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How 50+ Benefits Correlate with Employee Satisfaction

April 4, 2018

Glassdoor Economic Research explored the best industries for benefits and which benefits drive employee satisfaction. In both studies, we restricted the benefits we examined to those we had the most data for in order to rigorously study them: health insurance, vacation/paid time off, 401(k) plans, maternity/paternity leave, employee discounts and free food.

However, Glassdoor’s Benefits Reviews survey collects data on many more types of benefits. Employees can rate and review more than 50 distinct employer-provided benefits, while employers can verify the benefits they offer, providing a well-rounded picture what’s offered at hundreds of thousands of companies. The survey covers a wide variety of workplace benefits and perks, including pet-friendly workplaces, employee adoption assistance, travel concierge services, company cars, mobile phone discounts and more.

To dig deeper, we wanted to understand which of these 50+ perks and benefits matter most to employees.

One simple way to do so is to show the statistical correlation between individual benefits ratings (on a scale of 1 to 5) and how employees rate their overall satisfaction with benefits packages (again, on a 1 to 5 scale).

The table below shows the full list of correlations between 54 benefits tracked by Glassdoor and overall employee satisfaction with benefits packages. The correlations range between zero and one. A correlation near one means the benefit is a good predictor of employee satisfaction with overall benefits packages, while a correlation near zero means the benefit has little impact on employee satisfaction. In other words, which benefits are more important to employees and which are less important?

GD_54_BenefitsRanking

Overall, the above results echo the findings of our earlier study: The core benefits that matter most to workers are health insurance, vacation and paid time off, and retirement plans. These core benefits are most highly correlated with employee satisfaction with benefits packages.

At the bottom of the list, we see less common benefits like fertility assistance, employer-provided child care, and travel concierge services. These benefits have almost no correlation at all with employee satisfaction. While they may be quite valuable to some employees, the data suggest most workers place a low value on these benefits.

Interestingly, many headline-catching benefits such as pet-friendly workplaces, reduced and flexible hours, and gym memberships rank near the bottom of this list in terms of correlation with employee satisfaction. Even the much-discussed benefit of free lunch and snacks ranked 16th out of 54 benefits, well behind more prosaic and traditional benefits like retirement plans.

Although the above correlations are interesting, some caution is warranted in interpreting these findings. These are just simple correlations between benefit ratings, and don’t statistically control for factors like company size or industry as in our previous, more rigorous analysis of Glassdoor benefits ratings.

Despite these limitations, the lesson of the above table is clear. While less common benefits tend to dominate media coverage, employers should not neglect core benefits such as health insurance and paid time off. The data clearly show these benefits—while less exciting than many of today’s flashy workplace perks—are still the main drivers of employee satisfaction.

For employers looking to win top talent, providing a well-rounded total compensation package that includes core benefits, fair pay and desirable perks will help them compete in a challenging hiring landscape.

Filed Under: Benefit News, Flexible Spending Accounts, Health Savings Accounts

Does The Affordable Care Act Affect COBRA?

February 27, 2015

With the passing of the Affordable Care Act, many are asking now “How does this affect my COBRA?” The passing of the Patient Protection and Affordable Care Act did not eliminate or change the COBRA rules.

COBRA, the Consolidated Omnibus Budget Reconciliation Act of 1986 allows workers and family members the option to continue on their prior employers group  medical plan for a specific number of months.  If your prior company had 20 or more employees in the previous year and they offered a group health plan, then COBRA would apply to your company.  If your previous company had less than 20 employees in the previous year and offered a group health plan, then Colorado Continuation of Benefits would apply to your company.

The employee count must include part time and part time equivalent employees.  To determine if you are eligible for COBRA or Colorado Continuation of Benefits the rules are as follows:

With COBRA, you are eligible after 1 day of being covered under your employers plan. Colorado Continuation of benefits requires that you are covered under your employers group health plan for at least 6 months, then you would be eligible.

The qualifying events that would enable you to secure coverage under COBRA or Continuation of Benefits in Colorado would include:

  • Termination of employment (Voluntary and Involuntary)
  • Death
  • Divorce
  • Eligibility for Medicare
  • Change in employment, Full Time to Part Time
  • Military recruitment

The coverage you are eligible for under COBRA or State Continuation is usually the exact same plan that was in place prior to your qualifying event.

The length of coverage for COBRA and Continuation of Benefits is normally 18 months, but certain qualifying events could allow you to extend your coverage to 36 months.  For example, if your spouse dies you would be allowed to continue on Cobra for 36 months.

If you are eligible for COBRA or Colorado Continuation of Benefits you might also qualify for a subsidy through the Connect For Health Colorado marketplace plans.  Researching whether or not you qualify for a tax credit might enable you to save some money and give you another option to investigate before signing up for COBRA or Continuation of Benefits.

Please note you have a certain period of time to notify your previous employer if you want to elect the COBRA or State Continuation of Benefits.  With COBRA you have up to 60 days to elect coverage.  With State Continuation you would have only up to 30 days for this election.

Keeping these deadlines in mind, you have actually more options since the passing of Affordable Care Act to decide whom you would like to continue your medical coverage with after you have experienced some type of qualifying event.

Please refer to this form on COBRA vs State Continuation of Benefits for more detailed information.

Filed Under: Affordable Care Act, Benefit News, COBRA

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