By: Dr. Ronald Leopold, vice president, U.S. Business,MetLife

Over the last few years, employers have focused their attentionon keeping operations running in the face of recessionary pressuresto control costs. And during the downturn, there was a feeling thatemployees and employers alike were “all in it together” – but asthe economy improves, employees are showing signs of feelingoverworked and undervalued. Today, according to MetLife’s 9thAnnual Study of Employee Benefits Trends, more than one-third (36%)of employees hope to work for a different employer in the next 12months. Brokers have an opportunity to help clients see thebig picture, and help employers avoid an exodus of talented (andalready trained) employees.

Employee Loyalty Waning

According to MetLife’s 9th Annual Study of Employee BenefitsTrends, just 47% of employees report feeling very strong loyalty totheir employer, a significant drop from 59% just three years ago.But many employers seem to be oblivious to this change as 51% ofemployers today believe that their employees feel as loyal to themas they did three years ago. Brokers can alert employers tothis potential flight risk and provide counsel on the importantrole that workplace benefits programs play in bolstering employeeloyalty. For example, employees who report that they are verysatisfied with their workplace benefits are about three times aslikely to indicate that they are highly satisfied with theircurrent job and feel more loyal toward their employer compared withthose who are very dissatisfied with the benefits program.Reviewing and modifying employee benefits programs can be atangible way for employers to address the challenges of employeeloyalty.

So what can employers do to create workplace programs thatincrease employee loyalty and retention? Brokers can work throughthe following four simple steps with their clients as a startingpoint:

1) Widencompensation focus beyond wages.

While most employers recognize that salary is the single mostimportant driver of employee loyalty, there is significant lack ofawareness of how other benefits impact retention. Although everyworkforce is unique, MetLife’s research shows that only 38% ofemployers believe retirement benefits are important loyaltydrivers, but, in fact, 64% of surveyed employees say theyare. Similarly, there is a perception gap when it comes tothe importance of non-medical benefits such as dental, disabilityand life insurance. For example, 37% of employers saidnon-medical benefits are important factors in employee loyalty,while 59% of employees said they were.

2) Assess the effectiveness of communications.

Only about one in four employees is satisfied with theirbenefits communications and more than half do not find theirbenefits materials to be clear and comprehensive. But appropriateand effective communications are a key part of a successfulbenefits strategy – for employees to value their programs, theyhave to understand what is offered. Better communications canmake a significant impact on employee retention – among employeeswho said that their employer improved communications over the pastyear, 65% felt their employer was loyal to them, compared to 33% ofemployees overall.

Specifically, brokers can guide their clients to put benefitsinformation on the Internet, tailor information to life events andcommunicate more frequently, all of which are favored changes byemployees.

3) Takea holistic approach to employee health.

The stress of struggling with financial concerns can take aphysical toll on employees, contributing to health-related costsand decreases in employee productivity. For instance, 68% ofemployees who say they are in very good or excellent health saythey are also in control of their finances, compared to just 7% ofemployees in fair or poor health. Therefore, employers that addresstheir employees’ financial health in addition to their physicalhealth will be a step ahead of their competition.

Employees are turning to their employers for help – 52% reportbeing interested in receiving financial advice and guidance throughthe workplace. So, in addition to programs that promote physicalwellness, brokers can work with their clients to add financialwellness programs, such as financial guidance and advice seminarsand online resources and calculators.

4) Helpemployees plan for retirement.

Workers are in need of specific guidance when it comes toplanning for the future. Currently, over 60% of baby boomersindicate they are behind in saving for retirement, and over half ofemployees, including those on the cusp of retiring, are notconfident that they know how much annual income their savings willgenerate once they retire and many are not doing the calculationsto find out.

Nearly three-quarters of employees across all generations (73%)are interested in receiving help from their employers in the formof retirement and financial planning advice. Employees also wantaccess to income protection through the workplace – 69% would liketheir employer to offer an annuity option as part of their 401(k)plan, but only 15% of employers said they currently offerannuities. To address these needs, brokers can help guide theirclients to provide both retirement education and targeted productsfor their employees’ retirement planning.

By following these steps with their clients, brokers can help toencourage employers to make long-term benefits program decisionsthat impact their overall employee loyalty and retention goals, andguide them to business success.

For more insights on trends impacting your clients and theirimplications, download a free copy of MetLife’s 9th Annual Study ofEmployee Benefits Trends at metlife.com/broker/trends.