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What Iowa Employees Value Most – Lessons to be Learned?

March 20, 2013 By

Iowa Employment Values StudyAlthough it has been six years since we completed the “Iowa Employment Values Study,” the lessons learned are still important today. In fact, in some cases, we may assume the results are…timeless!

This Study was conducted in 2007 to better understand the opinions, perceptions and values of Iowa employees and how they differ from those of executives in Iowa organizations. With assistance from Data Point Research, Inc., almost 700 people were interviewed from 56 different organizations. Executives numbered 159 while 537 were employees.

The intent of the Study was to ask employees what 11 key workplace ‘values’ were most important to them – and if these values would keep them employed at their particular organization. In addition, we asked the executives within these organizations to rate how important these same values were to their employees. As you might expect, the results were both revealing and, in many cases, reassuring.

The 11 key employment workplace values are listed below in descending order of employee preference. This table clearly shows that:

  • Employees regard every value statement as more important than executives realize.
  • The order of importance of those values to employees was clearly misunderstood by Iowa executives.

NOTE: The questions were presented to respondents using Likert scales. Scored on a 1 to 100 scale, the highest number represents the most positive response.

 Values Study - Workplace Values

From the table we learn that executives understand Respect at the workplace and a sense of Achievement on the job are very important values to their employees. However, when ranked, executives mistakenly believe that Job Security, Money, Employer Leadership, Benefits and Personal Safety are all more important to their employees than the opportunity to Balance work time with family needs.

Here’s the big takeaway from the above table:

THE GREATEST ERROR OF EXECUTIVES IS UNDERESTIMATING THE IMPORTANCE OF WORK-LIFE BALANCE TO THEIR EMPLOYEES.
The importance of employees having a well-rounded lifestyle is critical to the mental well-being of employees – and Iowa employers should take note.

Some other interesting findings from this Study that may be worth noting, include:

  • By Gender: Female executives are in-tune with female employees. In contrast, male executives underestimated the importance of many values to both male and female employees. The largest disconnect being the importance of Balance and Time to their female employees.
  • By Age: Separated into categories of those younger and those older than 50 years of age, executives under 50 underestimated the importance of workplace values for their employees in all 11 categories. Employees, regardless of age, rated workplace values similarly.
  • By Generation: Generation X employees (born between 1967 – 1976) rated Money as the second least important workplace value, considerably lower than the other generations. All generations of executives significantly underestimated the importance of Balance and Time to all generations of employees.
  • By Income: Lower paid executives clearly underestimated the importance of 10 of the 11 workplace values to employees who earn less than $50,000 (79 percent of the respondents).

This survey was conducted before the full impact of the Great Recession – which began in 2007/2008. My suspicions, however, are that many employee and executive views in today’s environment may be relatively similar to those views found within this Study. Having Respect, a sense of Achievement and a work-life Balance are most assuredly timeless values…

Iowa employees value Respect, Achievement and the opportunity to Balance work time with family needs as most important, even more important than pay. In today’s globally competitive environment, Iowa employers will need to create a culture that is more responsive to these employee needs and values to attract and retain qualified employees. Being appreciated and valued on the job is the number one value to employees. When asked “What is the one main thing your organization could do better?” the answer: “Show appreciation for hard work,” was consistently heard. This is not an expensive solution, as appreciation can be effectively expressed in a non-monetary way.

Similarly, employees who are proud of their organization were significantly more positive about all aspects of their job. Employers are best served to communicate accurate details about the organization to employees and foster employee pride. Organizations may also consider flextime programs that allow for individual needs, as employees responded overwhelmingly in this Study that they value a healthy work and family balance.

I will continue to ‘dust off’ other gems found within this report, which to my knowledge, was the first study of its kind within Iowa that objectively addressed the disconnect between employer-employee opinions on employment values. Performing another Study similar to this one is definitely on my wish list for the future!

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Lindex® to be Released Soon!

December 12, 2012 By

David P. Lind BenchmarkDuring the second week in January, we will be releasing the Lindex score to the general public. In addition, 2012 Iowa Employer Benefits Study© participants who scored above the statewide “average” will receive their Lindex number prior to Christmas. Below is an explanation of the Lindex and why it matters to Iowa employers.

What is the Lindex®?

There is a vast array of employer benefits and insurance options and costs. How do employers know which sets of benefits are best? It is too difficult to take all of these variables into account. The Lindex simplifies this process. The Lindex is a complex algorithm that measures the availability, costs, and use of many key benefits and provides an indexed number between 0 and 100. It permits organizations to benchmark and compare their benefits to those offered by other organizations across Iowa.

