Workers are feeling less positive about their workplace and thevalue of their benefits, according to a new study from PrudentialFinancial.

Many plan sponsors during the past year were "likely to berestructuring, downsizing, or merging, which all contributed toincreased financial belt-tightening and, consequently, flat or evenreduced benefits," according to Prudential's study, Show Them the Value. As more workers believetheir employers are cutting back on benefits, confidence continuesto slide.

However, the study found a linkage exists between theeffectiveness of employee communications and the perceived value ofbenefits. The perceived value of benefits directly influences theirimportance to workers when selecting a job or deciding to stay withtheir current employer.

Plan participants who rate their benefits communications as"highly effective" see greater value: 85 percent say their benefitsare of great value, compared with 49 percent of those who believetheir employers' communications are moderately effective and just19 percent of those who rate the communications as ineffective.

"Employees must first be aware of the benefits, and reallyunderstand them to appreciate the value of those benefits," saidLori High, president of Prudential's Group Insurance business in astatement. "And, for benefits to have a positive effect on anemployer's recruiting and retention results, they must bethoroughly explained and promoted throughout the organization."

Additionally, those who give high marks to their benefitscommunications are also more favorable toward voluntary benefits.Forty-nine percent say that offering voluntary benefits increasesthe overall value of their benefits package, compared with 33percent who rate communications as somewhat effective and just 20percent of those rating it less than effective.

Over the past two years, most plan participants and employershave not expressed total satisfaction with their benefitscommunication. In fact, only 27 percent of employers rate theircompany's benefits communications as "highly effective," upslightly from 21 percent in 2007. Thirty-eight percent of planparticipants rate their company's benefits communications as"highly effective," a modest increase from 35 percent in 2007.

"Benefits budgets are under pressure so it's important tounderstand the value of the total benefits package and thefinancial investment made by the company," High said. "Brokers canplay an important supporting role in improving the effectiveness ofbenefits communications and education."

Plan participants most prefer group meetings/seminars heldduring the work day (52 percent), followed by e-mail received atthe workplace (45 percent), mail received at home (43 percent), andone-on-one meetings held during the work day (33 percent).

Least preferred are individual or group meetings/seminars heldduring non-work hours (7 percent and 5 percent, respectively).