NEWARK, N.J. (Business Wire) -- Global economic and financial conditions have turned controlling benefits-related costs into a high priority at most companies, according to a recent report released by Prudential Financial, Inc. (NYSE:PRU).
The report, Expertise is Essential, also shows most plan sponsors rely on the services of a benefits broker/consultant for help with their employee benefits programs, and the majority is satisfied with the support they are receiving.
“Implementing effective cost-containment strategies will be critical over the next five years,” said Lori High, president of Prudential's Group Insurance business. “Benefits brokers and consultants will play a critical role in helping plan sponsors maintain a competitive benefits program while identifying opportunities for greater efficiency and cost savings.”
Expertise is Essential provides insight from benefits plan participants, benefits plan sponsors, and benefits brokers and consultants. High said the findings can be used to help employees prepare for annual enrollment and to support employers' business planning and strategy development.
“The importance of a sound employee benefits strategy that aligns with a company's broader business strategy and financial goals has been underscored by recent market developments,” High said. “Plan sponsors' need for expert advice and guidance from a broker has never been greater.”
Additional trends concerning the broker's role in the employee benefits landscape include:
- Plan sponsors who used benefits strategically to support their companies' business and financial objectives are more likely to be working with a benefits broker/consultant and to place greater value on advice and support they are receiving.
- Looking ahead, both brokers/consultants and plan sponsors agree plan design changes and cost sharing will continue to be among the most common approaches for controlling benefits costs.
- Brokers/consultants are more likely than plan sponsors to emphasize cost containment strategies including cost-sharing, benefits technology, consumer-directed plans, improving workplace health and targeted employee communications.
“Maintaining a close working relationship enables a broker to be in synch with the plan sponsor's priorities and help design a benefits program that address the needs of an increasingly diverse workforce,” High said. “The use of brokers and consultants will likely increase over the next five years as plan sponsors seek help managing costs and maintain the competitiveness of their benefits package.”
High said employees and group plan administrators are finding it difficult to navigate the myriad of benefit options and administrative details involved in selecting a group insurance plan. Prudential is addressing the needs of a changing and demanding workforce by providing brokers with employee communications tailored for an employee's own age and stage of life, and a suite of voluntary benefits that promote employee choice and help employers contain costs.
To support benefits administrators faced with reduced staffing, Prudential provides administration programs including absence management, return to work strategies and the support with issues relating to the Family and Medical Leave Act.
Prudential's Expertise is Essential, the fourth in a series of five, stems from the company's broad Study of Employee Benefits: 2009 and Beyond report which was fielded via the Internet during April and May of 2009 and consists of three distinct surveys: one among benefits plan sponsors, one among benefits plan participants, and one among employee benefits brokers and consultants. The surveys were conducted for Prudential by the Center for Strategy Research, Inc., a Boston-based, independent, market research firm. Click here for a copy of Expertise is Essential.
Prudential Financial, Inc. (NYSE: PRU), a financial services leader with approximately $580 billion of assets under management as of June 30, 2009, has operations in the United States, Asia, Europe, and Latin America. Leveraging its heritage of life insurance and asset management expertise, Prudential is focused on helping approximately 50 million individual and institutional customers grow and protect their wealth. The company's well-known Rock symbol is an icon of strength, stability, expertise and innovation that has stood the test of time. Prudential's businesses offer a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds, investment management, and real estate services. For more information, please visit http://www.news.prudential.com/.
Group Insurance benefits are issued by The Prudential Insurance Company of America, Newark, NJ. Prudential and The Rock logo are registered service marks of The Prudential Insurance Company of America.
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