Why should an employer use the Lindex®?

Employee benefits data can be both voluminous and complicated for any employer. The Lindex distills this data into one relevant number to provide clarity. Employers alter their benefits offerings as they adapt to changing economic conditions, but when doing so, they have no way of knowing whether such changes may put them at a competitive disadvantage when recruiting and retaining qualified employees. The Lindex simply allows the employer to compare their overall benefit offering to other employers on an on-going basis. As benefit offerings change, the employer will understand their competitive position at all times. All major benefits offered by employers are factored into the Lindex “score.”

How is it calculated?

About 1,000 organizations participate in the Iowa Employer Benefits Study© on an on-going basis each year. The Lindex is calculated from these study results. It is based on a variety of factors including types of benefits offered and employee costs associated with those benefits. The Lindex ranges from 0 to 100, with low scores indicating fewer and more expensive benefits, and higher scores indicating more benefits being offered at a lower cost.

How do organizations interpret the Lindex®?

As stated, the Lindex ranges from 0 to 100. A higher score indicates that an organization offers its employees more benefits at lower costs. However, benchmarking is important. The Lindex is calculated annually statewide and for each of several industries. An organization can assess their benefits compared to others in their industry throughout the state. For example, an organization with a Lindex of 68 might appear to be somewhat low, but if this score is above the average Lindex score for similar organizations then it could be considered a good score for your organization.

Why can employers trust the Lindex®?

Since 1999, David P. Lind and Data Point Research have conducted over 10,000 interviews with Iowa organizations. Depending upon the benefits offered by each organization, over 250 variables have been collected. That is a lot of information! When combined with the other research conducted, such as the Iowa Employment Values Study© and the professional expertise of David P. Lind Benchmark, the Lindex is an accurate, unbiased summary on employee benefits in Iowa.

How can the Lindex® help employers?

The Lindex provides benefits information from organizations throughout Iowa that can be used to assess, compare and improve your benefits offerings. Organizations can use their Lindex score as a recruiting tool to attract and retain high quality employees. Others can use it to determine whether benefits changes are required to keep their benefit offerings competitive with similar organizations.

How frequently is the Lindex® calculated?

On a statewide level, the Lindex is calculated once a year. New industry-level Lindices are published in addition to Lindices for the four Iowa Congressional Districts. New Lindices will be segmented by employer size, industry, as well as by congressional district.

This new measurement is not only unique to Iowa but to the country as a whole. Stay tuned for more information after the holidays!

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Numbers Within A Number

October 24, 2012 By

2012 Iowa Employer Benefits StudyAs reported in last week’s blog and Press Release, Iowa employers reported receiving an average seven percent increase to their health insurance from 2011 to 2012. Despite this decelerating increase, smaller Iowa employers continue to receive higher increases than their larger counterparts. Without exception, this variance has occurred every year since our study began in 1999.

It is with larger increases that the smaller employer is forced to make major adjustments to their health insurance plan designs – such as migrating to larger deductibles and out-of-pocket maximums. By increasing the cost-sharing arrangement with employees, the smaller employer is able to find some relief in the premiums they pay to insurance companies. However, each subsequent year, the smaller employer receives higher increases again. This vicious cycle is difficult not only for the employer, but to their employees and family members.

Unlike the small employer, larger employers have more options available to combat escalating premium adjustments. Large employers have:

  • More leverage to negotiate with insurance vendors
  • Greater ability to self-insure their health plan (when it makes sense) by utilizing many different financial tools
  • Personnel to help implement, promote and monitor Wellness Programs
  • Access to claims data allowing the employer to analyze key medical issues inherent within the organization

Employers offer many different types of health plans. The preferred provider organization (PPO) is the most frequently offered plan for all employer size categories here in Iowa. In 2012, over 62 percent of Iowa employers offered PPO plans. Employers with PPO plans reported receiving the lowest premium increase compared with other plans offered by Iowa employers. The average increase reported by employers with PPO plans was 6.5 percent. Interestingly, employers with consumer-driven plans with health savings accounts reported receiving an average increase of 10.5 percent.

Finally, employers located in rural parts of the state have reported lower increases to their premiums (6.1 percent) when compared to their urban counterparts (7.7 percent). Part of this reason, I believe, may be due to rural employers offering PPO plans more often (63.3 percent) than do urban employers (61.8 percent). The cost of rural care can be less than in the state’s metropolitan areas.

2012 Iowa Employer Benefits Study

 

Statistics can be interesting. When digging down deeper, we learn many fascinating things not readily found at the surface.  More to come!

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Filed Under: David P. Lind Tagged With: , , ,