Iowa Employer Benefits Study

Iowa Employer Benefits Study© on ‘Hold’
Plus: The Great Resignation

November 24, 2021 By David P. Lind

Iowa Employer Benefits Study^©

I have decided to put a ‘hold’ on the Iowa Employer Benefits Study for 2022 and into the indefinite future. Although the COVID-19 pandemic was not helpful to this annual survey, changes in the background research resources that I had relied on for the past two decades have also impacted the long-term viability of pursuing this important survey.

Data Point Research, Inc. (DPR), my trusted research partner for twenty years, no longer offers its excellent survey services. Our history of joint collaboration was immensely important to having both accurate and consistent data when trending benefits and costs in Iowa. I will miss my long-term relationship with Andrew Williams, founder of Data Point Research, but just as importantly, I have been very fortunate to call him a great friend and professional colleague. My best to Andrew!

I also owe a great deal of gratitude to those organizations, consultants and brokers who purchased blocks of the Lindex^® benchmarks and studies over the years. Without their support and loyalty, the Iowa Employer Benefits Study would not have been as relevant and successful.

Finally, since 1999, the first year this annual study was performed, over 15,000 Iowa organizations have participated in this random survey process. I am proud that our survey results have provided Iowa employers with reliable, relevant, and customized information that cannot be found anywhere else in Iowa. This comprehensive statistical review of Iowa employee benefits has been a key resource for Iowa employers and policy makers. I am very thankful to the Iowa organizations that have taken the time to dutifully respond to this survey. Without their annual assistance, this study would not have been possible.

Although this study has been put on hold, future assessments are certainly possible.

The Great Resignation

According to the U.S. Department of Labor, a record 4.4 million Americans quit their jobs in September alone (4.3 million in August). In fact, according to data from the people analytics firm Visier, at least one in four people quit their jobs in 2021. A PwC survey indicates that 65 percent of people were looking for a new job as of August.

Since experiencing work place changes due to the COVID-19 pandemic, employees are now expressing their work culture and location preferences and finding opportunities elsewhere. This has become a big wake-up call to organizations in Iowa and around the country – its a phenomenon known as the GREAT RESIGNATION of 2021.

Without question, employee benefits are extremely important when attracting qualified employees. But employee retention requires adhesive steps that will serve as ‘glue’ to keep employees both happy and on the payroll. What is this special glue? It begins by having a culture that permeates throughout the organization that promotes work-life balance and invites a sense of trust and belonging.

Employees are quitting their jobs in food, retail, hospitality AND in higher-paying jobs in many other industries. These employees no longer wish to commute to work and want to learn new skills to grow beyond their current job opportunities. Job dissatisfaction varies across demographics and occupations, according to a recent article in the Wall Street Journal. Work-life balance and flexibility was important to employees prior to COVID-19, but it has become more pronounced during the pandemic and its importance is here to stay. Pay equity and child care are critical issues for many who are dissatisfied with their current employment arrangement.

We certainly found this in our 2007 Iowa Employment Values Study. In the workplace environment, employees value respect, achievement and having the opportunity to balance work time with family needs as most important. To attract and retain employees, employers will need to create a culture that is more responsive to employee needs and values. In an uncertain labor market where job openings outnumber applicants, assessing the local market of employee desires and sources of discontent will be crucial for any employer to stand out.

It is time for employers to evaluate existing employment practices and look for new opportunities to meet the expectations of their employees. Employers want their employees to be committed to their jobs, but employees want employers to show commitment to them. It is a two-way street.

If the COVID-19 pandemic has taught us anything, it is to be honest with ourselves and others – and then act accordingly!

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Filed Under: David P. Lind, Lindex Tagged With: 2007 Iowa Employment Values Study, Data Point Research, David P. Lind Benchmark, Great Resignation, Iowa Employer Benefits Study, Lindex, Wall Street Journal

2021 Iowa Employer Benefits Study
POSTPONED

April 14, 2021 By David P. Lind

As many of you are aware, the Iowa Employer Benefits Study was not performed in 2020. The reason was quite simple – the unprecedented uncertainty facing most Iowa businesses during the Covid-19 pandemic. As difficult as the decision to postpone was, it was no doubt the right one.

In early 2020, during the beginning of the pandemic, we attempted to perform the survey and quickly learned that fewer organizations desired to be interviewed, which prompted us to suspend the survey process. The cost to perform surveys increases if more organizations need to be interviewed.

