Workers see more value in employee benefits as pandemic-era annual enrollment nears
September 01 2020 - 9:00AM
Business Wire
Nearly three-quarters say programs—such as income protection and
financial wellness tools—are a big reason they would stay at a job,
up dramatically from a year ago.
Amid the COVID-19 pandemic and the resulting economic fallout,
workers report a significant increase in the value they place on
the benefits offered by their employers, including a double-digit
increase in how likely they are to remain at a job based on
non-health benefits such as retirement savings, disability
insurance, life insurance and other tools to help alleviate
financial stress.
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In a survey by Prudential Financial (NYSE: PRU) to understand
employee needs and perspectives ahead of the 2020 annual enrollment
period, employed respondents overwhelmingly said their benefits
programs make up a key part of their compensation (77%, up from 67%
from a year ago) and are a big reason they would stay at a job (73%
vs 59%).
Under normal circumstances, open enrollment season poses unique
opportunities and challenges for employers and brokers. This year,
the impact of COVID-19 will provide the backdrop as they are tasked
with curating, administering and communicating the right mix of
benefits to support the interconnected physical, mental and
financial wellness of their employees.
Workers will similarly face enrollment decisions in the current
environment—and those choices matter, in unexpected ways. The
research found that people who report that their benefits reduced
stress are more likely to opt for certain lesser-adopted
benefits—particularly those that can alleviate unanticipated
expenses. Examples include participation in a health savings
account, accident insurance and life insurance.
Other findings in the survey, conducted Aug. 3-4, include:
- 75% agreed that, “Due to the pandemic, I feel that access to
benefits through an employer is now more important than ever
before.”
- 75% agreed that, “Given the current environment, it makes me
realize that benefits are a much more important part of a
job.”
- By more than a 2-to-1 margin, respondents said they would “be
willing to take a chance on a new job right now if it offered
better benefits” (52% agree vs. 24% disagree, with 24%
neutral).
“While we’re pleased to see workers increasingly recognize the
value of a comprehensive, cohesive workplace benefits package, we
also cannot ignore that this stems from the financial, physical and
mental stressors of the pandemic,” said Leston Welsh, head of
business segments for Prudential Group Insurance. “Given the
uncertainty of the current environment, it’s more important than
ever for employers to educate and encourage their employees to
choose the solutions that will help safeguard their financial
security—over the near and long term.”
About Prudential Group Insurance
Prudential Group Insurance manufactures and distributes a full
range of group life, long-term and short-term disability and
corporate and trust-owned life insurance in the U.S. to
institutional clients primarily for use within employee and
membership benefit plans. The business also sells voluntary
products, including critical illness, accidental death and
dismemberment and other ancillary coverages. In addition, the
business provides plan administrative services in connection with
its insurance coverages, and administrative services for employee
paid and unpaid leave, including FMLA, ADA, and PFL.
About Prudential Financial
Prudential Financial, Inc. (NYSE: PRU), a financial wellness
leader and premier active global investment manager with more than
$1.5 trillion in assets under management as of June 30, 2020, has
operations in the United States, Asia, Europe and Latin America.
Prudential’s diverse and talented employees help to make lives
better by creating financial opportunity for more people.
Prudential’s iconic Rock symbol has stood for strength, stability,
expertise and innovation for more than a century. For more
information, please visit news.prudential.com.
The Prudential Insurance Company of America 1039749-00001-00
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Anjelica Sena 973-802-6930 anjelica.sena@prudential.com
Twitter: @AnjelicaSena
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