A strategy that matches the goal

(Article originally published by WFC Resources, December 2003, as an UpDate Column)

MetLife has just released their 2003 Study of Employee Benefits Trends, and it's pretty interesting. They surveyed 728 employees and 1,548 HR or benefits executives, asking employees about their areas of concern and work-life needs, and executives about their overall goals and objectives. The first 11 pages of the report deal with the employee side, mostly the relationship between the workforce and its money, which is frightening, to say the least. But it's the last half of the study that grabbed our attention.

First, the first half. It makes an unbelievably strong business case for employers to offer financial assistance to their workforce. More than half of employees surveyed say they manage their finances by living paycheck-to-paycheck. Most don't have or don't know if they have a financial plan. Only 30% have any confidence in their ability to make the right financial decisions for themselves or their families. Nearly half are concerned about financial security for their family in the event of their death, or their spouse/partner's death, but only 45% have planned for it.

The second half of the study deals with employers and benefits, their most important benefits objectives and the strategies their using to accomplish them. One might think, or at least hope, that with the workforce in such bad financial shape one of employers' top objectives would be to help employees make better financial decisions. That's at the bottom of the list, unfortunately, of great importance to just 11% of respondents.

The most important benefit objective? It's a negative one. Controlling the cost of health and welfare benefits ranked at the top of the list for 54%, and an additional 17% put reducing HR administrative costs at the top. Last year employee retention shared the number one spot with cost cutting, but this year it was lower by nearly 10%. And for more than a fourth of employers, shifting costs to employees was the most important strategy to accomplish that objective.

The study results aren't all negative. There are more positive goals on the list, goals like retaining employees (second) increasing job satisfaction (third) and raising productivity (fourth). For 17%, attracting employees is their most important benefits objective.
Here's the really interesting part. For 43% of employers surveyed – the largest group – helping employees achieve work-life balance is their most important employee benefits strategy. At first glance, it wouldn't seem that the strategy that's top on the list has any relation to the goal that's on top. But a quick search of our archives found plenty of evidence that offering more work-life benefits will accomplish exactly what's wanted – reducing health care costs. Here's just a sample:

A study of 46,000 employees at six large companies has found stress is the most costly of 11 controllable workplace health risks. The study was conducted by the nonprofit Health Enhancement Research Organization (HERO), a coalition of Fortune 500 companies, and StayWell Health Management. (# 14710, 10-17-00)

A Gallup poll found companies that offer a full range of work-life benefits and actively support their use have workers with the lowest stress levels and the fewest minor health problems. Those who used dependent care offerings, flex options, seminars, long-term care insurance, family leave and employee assistance programs were also “significantly more satisfied” with their jobs, had lower stress levels, were more productive and more able to balance work, family and personal lives. (# 11502, 3-11-98)

A study of 21,300 nurses by Harvard School of Public Health found those in jobs where there was a high level of control and high social support had the best health, while those with the least job control had the worst. (# 14303, 6-7-00)

And our April, 2001 Trend Report was all about the relationship between work-life and the cost of health care.
It doesn't seem like that negative a goal after all, come to think of it, and even though employers may not know it, it's certainly the perfect strategy.