ta lL ife Fi na nc ial Pl an Illn es s Te rm De pe nd en tT er m Ba sic Cr itic al Te rm Lo ng Ca re The percentage of Hispanic respondents who lack these same protection products is comparable to the overall employee profile. Hispanic employees are less likely to own or know if they own long-term care insurance (95%), optional/supplemental life insurance (81%), disability insurance (70%) or have a 401(k) plan (67%). Chinese respondents resemble their peers in their ownership profile, with a few notable exceptions. Chinese workers are somewhat more likely to have a financial plan (35%) and own supplemental life insurance (39%), travel accident insurance (36%) and critical illness insurance (28%). They are somewhat less likely to have medical insurance (86%), homeowners or renters insurance (45%), or disability insurance (56%). 12 The MetLife Study of Employee Benefits Trends VII. Employers’ Most Important Benefit Objective is Cost Reduction; Top HR Strategies are Work/Life Balance and Shifting Costs to Employees, While Providing Planning Services Controlling health and welfare benefits costs is ranked as the single most important benefits objective among employers (54%). Employee retention, which in 2002 shared the number one spot with controlling costs, is lower (49%) than controlling costs this year by almost 10%. However, four in five employers with 50–99 employees still attach the same importance to controlling costs and employee retention this year. For employers with 10,000+ employees, employee retention is more important than controlling health and welfare benefit costs. Following controlling health and welfare benefit costs and employee retention, employers cite increasing employee job satisfaction (47%) and increasing employee productivity (46%) as the next most important benefits objectives. Work/life balance is the benefits strategy that employers rate as the single most important (43%) in meeting their benefits objectives. Other key strategies are providing better decisionsupport tools for employee benefits (29%), shifting more of the cost of benefits to employees (26%), providing retirement planning services (25%) and giving a wider array of voluntary (i.e., employee-paid) benefit offerings (22%). 13 Most Important Employee Benefits Objectives Controlling health/welfare benefit costs Retaining employees Increasing employee job satisfaction Increasing employee productivity Attracting employees Reducing HR administrative costs Helping EEs make better benefits decisions Addressing more of EEs’ diverse needs Helping EEs make better financial decisions 17% 21% 17% 15% 13% 9% 12% 19% 11% 11% 54% 43% 49% 43% 47% 35% 46% 36% ■ 2003 ■ 2002 0% 20% 40% 60% Most Important Employee Benefits Strategies Benefits to help work/life balance Employee decision support tools Cost shifting to employees Retirement planning Wider array of voluntary benefits 401(k) investment education Common platform for administration Internet access for all employees General financial planning Employee self service on net Outsourcing benefits administration Build or expand benefits Web site 5% 12% 29% 23% 26% 21% 25% 28% 22% 20% 21% 28% 20% 22% 18% 12% 14% 13% 10% 13% 8% 11% 43% 39% ■ 2003 ■ 2002 0% 20% 40% 60% 14 The MetLife Study of Employee Benefits Trends VIII. Employee Satisfaction with Benefits is Declining Forced to take on more of the burden of managing and funding their benefits, the study suggests that employees are less satisfied with their benefits packages than in years past. This year, only one-third (32%) of the employees surveyed express satisfaction with their workplace benefits, compared with 41% in 2002. Among men, the percentage drops to 29%, versus 41% one year earlier. Job satisfaction has also fallen somewhat, with 44% of the respondents expressing satisfaction in 2003 compared with 48% in 2002. Interestingly, there is a gap of more than ten percentage points between employer and employee views on workplace satisfaction. Whereas more than two in five (41%) employers believe that workers are satisfied with their benefits, fewer than one in three (32%) employees agree. Similarly, 54% of employers believe job satisfaction is high at their company, compared with 44% of employees. Significantly more small employers (i.e., those with fewer than 50 employees) believe job satisfaction to be high (54%) than do mid-size and larger employers (37%). Benefits satisfaction remains relatively consistent across all size segments. Employee Satisfaction with Benefits % Who “Strongly Agree” (“7” & “6” on 7-Point Scale) That They are Satisfied with Their Employee Benefits 100% 80% ■ 2003 ■ 2002 60% 41% 41% 31% 30% 44% 39% 47% 40% 39% 34% 26% 33% 32% 20% 0% Total 50–199 200–999 1,000– 4,999 5,000– 9,999 10,000+ Among employers and employees, about one in four reports that employee benefits are an important reason why workers join the company (27% for employers and 25% for employees). However, a greater percentage of employees (42%) than employers (31%) say that their company’s benefits offering is an important reason for employees to remain with the company. Compared with employees overall, Hispanic workers are less satisfied (25%) with their benefits and just about as satisfied with their job (49%); Chinese workers are equally satisfied as their peers with both their benefits (29%) and job (47%). More than half of employers (55%) believe that their benefits are comparable to their competitors’ offerings. 