HR/ BENEFITS

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Workplace the Primary Financial Supermarket for Many

April 7, 2008 (PLANSPONSOR.com) - A new study finds 52% of working Americans are now getting the majority of their financial and retirement products through the workplace - up from 46% a year ago.

A MetLife news release about its Annual Employee Benefits Trends Study, said the research found that the workplace has become the dominant starting point for building a strong financial safety net. Growing financial concerns among employees are also creating a greater interest in advice and guidance at the workplace.

Some 44% of employee respondents indicated they would like access to general financial planning advice at work, up from 30% last year, the release said. Nearly half (49%) of all employees also said they want their employers to provide retirement advice.

"This increased employee appetite for advice at the workplace is a significant development," said Bill Mullaney, President, MetLife Institutional Business, in the release. "It presents a tremendous opportunity for U.S. employers to optimize the real and perceived value of their benefit plans. Having a benefit program that meets the diverse needs of their employees - and communicating more frequently about benefit offerings - can result in improved employee retention, which continues to dominate employers' minds as their top benefits objective."

Additional study findings included:

  • Employers underestimate how important benefits are to employee loyalty; benefits are increasingly important factors in employees' decisions to remain with their employer. Some 72% of employees said retirement benefits are an important factor in loyalty, where only 41% of employers said the same.
  • Employer focus and spending on retiree benefits is expected to increase; employees have strong interest in retirement benefits.

When asked about the importance of benefits in retention and workplace loyalty, retirement benefits and advancement opportunities tied for the third most critical factor for employees, behind salary/wages (first) and health benefits (second).

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