MetLife Employee Benefit Trends
While motivating workers and driving productivity continue to be key priorities for employers, the 2018 Employee Benefit Trends Study (EBTS) also shows that there is a real appetite among employers in Chile to build better workplaces — ones that cater to their employees' diverse needs through an optimized benefits strategy.
But this might be challenging. Our research shows that employees are less satisfied with their workplace — and their benefits — than many employers would like to think. In fact, the number of employees telling us they are satisfied with their job and benefits has fallen since we last conducted the study in 2013.
Businesses tend to overestimate the loyalty of their staff. While 68% of employees in 2013 told us they place a high value on benefits for their financial security, retirement or healthcare needs, that number has now fallen to just 27%. Employers are increasingly aware of this trend and have shown more drive than previous years to improve the workplace.
Global Employee Benefit Trends Study 2018
Healthy choices, wellbeing and productivity
Financial wellbeing: the new frontier
Balanced living: the holistic employee
Moreover, employees who use wellness programs report high loyalty, job satisfaction and ability to work. Nearly 89% of employees surveyed said that company wellness programs have had a positive health impact. There’s an opportunity for employers in Chile to implement high-impact wellness programs to target employees' health conditions and have a positive impact.
Percentage of employees surveyed who said they were satisfied with their job and participated in employee wellness programs
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Percentage of employees surveyed who said they were satisfied with their job and did not participate in employee wellness programs
Workplaces should target programs for physical and mental health. The ideal approach to wellness could be a comprehensive program that helps employees all along the health spectrum.
Our study found that employers in Chile tend to be more concerned about emotional health. They cite sedentary lifestyles, work-life balance and stress among their most concerning health issues. Employees, under 30s and the 31-50 age group, are also concerned about emotional health issues. This suggests a shift in focus to encompass more mental and preventive types of programs.
Programs should also target the needs of the employees. Employees are not a homogenous group. While some wellness benefits cross generational boundaries — others suit different age groups.
Utilize data to ensure you are targeting the right programs. Two important issues reported by employers are (1) controlling escalating healthcare costs (two-thirds of employers are challenged by increasing costs at their companies) and (2) building a healthy and productive workforce. Both of which can be reduced if employers are extracting the right information.
Nearly 53% of companies cite illness as a key reason for absenteeism. To tackle these issues effectively, employers in Chile would need to place high importance on medical data and analytics when it comes to designing a wellness strategy and prioritizing wellness programs.
Percentage of employers surveyed who said they used data analysis to evaluate employee health and wellness
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Percentage of employers surveyed who said they used overall market awareness to evaluate employee health and wellness
Benefits providers should be able to tailor data around claims with analytics that can help employers target their wellness activities instead of relying solely on general market data.
All these factors create a real opportunity for employers to build an employee’s sense of security beyond the paycheck. Positioning existing benefits as a means of offsetting employees’ financial worries around healthcare and retirement could have the added result of productivity gains for employers.
There has been a significant dip in employee’s confidence levels over the past five years.
Financial security can be achieved through employee benefits. Employers have an opportunity to try new approaches to financial wellness. These include basic tools for budgeting and financial planning, online tools for managing savings and learning about their options, employee assistance plans, and more sophisticated savings benefits, including those for retirement.
The full range of financial wellness benefits will differ hugely between young parents, for example, and those nearing retirement. Communicating and explaining existing benefits, particularly enhancements to medical and life coverage, as a means of addressing financial worry around healthcare and retirement can also promote a sense of greater financial security and attract talent to your company.
“Many employees, even across generational boundaries, see financial planning programs as an important consideration for a new job”
Helping employees save for retirement is one of the ways to help reduce financial insecurity within the workplace. Employers in Chile understand that retirement provision is an important part of their benefits strategy: 88% told us they feel a responsibility to help employees have enough money in retirement.
Employers are still mindful of the costs and resources required to offer a pension plan — 49% of those without a company scheme cite this as a reason for not having one. But more employers now understand that the value of employee engagement today offsets the cost of helping them plan for retirement.
In every market we’ve surveyed, we find satisfaction with benefits rises considerably when a scheme is well communicated. But here we find another perception gap in Chile: while 92% of employers surveyed rated their benefits communication effective at educating employees about their benefits, only 60% of employees agreed.
Evidence from our study offers an example of why that’s so damaging: 64% of employers claim they offer some kind of retirement or saving plan, but only 20% of employees actually believe that their employer offers a pension and 22% a saving scheme.
The good news is that many companies in Chile have embraced the need to address employee work/life balance. A large majority of employers say they offer flexible working hours and three-quarters have wellness initiatives.
Flexibility is key to having work-life balance. 84% of employers in Chile allow employees to choose their hours and days to suit personal commitments. Even though the number of companies providing flexible working arrangements and work from home options has increased since 2013, we found a significant drop in employee satisfaction levels when it came to employers making it possible for their employees to balance their work and personal life over a period of 5 years.
Not everyone wants or needs flexible working, so it’s also important for employers in Chile to make work/life balance policies part of a flexible benefits package. Employees are not a homogenous group. While some wellness benefits cross generational boundaries — on-site clinics, for example — others suit different age groups.
“Many employers, from small to large companies, now offer some form of flexible work benefits, such as flexible work hours, wellness initiatives, and working remotely.”
Customization maximizes the value of employee benefits. When employee benefits are tailored to life needs, not only do employees show greater appreciation for their employer, but they also appreciate the value of their benefits more, feeling more financially secure.
Both employers and employees in Chile are very open to the idea of voluntary benefits — where employees choose additional benefits, often subsidized by an employer — customized to meet the needs of their diverse workforce. We found 83% of employers in Chile see a wider array of voluntary benefits as an important benefit strategy, compared to 61% in 2013.
Employers in Chile have already shown openness to flexibility in employment practices. The EBTS clearly shows that this is not only welcome but is seen as an evolving approach that can deliver great results for companies.