15 IX. While Fewer Employers Pay the Total Cost of Benefits, Most are Still Paying at Least Part of the Cost of Traditional and Non-Traditional Benefits Fewer employers are paying the full cost of their employees’ insurance. Only one in six (16%) workers who get medical coverage does not have to pay for some or all of it. At least one-third of those who receive coverage through their workplace say that their company pays the entire cost of their disability (33%), basic term life (38%) and accidental death and dismemberment insurance (35%). Three out of four workers who obtain traditional benefits through their employer receive subsidized medical (77%), dental (71%) and vision care (70%) insurance, as well as a 401(k) plan (71%). Among those who obtain other benefits through their own or their spouse’s/partner’s workplace, employers partially pay for disability insurance (49%), an employer-funded pension plan (49%), optional/supplemental term life (48%), accidental death and dismemberment (47%), and basic term life insurance (43%). About half of the employees surveyed who purchase non-traditional benefits through their own company or their spouse’s/partner’s company receive company-paid subsidies for longterm care insurance (54%) and dependent term life (54%). Among those who purchase estate planning and group legal services at work, more than one-third (41% and 37%, respectively) receive an employer contribution. Consumer Product Ownership – by Source of Workplace Funding (Among Those with Products Through Workplace) 100% 80% ■ Employer pays all ■ Employer pays some ■ Employee pays all 60% 40% 20% 0% Ho m e/ De Re nt nt al er In su ra Ba nc sic e Te rm Lif e M Ba ed nk ica ing l Se rv ice s Ca re De M or pe tg nd ag en e tT er m Op Lif Fi tio e na na nc l/S ial up Pl pl an em en ta lL Tr av ife el/ Ac cid en Cr t itic al Illn Lo es ng s Te rm Ca re Gr ou p Le Es ga ta l te Pl an nin g Vi sio n Pe t Co nc ier ge Au to AD &D Di sa bi lity 16 The MetLife Study of Employee Benefits Trends X. Employees Lack Appreciation of Their Benefits For nearly all employees (92%) surveyed, medical insurance is the most important employee benefit. However, they value paid vacation days and holidays ahead of other key coverage, signaling a need for benefits education. Time off is most important to two-thirds of employees (68%), ahead of dental (55%), life (42%) and disability (38%) insurance, and employer-funded pension plans (42%). Furthermore, employees spend little time considering and making benefits decisions during open enrollment. Two-thirds (63%) of employees surveyed spend less than one hour. Overall, the median time spent is just 30 minutes. Two-thirds of Hispanic workers surveyed also say that medical insurance (90%) is most important to them, but life (68%) and disability (65%) insurance are more important than paid vacation and holidays (32%). A higher percentage (45%) spend more than one hour considering benefits options. The median time spent is 37 minutes. Chinese workers also value their medical insurance as most important to them (92%), but a 401(k)/403(b) plan (69%) is next most important, followed by dental (53%) and disability (51%) insurance. Similar to workers overall, Chinese employees (61%) spend less than one hour making benefits decisions during open enrollment. The median time spent is 32 minutes. Average Time Spent Thinking About and Making Benefits Decisions 3+ hours 10% 2–3 hours 8% 0–30 min 37% 1–2 hours 19% Median: 30 Minutes 31–60 min 26% 17 XI. Voluntary Benefits are on the Rise as Employers and Employees Begin to Accept Them Nearly one-third (28%) of employees surveyed say they are interested in having their employer provide a wider array of voluntary benefits that they could choose to purchase and pay for themselves. Among employers, 20% of employers’ most important benefits strategies were to “provide a wider array of voluntary benefits.” While only about one in four (22%) companies view providing a wider array of voluntary (i.e., employee-paid) benefits as a top priority, the employers surveyed see a number of advantages to these offerings. A little over half say that payroll deductions make it more convenient for employees to pay for these benefits (55%) and that offering voluntary benefits is a more convenient way for their employees to buy the products