FOR SMALL COMPANIES with between two and 49 employees, retaining employees is the No. 1 employee benefits objective.
Yet retention rates are at risk: only 29 percent of employees who work for a small company are satisfied with the benefits offered by their employer -- despite the fact that MetLife research indicates a correlation between job satisfaction, employee loyalty and benefits satisfaction.
Additionally, only 16 percent say their company's benefits communication effectively educates them about their benefits. Their peers at the largest companies, with more than 25,000 employees, however, are much more satisfied with their benefits (48 percent) and 39 percent believe their company's benefits communication is effective.
These are among the core findings from MetLife's annual Employee Benefits Benchmarking Report and companion Web-based Benefits Benchmarking Tool, which provide benefits professionals, brokers and consultants with a way to compare the features of one company's benefits program against those of its peers.
"Benchmarking information can help employers identify the right communication channels and the best strategies for improving benefits satisfaction and the perceived value of their benefit offerings," says Randy Stram, vice president of International Business for MetLife. "The competition for talent is expected to intensify and, with
benefits high on employees' priority lists, employers should re-examine areas for improvement and consider using new strategies such as targeting benefits information to employees at different life stages. Helping employees understand the value and cost of their benefits will go a long way in meeting cost and retention objectives."
The MetLife Employee Benefits Trends Study showed benefits Web sites help employees better understand their benefits, leading to an increased level of satisfaction.
