Aflac Survey of Small Business Decision-Makers Reveals What It Takes to Attract and Retain Employees
May 18 2006 - 1:14PM
PR Newswire (US)
COLUMBUS, Ga., May 18 /PRNewswire/ -- Seventy percent of small
business decision-makers indicated they are concerned about their
company's ability to provide affordable health insurance coverage
for employees, according to a recent survey commissioned by Aflac.
Two primary concerns included: - Attracting and retaining
employees, with nearly two-thirds (63 percent) of respondents
reporting that they are concerned about their company's ability to
provide a benefits package that will attract and retain employees;
and - Nearly half (49 percent) agree that they cannot attract and
retain top quality employees without offering competitive health
benefits. The Aflac-commissioned survey of 501 small business
decision-makers indicates that respondents see a direct correlation
between profitability and current health benefit offerings, with
more than a third (36 percent) reporting that their current health
benefit offering has negatively affected business. The top three
effects were cited as: decline in profitability (24 percent),
inability to attract new employees (11 percent), and loss of good
employees (seven percent). "Quality health insurance benefits are
often key to recruiting and retaining good employees," said Paul S.
Amos, II, executive vice president and chief operating officer.
"Because small businesses are more susceptible to premium
increases, it is critical that small business owners and management
are well-informed of the numerous health benefit options
available." Six in ten (58 percent) of survey respondents agree
that "it is important to financially help employees with health
challenges and medical emergencies." Among small businesses that
offer some type of benefits to their employees (58 percent), an
average of 52 percent of the employee base receives health care
coverage, with these employees paying an average of 31 percent of
health insurance premiums. While 21 percent of these employees pay
zero percent of health insurance premiums, 63 percent pay half or
more. "Aflac recognizes and respects the contribution small
businesses make to the growth of our economy. We also understand
that the rising costs of health benefits are having a significant
impact on the bottom lines of small businesses and on their
employees' total compensation. That is why we offer employees
benefits -- it allows businesses of all sizes to make insurance
policies available to their employees with no direct cost to the
business," added Amos. Additional key findings from the survey
include the following: - Nearly half (46 percent) of small business
decision-makers report that increasing health care costs have
negatively impacted their employees' wages. - Approximately four in
ten (38 percent) have taken some action around their benefits last
year and one-third (34 percent) anticipate taking some action in
the coming year. - Four in ten (42 percent) of those surveyed
agreed that annual increases in health benefits have made them
decrease their offerings. - Fewer than one in ten (seven percent)
of small businesses currently offer Health Savings Accounts (HSAs)
to their employees. - Of those small business decision-makers
considering implementing HSAs, 73 percent indicated that giving
their employees more options was the primary reason. For more
information about the survey or Aflac policy offerings for small
businesses, visit aflacsb.com. For more than 50 years, Aflac
products have given policyholders the opportunity to direct cash
where it is needed most when a life-interrupting medical event
causes financial challenges. Aflac is the number one provider of
guaranteed-renewable insurance in the United States and the number
one insurance company in terms of individual insurance policies in
force in Japan. Aflac's insurance products provide protection to
more than 40 million people worldwide. Aflac has been included in
Fortune magazine's listing of America's Most Admired Companies for
six consecutive years and Forbes magazine's Platinum 400 List of
America's Best Big Companies for five consecutive years. In January
2006, Aflac was included in Fortune magazine's list of the 100 Best
Companies to Work For in America for the eighth consecutive year.
Aflac was also included in Fortune magazine's list of the Top 50
Employers for Minorities in August 2005, and in September 2005,
Aflac Japan was named the Life Insurance Company of the Year at the
Asia Insurance Industry Awards, sponsored by the Asia Insurance
Review. Aflac Incorporated is a Fortune 500 company listed on the
New York Stock Exchange under the symbol AFL. To find out more
about Aflac, visit aflac.com. About the Survey On behalf of Aflac,
StrategyOne, an applied research consulting firm, conducted a
national online survey among 501 small business owners/managers to
better understand their perceptions of and experiences with health
benefits. The survey, which has a margin of error of plus or minus
4.4 at the 95 percent confidence level, was conducted using the
field services of Harris Interactive. (Logo:
http://www.newscom.com/cgi-bin/prnh/20041202/CLTH019LOGO) Media
Contacts: Laura Kane Aflac Incorporated 706.596.3493 Mechell Clark
Aflac Incorporated 706.243.8004 Analysts and Investors: Kenneth S.
Janke Aflac Incorporated 1-800-235-2667, option 3
http://www.newscom.com/cgi-bin/prnh/20041202/CLTH019LOGO
http://photoarchive.ap.org/ DATASOURCE: Aflac Incorporated CONTACT:
Media, Laura Kane, +1-706-596-3493, or , or Mechell Clark,
+1-706-243-8004, or , or Analysts and Investors, Kenneth S. Janke,
+1-800-235-2667, option 3, or , both of Aflac Incorporated Web
site: http://www.aflac.com/
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