A total of 49% of
employees in the US say current economic conditions mean they are
counting on employers to help them achieve financial security
through a range of employee benefits such as dental, disability and
life insurance, according to a MetLife study.

The 10th Annual MetLife
Study of Employee Benefits Trends, which was conducted in September
and October 2011, said current economic conditions means many
younger employees – who are often employed by small businesses –
are looking more towards employee benefits to achieve financial
security, even at the price of covering the costs
themselves.

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According to the study,
the percentage of companies with 500-plus employees identifying
voluntary benefits as a key element in their benefits strategy
jumped to 57% from 43% a year earlier, while smaller firms saw an
increase to 31% from 26%.

In terms of voluntary
insurance benefits, the latest study said of the 41% of employees
interested in life insurance, only 20% of small business employers
offer it.

Furthermore, of the 38%
of employees interested in critical illness cover, only 10% of
small business employers provide it.

With respect to plans
for specific types of benefits and coverage levels, the study noted
that 81% of employers surveyed stated that over the next 18 months,
they intend to maintain the current coverage levels for medical and
non-medical benefits including life, dental and disability
insurance.

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Employee
loyalty

A key message to emerge
from the study is that employee loyalty is linked to satisfaction
with benefits, and therefore employees who are very satisfied with
their benefits are more likely to feel loyal to their
employer.

For example, the study
found that 61% of employees who were very satisfied with their
benefits felt a very strong sense of loyalty to their
employer.

Anthony J. Nugent,
executive vice president for group, voluntary and worksite sales,
at MetLife, said the study underscores that generational
differences about benefits needs and preferences are not just
reflections of age.

“Younger workers,
particularly those in many smaller organisations that were hit very
hard by the recession, and who are unsure about the future of
social security, have a different benefits perspective than older
generations,” noted Nugent.

He added that there is
no economic need for smaller businesses to leave popular voluntary
benefits to the realm of larger companies, especially given the
interest and willingness by many Generation X and Y employees to
contribute to, or to fully pay for, benefits.