Sibson: Employee Satisfaction with Benefits Slides in 2006

May 25, 2007 ( - Employees are slightly less satisfied with their benefits packages and compensation than they were three years ago, according the most recent result from Sibson's Rewards of Work Study.

The study of 1,200 individuals revealed a marginal, but steady decline in benefits satisfaction over the past six years, with 69% saying they were satisfied in 2006, compared with 70% in 2003 and 71% in 2000.

Satisfaction was down in nearly all of the five benefits areas followed by Sibson, except time off, where it was stagnant at 74% from 2003 to 2006. In the other areas measured by the study, the results are as follows:

  • Retirement Benefits Satisfaction, 46% in 2006, down from 52% in 2003
  • Benefits Level Satisfaction, 64% in 2006, down from 66% in 2003
  • Benefits Administration Satisfaction, 58% in 2006, down from 62% in 2003
  • Health Care benefits satisfaction, 54% in 2006, down from 60%.

Workers were barely more satisfied with 2006 compensation than benefits, with 70% saying that was the case, compared to 71% in 2003 and 72% in 2000.

The study indicated that the most common health care coverage offered by employers was a PPO (57%), followed by a health maintenance organization (HMO) or point of service (POS) (36%), consumer-driven health plan (16%), retiree medical coverage (9%). Four percent of respondents said their employer offered no form of health coverage.

In terms of retirement savings accounts, the most common by far was a 401(k) plan or some other form of defined contribution plan, with just more than three-quarters of respondents who said their employers offered the benefit. Defined benefits plans were offered by 29% of employers, hybrid/cash balance plans, by 5% and an equal amount said their employer offered no retirement plan (5%).

For a full copy of the Sibson study visit