Study Identifies Factors Influencing Employees When Choosing Benefits

A recent study from the Employee Benefits Group division of Sun Life Financial Inc. identifies the factors that influence employees when choosing voluntary workplace benefits and uncovers potentially false perceptions employees have regarding the likelihood of using benefits and the financial protection they offer.

The annual online study, The Voluntary Benefits: Key Factors Influencing Employee's Choices Study, conducted by Sun Life's Employee Benefits Group, reveals the factors that have the biggest impact on whether an individual selects voluntary benefits through their employers and their preferred methods of learning and enrollment.

In the nationwide study, more than 2,800 employees were asked to distribute 100 points across six options to demonstrate what influenced their decision for choosing a specific benefit. Participants rated the "Likelihood of Using in the Near Future' and "Financial Protection Provided' as the most important factors.

In the "Likelihood of Using in the Near Future' category, employees rated disability and life benefits close to equal, despite the likelihood that suffering a disability at the time of their working years is far higher than death. When asked about the financial impact that would occur if they required a certain benefit, employees rated dental almost as high as disability and life. The study also found that employees value dental and vision benefits over life and disability.

The study confirmed a number of findings from last year's research including the fact that employees value benefits above cash. It also revealed insight into how employees chose to learn about benefits and the preferred methods for enrollment.

Despite employers offering additional ways to learn about benefits over the last year, 82 percent of respondents opted for printed materials. Online/website was a close second at 72 percent, and 44 percent sided towards group meetings.

Regardless of their preferred method of learning the survey revealed a large number of employees do not spend much time reviewing benefit information.

However, according to the study, employees who take the time to review benefits are more apt to purchase the benefit than those who did not. Employees spend the majority of time reviewing medical, dental and vision benefits, according to the study.

Finally, the study revealed several other findings about what impacts an employee's decision to enroll in employer-sponsored voluntary benefits.

The findings include:

• How will rising health insurance costs affect benefits decisions?
• Which benefits do employees value the most?
• What is the biggest factor in electing a benefit?
• Does employer funding drive higher benefits election?
• Who do employees trust most to explain and help select their benefits?