Benefits November 10, 2011

Employee Satisfaction Continues to Lag Globally in 2011

November 10, 2011 (PLANSPONSOR.com) – According to an analysis by Aon Hewitt, employee satisfaction and engagement continue to be sluggish and remain at their lowest levels since 2008.
Reported by

Aon Hewitt’s third quarter analysis found an engagement level of 56% thus far in 2011, which is the same as 2010, but lower than 2009 (60%) and 2008 (57%). According to Aon Hewitt, traditionally, engagement levels between 65% and 100% represent a high-performing culture; 45% to 65% indicate the workforce is indifferent to organizational success or failure; and anything lower than 45% represents a serious or destructive range.

The analysis found the largest drop in engagement this year is employees’ perception of how companies manage performance. Workers worldwide believe their employers have not provided the appropriate focus or level of management that would lead to increased productivity, nor have they connected individual performance to organizational goals.

Get more!  Sign up for PLANSPONSOR newsletters.

“A significant number of employees are not motivated enough to provide extra effort beyond the job requirements and many anticipate leaving their employers in the near future,” said Pete Sanborn, Talent and Organization Consulting global practice leader for Aon Hewitt, in a press release. “This is critical, as our research continues to show a strong correlation between employee engagement and financial performance, even in turbulent financial times. For example, in 2010, organizations with engagement levels of 65% or greater outperformed the total stock market index and posted total shareholder returns 22% higher than average. On the other hand, companies with engagement of 45% or less had a total shareholder return that was 28% lower than the average return in 2010.” 

Aon Hewitt further analyzed this 2011 data and measured satisfaction scores for key drives of engagement, with its benchmark database. This revealed that Managing Performance (the way we manage performance here keeps me focused on achieving this organization's goals) dropped nearly eight percentage points globally thus far in 2011, with a global satisfaction score of 44%. Regionally, Managing Performance in Latin America is at 55%, followed by the U.S. (50%), Canada (49%), Asia Pacific (49%),and Europe (36%). 

Engagement scores connected to Managing Performance also are low. For example, Career Opportunities (my career opportunities here look good) has a 42% global satisfaction level, Recognition (appropriate recognition beyond pay and benefits for an employee's contribution) is at 40% globally, Tools & Resources (contribution of tools and resources toward employee productivity) is at 51% worldwide, while Senior Leadership (evidence of effective leadership from senior leaders) has a score of 48% globally.

“Our analysis suggests that even at the height of the recession, employees felt a greater connection to their work and role in achieving organizational success than they do now,” said Sanborn. “This is a harsh reality, but also an opportunity for those employers willing to invest in specific areas that will have the largest impact on employee engagement. While there is an expense in doing so, the return on investment can be well worth the effort.” 

Benefits November 10, 2011

Employers Tout Cost Savings from HSAs

November 10, 2011 (PLANSPONSOR.com) - The “2011 Employer and Account Holder Surveys,” commissioned by ACS, a Xerox Company, and conducted by Buck Consultants, show a majority of small employers (77%) believe that High Deductible Health Plans (HDHP) with a Health Savings Account (HSA) are key in controlling health care costs.
Reported by

HDHPs are less costly to employers for both individual and family coverage. Employers report the cost of providing HSA-qualified plans is less than the cost of providing a standard Preferred Provider Organization (PPO). The average direct cost to provide an HDHP/HSA is $5,469 for individual coverage and $9,909 for family coverage. In comparison, the average PPO cost is $7,158 for individuals and $10,691 for family.  

According to a press release, surveyed employers are extremely committed to offering employer-sponsored health insurance for the foreseeable future, and are equally committed to retain their HSA-qualified plans. Only 6% stated that they are at least very likely to discontinue offering the HSA-qualified plan in the future. And, only 7% of employers stated that they would be at least very likely to move employees to future health care exchanges.  

Never miss a story — sign up for PLANSPONSOR newsletters to keep up on the latest retirement plan benefits news.

Other findings of the Employer Survey include: 

  • The average employer that implemented an HDHP and HSA program has 49% of eligible employees enrolled in the HDHP; 
  • Sixty-nine percent of employer respondents contributed to their employees’ HSA accounts; and 
  • Employers’ contributions to HSAs average $1,000 for individual coverage and $1,500 for family coverage. 

Employees Cite HSA Benefits Too  

The “2011 Employer and Account Holder Surveys,” commissioned by ACS, a Xerox Company, and conducted by Buck Consultants, show more than half (56%) of Health Savings Account (HSA) account holders have found that their HSA-qualified plan provides an affordable health care option.  

HSAs put consumers in the driver’s seat when it comes to managing their health services and care. Three-quarters of respondents say the ability personally to control their own health costs is an “extremely” or “very” important benefit of HSAs. Not only are account holders setting aside more money than before they had an HSA to cover potential medical costs (54%), but they are also engaging in healthier lifestyle choices (18%), researching preventive care programs (18%), shopping for lower priced prescription drugs (28%), and planning health care better throughout the year (31%). Individuals perceive that they consume medical services at approximately the same rate but are shopping for care more than before.  

Other findings of the Account Holder Survey include: 

  • Seventy-two percent of account holders indicated that they actively chose the HSA-qualified plan although other plan options exist for them; 
  • Eighty-two percent of account holders surveyed reported that the ability to save tax-free money was “extremely” or “very” important in selecting an HSA-qualified plan; 
  • Seventy-nine percent of respondents state that having an HSA is valuable to them; and  
  • Sixty-four percent of respondents state that their HDHP/HSA combination meets their family’s needs. 

The surveys, commissioned in the fall of this year by ACS and conducted by Buck Consultants, both of which are Xerox companies, generated more than 14,000 existing account holder and 300 employer responses.

«