Brokers have managed to slog their way through the recession with relatively little trouble compared to their clients. Just over half of brokers and consultants surveyed by Prudential said their business had been negatively affected, compared with 68 percent of plan sponsors. Furthermore, 27 percent of brokers said they had actually experienced a positive effect from the economy, compared with only 13 percent of plan sponsors.
Strategic initiatives like employee education are taking a back seat this year to cost containment strategies, and will remain lower priority for the next five years according to the study. Nearly 60 percent of plan sponsors say they're turning to Web-based technology to reduce costs and increase efficiency. "Attempting to control benefits costs by addressing workforce health" was another top objective.
Plan sponsors have become disillusioned about how their benefits strategies and the business goals are related. In 2007, 22 percent said the two were closely linked and over 40 percent expected their goals and strategies would be aligned in five years. The current study shows 21 percent see their business goals and benefits strategies as "closely linked;" only 34 percent expect the two to be linked in 2014.
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