Latest Happenings in Today’s World

Benefits Linked to Loyalty

A 2012 report by Aflac WorkForces shows undeniable evidence linking benefits offerings and employee loyalty. When asked what their current employer could do to keep them in their jobs, 49% answered, “improve my benefits package.” Employees who are extremely or very satisfied with their benefits program are 9 times more likely to stay with their current employer than those who are dissatisfied with their benefits program.

75% of employees are even willing to take a decrease in pay for a better benefits package. Some employees believe that a comprehensive benefits package demonstrates that their employer cares about them. With 10% of U.S. companies still planning to decrease their ancillary benefits options in 2012, this report reinforces that companies may be putting themselves in danger of losing important members of their workforce.

A 2012 Cost Update

According to a recent Milliman study, the average cost of health care for a family of 4 averages $20,728, nearly a 7% increase from last year. Through payroll deductions and cost sharing, employees pay an average of $8,584, or 41%, of this total for medical care and prescriptions and employers pick up the balance. These figures are based on the combined employer and employee costs for a common preferred-provider plan, or PPO.

Growing Concerns Over Behavioral Health

A recent survey found that the direct costs of mental health care represent around 6% of overall health care costs. Behavioral health, including depression and stress, is an area of concern that continues to grow for employers large and small. Nearly 30% of young adults (ages 18 to 25) have had a diagnosable disorder, more than any other age group. Overall, about 5% of the U.S. adult population has a disorder that greatly impairs their ability to function in daily life.

To view other articles from the SIP Summer Newsletter, please click here.

In cooperation with NAEBA

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