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5500 Preparer's Manual for 2012 Plan Years
The premier resource in the field of Form 5500 preparation, 5500 Preparer's Manual will help you handle the required annual Form 5500 filings for both pension benefits and welfare benefit plans.
from Spencer’s Benefits Reports: The economic crisis has created a significant shift in employers’ benefits objectives. Controlling benefits costs is now the top benefits objective for employers, edging out employee retention for the first time since 2006, according to MetLife’s 8th annual Employee Benefits Trends Study.
While improving employee productivity remains the third most important benefits objective, employers have renewed focus on this area due to the economy—84% of employers now report that this is a very important benefits objective, up from 79% in 2008. At the same time, economic pressures confronting employees may negatively impact productivity.
According to the MetLife survey, 68% of employees said that over the last 12 months they were affected by increased feelings of job insecurity, a decrease in the quality of their work, an increase in their workload, or being distracted at work because of financial worries.
“In a still-fragile economy, organizations are searching for ways to maximize their benefits programs to improve employee productivity as well as control costs. Programs that help improve employee health and financial security can be strategic tools for helping address these objectives. However, these programs, which in many cases have only a nominal cost to implement, are still underutilized by many employers,” said Anthony J. Nugent, executive vice president of U.S. Business for MetLife. “The ‘next benefits frontier’ will focus on providing employees with access to these programs along with the education needed to become a healthier, more financially secure workforce.”
Providing access to health and wellness programs, work/life balance programs, and financial advice and guidance in the workplace may prove to be a “win-win” for employers and employees alike, as approximately eight out of ten employees said that they believe their productivity would be favorably impacted by these programs, as follows:
Thirty-seven percent of employees strongly believe that because of the benefits they receive at work they worry less about unexpected health and financial issues. This percentage increases to two-thirds (66%) for those employees who say they are very satisfied with their employers’ benefits.
Wellness Programs
Wellness programs may influence productivity. The popularity of wellness programs continues to slowly, but steadily, increase among employers. According to this year’s study, 37% of employers now offer a wellness program, up from 33% in 2008 and 27% in 2005. Among larger employers—those with 500 or more employees—61% now offer a wellness program, up from 57% in 2008 and 46% in 2005.
Employee participation in wellness programs also is increasing. More than half (57%) of employees with access to a wellness program now say they participate, compared with 46% in 2008. This increase is likely attributed to the value that employees perceive from wellness programs:
Nearly half (48%) of employers who offer wellness programs say that they are very effective at improving productivity. Yet it is significant to note that 60% of employers who say that cost saving and employee productivity are important benefits objectives do not offer wellness programs.
“More than ever before, employers are recognizing the value of a healthy workforce and are viewing wellness programs as an investment to help address their business objectives,” said Dr. Ronald Leopold, vice president of U.S. Business for MetLife. “However, many appear to be underestimating this tool, especially compared against the perceived value by their employees.”
Employees who participated in wellness programs reported success with the following wellness goals:
Easing financial worries may translate into increased employee productivity. An employee’s health status can impact his or her financial status which, employers state, can impact productivity at work. According to the MetLife study, employees in poor health are more likely to report financial concerns. Nearly two-thirds (65%) of employees who rate their medical health as fair or poor say they live paycheck-to-paycheck, compared to 43% of people in good or better health. More than one-third (34%) of employees who rate their medical health as fair or poor anticipate that their financial situation will deteriorate in the next six months compared to only 12% of people in good or better health.
Many employers are recognizing the impact that these financial woes may have on their company’s bottom line in lost productivity costs. Almost two-thirds (65%) of employers believe that employees are less productive at work when they are worried about personal financial problems, and over half (52%) believe that absenteeism increases when employees are dealing with personal financial issues. It is not surprising that one-quarter of employees admit feeling more distracted at work because of financial worries given that more than half (56%) of working Americans, and 62% of working women, are very concerned about just making ends meet. Only about one-third (37%) of employees surveyed express confidence about their ability to make the right financial decisions.
One of the major lessons that employees learned this past year is the need to focus on their long-term financial health. Over half (54%) of employees report that the economic events of the past 12 months has made them realize that they need to more actively manage saving for retirement. To achieve this, many are seeking advice and guidance in the workplace—42% of employees are interested in their employer providing access to retirement planning seminars, yet only 35% of employers currently offer these. However, 38% of employers believe retirement programs (i.e., offering 401(k), retirement seminars, access to retirement planning professionals, etc.) are very effective in improving employee productivity.
“Employers have an opportunity to slow the ‘snowballing effect’ that the combination of employee health and wealth concerns can have on their bottom line. By promoting programs that can help employees help themselves, employers can remove some of the financial burden from employees’ shoulders,” adds Dr. Leopold. “Employers, in turn, can reap the benefits of a more productive, loyal workforce. Of employees highly satisfied with their benefits, 81% also were satisfied with their jobs. Of employees not satisfied with their benefits, only 23% said they were satisfied with their jobs.”
For more information, visit http://www.metlife.com.
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