on their own (51%). Slightly fewer than half say they can offer employees better rates (46%), and that payments through payroll deduction help employees be more disciplined about saving (43%). Two out of five employers view voluntary benefits as a cost-effective way both to meet the diverse needs of employees (42%) and to enhance the attractiveness of a company’s overall benefit offerings (40%); however, only about one-third (38%) note that employees receive objective information from their employers about voluntary benefits, or that employers screen providers to find the best products and services for their employees. Nearly one-third of employees (30%) are interested in having their employer provide access to financial planners to help them make decisions about all of their financial needs. Perceived Advantage of Voluntary Benefits Based on Agreeing with Statement (Top 2 of 7) Payroll deduction convenience for payment More covenient than buying retail Better rates/group rates Payroll deduction is disciplined way to save Saves time 46% 51% 55% 43% 42% No medical exams 38% 0% 20% 40% 60% 18 The MetLife Study of Employee Benefits Trends XII. Employers and Employees are Embracing the Web for Managing Key Benefits and Most Administrative Tasks More than one-third of employers (38%) surveyed utilize the Internet or their company intranet to manage employee benefits information and provide benefits services. Among companies with 50–999 and 1000–4999 employees, nearly two-thirds or more are doing so (61% and 71%, respectively). Across all companies, two-thirds (65%) manage medical insurance, more than half (56%) manage a 401(k), and more than two in five manage dental insurance (45%) on the Web. Employers are also increasing the range of benefits activities they manage online. More than two-thirds (69%) use the Internet/intranet for benefits record keeping related to changes in status (name, address, beneficiary, etc.), and half (51%) offer online benefits enrollment. More than two out of five (49%) provide online benefits plan design information, eligibility verification (48%), claims status/explanation of benefits (45%) and benefits billing/remittance (43%). Online Benefits Management Benefits-Related Activities Employers Manage Online 100% 80% 69% 60% 51% 49% 48% 45% 43% 36% 34% 40% 20% 0% ke ep ing en ro llm en t inf or m at io n (e .g .c lai m s/ fin an cia l) ex pl an at io ns bi llin g/ re m itt an ce ve rif ica tio n re co rd su bm iss io n Cl aim s Be ne fit s El ig ib ilit y de sig n st at us /b en ef its Be ne fit s Be ne fit s pl an Be ne fit s 19 Cl aim s Re po rti ng Employees have mixed emotions about this trend, underscoring again the need for education by employers seeking to shift benefits management to the Web. More than one-third of the employees surveyed prefer initial communications regarding their benefits to come via a packet of materials provided at work (44%) or mailed to their home (38%). A similar percentage favor group meetings (41%), while approximately one in five (19%) prefer the Internet or the company intranet. While 46% of employees would prefer to use the Internet or company intranet for benefits enrollment, only one-fifth (20%) of employees currently do so. To obtain service, half (55%) of employees surveyed typically talk to a customer service or human resources professional over the phone, or via a face-to-face meeting with human resources (37%). More than one-third of employees (35%) obtain service online or via email. 20 The MetLife Study of Employee Benefits Trends XIII. Most Employers are Not Offering Executive Benefits or Retirement Benefits Only one-quarter of employers (23%) offer executive benefits to address the special needs of their highly compensated employees. Among companies with 50–999 and 1000–4999 employees, that figure is higher (31% and 44%, respectively). Prevalence of Executive Benefits 60% 47% 44% 43% 41% 40% 31% 23% 24% 20% 20% 0% Total 2 to 9 10 to 45 50–999 1,000– 4,999 5,000– 9,999 10,000– 24,999 25,000+ In terms of benefits provided to retirees, fewer than one in five employers (19%) offers coverage, though the percentage of companies with 50–999 employees and 1000+ who do so is higher (30% and 57%, respectively). 21 About MetLife MetLife, a subsidiary of MetLife, Inc. (NYSE: MET), is a leading provider of insurance and other financial services to individual and institutional customers. The MetLife companies serve approximately 12 million individuals in the U.S. and companies and institutions with 37 million employees and members. MetLife also has international insurance operations in 12 countries. For more information about MetLife, please visit the company’s Web site at www.metlife.com. For additional information about the MetLife Study of Employee Benefits Trends, please contact Gene Lanzoni at (908) 253-1775 or glanzoni@metlife.com L03116DXU(exp1205)MLIC-LD 22