Survey Finds Many Lack Understanding About This Key Benefit Option
NORTHBROOK, Ill., Dec. 19 /PRNewswire/ -- Employers looking for a way to
cut costs while increasing employee satisfaction may find both by offering
supplemental insurance as an optional benefit, according to a recent survey of
small business owners conducted by Inc. Magazine and the Allstate Workplace
Division, a business unit of The Allstate Corporation (NYSE: ALL).
The survey also found that nearly half of small business owners surveyed
-- 43 percent -- admit to having very little or no knowledge about
supplemental insurance.
Supplemental insurance policies, which are issued to and paid for by the
individual rather than the employer, generally help enhance primary health
plans by providing direct-to-the-policyholder cash benefits to fill gaps in
traditional health insurance coverage, such as deductibles, out-of-pocket
expenses and loss of earning power. Supplemental insurance, also available
as a group voluntary program, includes products such as accident, cancer,
short-term disability and hospital indemnity.
"To remain competitive, it's critical for a small business owner to
understand all facets of their business, and that includes employee benefits,"
said Lee Jones, publisher of Inc. Magazine. "There are certain misnomers about
employment benefit offerings that have impaired small business owners and
their employees. Continued lack of awareness about such services can hinder
the advancement of many small businesses."
Small business owners who know about supplemental insurance recognize its
benefits to employees. Seventy-one percent of respondents feel it enhances
the overall benefits package for employees and more than half (53 percent)
agree it provides peace of mind for employees if an emergency arises.
Additionally, about one-third recognize it allows employers to keep health
insurance costs down, has the convenience of automatic payroll deduction to
employees and is free to the employer.
Health, wealth and happiness
While the soft economy has driven many corporate giants to cut costs and
reduce headcount, small business owners struggle to find and keep talented
employees. Survey results indicate that competition for the best workers with
other employers (30 percent) and recruitment and retention (19 percent) are
among the biggest challenges facing small business owners. Results also show
that small business owners realize the importance of benefits, but they may
have a limited understanding of how to use benefits as a recruitment tool:
-- While 78 percent believe it's important to offer employees quality
insurance benefits, 78 percent also believe -- often mistakenly -- that
the costs and time required for providing these benefits is too high.
-- A mere 12 percent utilize the benefits of supplemental insurance as a
tool for recruiting AND retention.
-- Sixty-eight percent of those surveyed cited a casual dress code as a
primary tactic to recruit and retain employees.
"Recruiting and retaining a quality employee boils down to what you can do
for them," said David Bird, president of Allstate Workplace Division, a
business unit of The Allstate Corporation. "Savvy business people know that
offering low-or no-cost perks can enhance the overall satisfaction of
employees. There is little doubt that benefits such as offering a casual
dress code may create a more comfortable work environment. Yet, offering
supplemental insurance can enhance overall job satisfaction and productivity
for employees in the long run, while keeping employer costs down. "
Shifting priorities
In the midst of an economic downturn, some small business owners have
turned their attention away from employee benefits in order to focus on
profitability and the increasingly competitive marketplace. The Inc./Allstate
Workplace Division survey found that 47 percent of small business owners agree
they could use the help of an outside company with employee benefit matters.
When asked what would help them spend less time on employee benefits, 44
percent said they would like someone else to manage benefit issues.
The survey was created by Inc. Magazine in conjunction with Allstate.
Using an online methodology, results are based on responses from 170 Inc.
Magazine subscribers with the majority being small business owners themselves.
The margin of error is +/- 5 percent.
The Allstate Corporation (NYSE: ALL) is the nation's largest publicly held
personal lines insurer. Widely known through the "You're In Good Hands With
Allstate(R)" slogan, Allstate provides insurance products to more than 16
million households and has approximately 12,500 exclusive agents and financial
specialists in the U.S. and Canada. Customers can access Allstate products
and services through Allstate agents, or in select states at allstate.com and
1-800-Allstate. Encompass(SM) and Deerbrook(R) Insurance brand property and
casualty products are sold exclusively through independent agents. Allstate
Financial Group includes the businesses that provide life insurance,
retirement and investment products, through Allstate agents, workplace
marketing, independent agents, banks and securities firms.
Founded in 1979, Inc. magazine is the premier U.S. publication for growing
companies. Inc provides hands-on advice, case studies, and big-picture
overviews on the state of small business in the U.S. The magazine is published
thirteen times a year and has a total audience of 1.4 million. Inc is owned by
G + J USA Publishing, which also publishes Fast Company, Child, Family Circle,
Fitness, Parents and YM.
SOURCE Allstate Corporation
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CONTACT:
Laura Margolis of Allstate Media Relations,
+1-847-402-5600
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