Now in 2021, another tough decision has been made. After visiting with many individuals and organizations, I have concluded that 2021 is just too soon to pursue this important survey. I could certainly randomly interview 1,000 Iowa organizations, but many organizations are still digging out of massive business and personnel upheavals that will require a ‘reboot’ of their workplace practices.

We understand that many individuals who respond to our surveys are charged with multiple organzational tasks that come with time pressures. My desire is to be mindful of the key issues facing employers and to, yet again, refrain from being an additional distraction during this time. I do look forward, however, to performing an assessment this fall about whether to pursue the 2022 survey. By that time, we will have a much better idea of what changes Iowa employers will have made in their workplaces and how these changes may impact future workplace environments.

I am confident that 2021 will prove to be a year of great progress in overcoming the personal and professional challenges we have all endured.

Please continue to stay safe!

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Filed Under: David P. Lind, Lindex Tagged With: David P. Lind Benchmark, Iowa Employer Benefits Study

New Kaiser Survey on Employer Health Coverage Released

October 13, 2020 By David P. Lind

Nearly every September for the past two decades, I have released our survey findings from the Iowa Employer Benefits Study and, during that same month, would eagerly await the results from the annual Kaiser Family Foundation Employer Health Benefits Survey. The Kaiser findings put a complementary national perspective to our Iowa results.

Unfortunately, due to the Covid-19 pandemic, I pumped the brakes on surveying Iowa employers for this year. Kaiser, however, did pursue their national survey and it was released a little later than usual – on October 8. The results provide an important glimpse into what is happening to employer-sponsored health insurance around the U.S. Overall, Kaiser surveyed 1,765 non-federal public and private organizations with three or more employees, and from this number, 540 employers were located in 12 Midwestern states (an average of 45 employers per state). The Kaiser study, I must mention, does not break out the results by each state, only by region.

Key Findings by Kaiser

The Kaiser survey is very helpful because it documents national health trends for employer-sponsored plans. Some of the key findings in 2020 include the following:

About 56 percent of employers offer health benefits, a percentage that remains unchanged over the past five years. Similar to Iowa, the larger the employer, the more likely health benefits are offered. About half (53 percent) of U.S. organizations with fewer than 50 employees offer health coverage, and nearly all (99 percent) of the organizations surveyed by Kaiser with at least 200 employees offer health coverage.
The average single and family premiums increased by four percent over the past year, while worker’s wages increased by 3.4 percent and inflation increased by 2.1 percent.
The average annual premium for single health coverage is now $7,470, while the average family health premium is at $21,342. Over the last five years, the family premium has increased over 22 percent, and over the last 10 years, it has increased 55 percent.
On average, covered workers contribute 17 percent of the total single coverage premium and 27 percent of the premium for family coverage. In our 2019 Iowa study, we found that covered workers contributed 18.6 percent for single coverage while workers for family coverage contributed 30 percent of the premium.
The average single deductible found by Kaiser now stands at $1,644, which is remarkably similar to last year’s $1,655 average. In 2020, 83 percent of covered workers have a deductible in their plan, similar to last year.
Most large organizations (81 percent) offer at least one type of wellness or health promotion program. However, among those that offer the coverages, only 11 percent) view the programs as “very effective” at reducing the organization’s health care costs.
About 83 percent of surveyed employers who offer health benefits say they are satisfied with the overall choice of providers available through their insurance plans, however, only two-thirds (67 percent) say the same about their mental health and substance abuse networks.

The 2020 Kaiser survey was conducted from January to July, with about half of the interviews conducted before the full extent of the pandemic had been felt by surveyed employers. Kaiser President and CEO Drew Altman acknowledged, “…our survey shows the burden of health costs on workers remain high, though not getting dramatically worse. Things may look different moving forward as employers grapple with the economic and health upheaval sparked by the pandemic.”

Because of this, next year’s survey will provide a more realistic look at how the pandemic may have impacted employer-sponsored health benefits in the U.S.

To learn more about the Kaiser study, the article was published in the peer-reviewed journal Health Affairs.

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Filed Under: David P. Lind, Lindex Tagged With: david P. Lind, Drew Altman, Iowa Employer Benefits Study, Kaiser Family Foundation

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