Senior Management, Boards, Finance More Involved in Benefits Decisions

Published on Wednesday, 01 February 2012 09:08 Written by TradersHuddle Staff

NEWARK, N.J.-( Business Wire )-

As the benefits decision-making process continues to gain importance in corporate America, there is growing trend of senior management, boards of directors and finance/treasury, as well as human resources increasingly becoming involved in, or making these decisions. A Changing Benefits Landscape, the third in a series of research briefs stemming from Prudential’s Sixth Annual Study of Employee Benefits: Today & Beyond, found that 40% of plan sponsors say the employee benefits decision-making process in their company has changed to some extent over the past five years, demonstrating increased attention to the bottom line impact of benefits.

The influence of senior management has increased the most, with 45% of respondents saying they are more involved in these decisions. More than 20% of plan sponsors indicated that the boards of directors, finance/treasury and employees themselves are all playing a more important role in the benefits decision-making process. The survey also found:

• 39% of plan sponsors said human resources had an increasing influence over these decisions over the last five years, and
• 20% of plan sponsors noted employee benefits had an increased influence over this same period.

Brokers’ perception of changes to the decision-making process is even more marked, with more than two-thirds of those surveyed (69%) seeing changes in the areas and seniority of people involved in the decision-making process.

“Our research suggests that greater involvement throughout the employer organization may enhance the decision-making process and lead to more relevant benefit offerings,” said John DeLorenzo, senior vice president of Sales and Account Management for Prudential Group Insurance. “Executives who believe there have been significant changes to the decision-making process are more likely to say their employees are satisfied with their benefits programs. Where there have been significant changes, nearly half of respondents believe employees are very satisfied, compared to only a fifth who see little or no change.”

Greater involvement by senior management and a more inclusive approach correlates with better communications, according to the study. Those reporting greater change rate the effectiveness of their benefits communications significantly higher – 48% highly effective – than those who see little or no change in the process, who scored 25% and 18%, respectively.

“Companies that are more focused on benefits tend to pay more attention to communications, which in turn leads to higher levels of employee satisfaction,” noted DeLorenzo. “Workers want to understand their options fully before deciding how to allocate their hard-earned benefit dollars. Better communications can lead to greater understanding, better choices and ultimately increased satisfaction with the plan.”

A Changing Benefit Landscape is the third in a series of five research briefs that highlight the major findings from Prudential’s Sixth Annual Study of Employee Benefits: Today & Beyond. The research was conducted via the Internet during April and May of 2011, and consisted of three distinct surveys of plan sponsors, plan participants, and broker/consultant audiences.

Prudential Group Insurance manufactures and distributes a full range of group life, long-term and short-term disability, long-term care, dental, and corporate and trust-owned life insurance in the U.S. to institutional clients primarily for use in connection with employee and membership benefits plans. The business also sells individual long-term care insurance, and accidental death and dismemberment, and other ancillary coverages and provides plan administrative services in connection with its insurance coverages.

Prudential Financial, Inc. (NYSE: PRU), a financial services leader, has operations in the United States, Asia, Europe, and Latin America. Prudential’s diverse and talented employees are committed to helping individual and institutional customers grow and protect their wealth through a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds, investment management, and real estate services. In the U.S., Prudential’s iconic Rock symbol has stood for strength, stability, expertise and innovation for more than a century. For more information, please visit http://www.news.prudential.com/

Prudential, the Prudential logo and the Rock symbol are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.

Group coverages issued by The Prudential Insurance Company of America, 751 Broad Street, Newark, NJ.

0216635-00001-00

Prudential Financial, Inc.Sheila Bridgeforth, This e-mail address is being protected from spambots. You need JavaScript enabled to view it.