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Employers Say Voluntary Benefits Lower Costs: Pru

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More employers will be targeting internal communications to improve employees’ understanding of the value of their benefits, a study by Prudential Financial Inc. finds.

Plan sponsors offer voluntary benefits more so for employee retention and satisfaction, rather than for cost savings,

According to the Study of Employee Benefits: 2008 & Beyond by Prudential, Newark, N.J., 38% of employers agree that these programs have had a positive impact on employee satisfaction with their benefits programs overall, while 46% of employers say that offering voluntary benefits has helped to lower overall benefits costs.

Pru also found employers expect an aging and increasingly multigenerational work force will have a rising influence on benefits.

The study found that 21% of plan sponsors cite a multigenerational work force as highly important today in influencing benefit choices, while 27% cite an aging work force as highly important. However, in 5 years, 37% think a multigenerational work force will have an important impact on benefits, while 53% think an aging work force would have an important impact.