New Research from Unum Points to Gaps in Benefits Education

June 10, 2010

As Benefits Change, the Need for Effective Education Grows

CHATTANOOGA, Tenn.--(BUSINESS WIRE)-- During a year when nearly half (45%) of employees experienced a change in their workplace benefits, education about those benefits dropped off just when it was most needed, according to a study by Harris Interactive on behalf of Unum (NYSE: UNM).

“The past year brought a lot of upheaval for businesses, and efforts to help employees understand their benefits apparently suffered as companies worked day-to-day to navigate unpredictable economic conditions,” said Bill Dalicandro, vice president for enrollment with Unum. “But as the benefits landscape is shifting, it is more important than ever to give employees the right tools to understand their benefits choices and to communicate what’s available to them.”

The online survey of 1,106 working adults shows that, across every age group, fewer employees said they had received effective education about their benefits compared to 2008. In 2008, 39 percent of workers gave their benefits education positive ratings. In 2009, that number dropped to 29 percent.

And as the perception of the quality of their benefits education declined, employees also reported lower ratings of their employers as a place to work, and lower opinions of their employee benefits packages.

Even if employees don’t have a particularly good benefits package, effective benefits education makes them dramatically more likely to consider their employer a very good place to work, the research shows.

“Our research reveals a strong connection between the quality of benefits education and employees’ perception of their workplace,” Dalicandro said. “Quality benefits education can be a low-cost, high-impact way to affect worker satisfaction.”

  • Among full or part time employees who say they receive effective benefits education, 90 percent say their employer values their work.
  • 88 percent of employees also say they are satisfied with their current job.
  • 88 percent of employees also say they would recommend their employer as a good place to work.

According to the survey results, 45 percent of employees reported they had seen changes in their benefits packages in 2009, including 31 percent who said they are paying more for benefits, and 9 percent who reported at least one benefit was discontinued.

About Unum

Unum (www.unum.com) is one of the leading providers of employee benefits products and services in the United States and the United Kingdom. Through its subsidiaries, Unum provided $6 billion in total benefits to customers in 2009.

Harris Interactive Survey Methodology

This survey was conducted online within the United States by Harris Interactive on behalf of Unum from Dec. 9 – Dec. 11, 2009, among 2,029 adults ages 18 and older of whom 1,106 adults were employed (and not self-employed). This online survey is not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated.

In December 2008, Harris Interactive conducted similar research for Unum using many of the same questions among 2,137 adults of whom 1,122 were employed.

About Harris Interactive

Harris Interactive is one of the world’s leading custom market research firms, leveraging research, technology, and business acumen to transform relevant insight into actionable foresight. Serving clients in over 215 countries and territories through our North American, European, and Asian offices and a network of independent market research firms, Harris specializes in delivering research solutions that help us – and our clients – stay ahead of what’s next. For more information, please visit www.harrisinteractive.com.

 

 

Source: Unum

Contact:

Unum

MC Guenther, 423-294-6108 or 866-750-8686