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0189062-00001-00
Worker Productivity as the Next Frontier in Benefits Cost Management
A Companion Report to Prudential’s Fifth Annual Study of Employee Benefits: Today & Beyond
• Currently, about half of plan sponsors surveyed (49%) cite increasing worker productivity
as a “highly important” benefits objective. Productivity-focused strategies include
wellness initiatives, absence management, and benefits integration, among others.
• Brokers/consultants are on the same page. Roughly 40% agree that expanding the
use of wellness/preventative/work-life balance initiatives is “highly important” to their
clients. Half of those surveyed say they are recommending to some extent that their
clients provide accommodations to assist employees in returning to work (50%)
or undertake some form of benefits integration (54%).
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Benefits integration efforts show promise in improving productivity and reducing
health care costs.
• More than half of plan sponsors (57%) who are involved in benefits integration activity say
they currently have measurable cost-savings goals in place. Their top goals are to help
lower their health care related costs and to increase the productivity of their workforce.
Source: Preliminary results from Prudential’s The 2010 Market for Integrated Health Care and Disability Management Study.
• Just over half (52%) of plan sponsors currently involved in benefits integration indicate
that they have been successful in achieving their desired cost savings goals; 26% say
their program has been “highly successful.” More specifically, among those that identify
their top goals as “lowering health care costs” or “improving productivity,” most say
that their integration efforts have produced at least “modest improvement.”
33% 48%
27% 32%
21% 27%
22% 19%
58% 57%
52% 52% 54% 54% 52%
41%
Source: Preliminary results from Prudential’s The 2010 Market for Integrated Health Care and Disability Management Study.
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Return-to-work initiatives have been successful in generating cost savings as
well as productivity gains.
• In 2007, return-to-work initiatives were the most common cost-management strategies
among plan sponsors surveyed with 39% indicating involvement to some extent. Today,
45% report utilizing return-to-work initiatives with 63% having implemented their program
at least three years ago (42% launched more than five years ago).
• Many plan sponsors that are providing return-to-work accommodations (62%) report that
their company is also tracking employee absences as a way of managing the productivity
of their workforce. Among these plan sponsors, nearly three-quarters (73%) say their
absence tracking system has been effective in terms of helping their company to
improve the productivity of its workforce; nearly half say it has been “highly effective.”1
4
Data analytics plays a key role in achieving success with benefits integration efforts.
• Most employers involved in benefits integration activities utilize data analytics to
measure the impact of their benefits programs. Currently, two-thirds say they are able to
view data across a combination of their various health plans, including medical, wellness,
disability, workers’ compensation, and employee assistance programs. Fifty percent of
those not using data analytics have a strong interest in doing so.
• Many plan sponsors are also using predictive modeling tools to assist in analyzing
benefits plan data, especially for medical plans. Nearly 6 in 10 plan sponsors (57%)
involved in benefits integration indicate that their company uses predictive modeling
tools to assist in analyzing medical plan data. Just over half (53%) of those using
predictive modeling tools say that their company pays a fee for access to those services.
• There is evidence that using data analytics helps a company with integration and its
success. Plan sponsors who use data analytics are more likely to report higher levels of
integration as well as higher levels of success with their integration efforts. Among firms
that report a “high degree” of success with their integration strategy, 91% are using data
analytics across their health plans (compared to 45% of those reporting “low success”).
91%
68%
45%
Source: Preliminary results from Prudential’s The 2010 Market for Integrated Health Care and Disability Management Study.
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Prudential’s Fifth Annual Study of Employee Benefits: Today & Beyond was conducted
via the Internet during April and May of 2010 and consists of three distinct surveys:
The research was conducted for Prudential by the Center for Strategy Research, Inc.,
an independent Boston-based market research firm.
The Prudential Insurance Company of America, 751 Broad Street, Newark, N.J.
© 2010 The Prudential Insurance Company of America.
Prudential, the Prudential logo and the Rock symbol are service marks of Prudential Financial, Inc. and its related entities.
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