Greater Emphasis on Communication Needed To Enhance Employee Satisfaction

WASHINGTON, Aug. 29 2001/PRNewswire/--Employers are not getting a good return on investment in their health care benefits programs, according to a recent Watson Wyatt survey of 10,000 employees at 18 companies.

Consider these findings:

• Only 43 percent of the workers surveyed are satisfied with the overall performance of their health plan.

• Sixty-three percent of employees underestimate total health plan premiums for their coverage, while 69 percent overestimate the portion of the plan premiums they pay.

• Less than one-half (48 percent) trust their employer to design a health plan that will provide the coverage they need, while 47 percent think better health plans are available for the same cost.

• Most employees surveyed rate their health benefits as less competitive than other components of their total benefits package.

While increasing costs and poor health plan performance are important reasons for employee dissatisfaction, misinformation and inaccurate perceptions also can undermine satisfaction," says Steve Richter, a senior health care consultant with Watson Wyatt and co-author of Watson Wyatt's 2001 Best Practices in Health Care Vendor Management Study. "The results of the study clearly indicate that employers could improve return on investment by helping employees better understand their plans and the value of their benefits."

Indeed, the report suggests that more effective employee communication can increase satisfaction and enhance employees' perception of their health plan. Among employees who are satisfied with their health plan's communications, 66 percent are satisfied with their health plan; for those employees not satisfied with the plan's communications, only 14 percent are satisfied with their health plan.

The study, which also included face-to-face interviews with 255 large employers, examined the potential value and risks associated with outsourcing various health plan management activities. According to the study, outsourcing strategic activities such as strategic planning, plan design and vendor selection could threaten plan cost and employee satisfaction.

"However, employers can improve benefit management outcomes by focusing internal resources on functions most critical to cost and satisfaction, while considering co sourcing or outsourcing for less critical functions," says Roland McDevitt of Watson Wyatt's Research and Information Center. "The best candidates for outsourcing are operational activities such as renewal negotiation, performance monitoring and developing communication materials. But employers will need to maintain oversight to ensure goals are met and that communications reflect the company culture."

Copies of the survey report, Maximizing the Return on Health Benefits: 2001 Best Practices in Health Care Vendor Management, are available at http://www.watsonwyatt.com/homepage/us/res.htm.

Watson Wyatt is a global human capital consulting firm that provides services in the areas of employee benefits, human resources technologies and human capital management. Watson Wyatt has more than 6,100 associates in 29 countries, with corporate offices in Washington, D.C. and Reigate, England. For more information, visit http://www.watsonwyatt.com.

Hear an excerpt read of Jack Doer's comments to a Employee Benefits Review Interview (10/97) on the improvement of employee benefit plans just by keying on communication.