Previously in COVER, Denplan highlighted the importance of dental benefits in early detection of wider general health issues. But, asks Colin Perry, if we are going to sell dental benefits, what do customers think?
In order to give intermediaries the best possible insight when it comes to selling dental plans it is necessary to evaluate the wider attitudes of both companies and employees. The release of Denplan's Dental Benefits Survey 2014 will hopefully allow such insight.
Over the past 12 months, company decision makers have continued to review their benefits within a difficult economic climate, alongside looming costs to their business complying with legislative changes such as auto-enrolment.
When asked which factors were most important when selecting employee benefits, it is no surprise that they rated value for money (51%) and cost (50%) high on their priority list.
As a sign the message is getting through, some of the other influencers listed in this year's survey included ‘enhancing employee wellbeing' (42%) and ‘listening to employee feedback' (38%). Interestingly, some factors have also moved down on the priority list over the years, including ‘regularity of use', which has shown a 6% decline over the last three years.
When looking specifically at which healthcare benefits company decision makers rate most highly, a third (33%) report that their employees rate childcare vouchers the most valued.
However, dental plans have noticeably increased in perceived value, with a 6% rise over the past three years taking the proportion of employees who value it most highly to 25%. The most surprising result, perhaps, is that health screenings
have shown a rapid incline over the past three years, consistent with the rise in this type of screening offered by employers and the increasing influence
of employee feedback.
Employee health and wellbeing has increased dramatically in importance for larger companies, and many employers have recognised the impact a healthy workforce has on motivation and performance.
Culture is also important. Company decision makers stated that the most influential factor their dental plan provided was that dental plans fit within their company ethos and show they care about employers (84%).
There has also been a significant rise in employers agreeing that a dental benefit helps to manage time taken off for sickness, rising to more than half (68%)
of respondents.
There is a strong correlation between the size of a company and the benefits offered to employees. For example, smaller companies are much less likely to offer benefits - with only 57% arranging benefits schemes for their employees, compared with 95% of larger organisations. Health screenings have gained popularity, becoming the second most popular benefit with one in four (25%) companies choosing to add the plan.
The least attractive benefit remains employee assistance programmes, which is currently being added by 12% of respondents and removed by 6%.
The most offered benefits consistent across company size are childcare vouchers and health screening. A significant increase has been noted in the number of large companies (51%) offering a dental plan to their staff, while 41% of medium-sized companies offer such a plan - statistics that have doubled compared with the 2013 responses. The proportion of small companies offering dental benefits has also grown from 10% to 17%.
Perhaps the most noteworthy figure, however, is that 46% of companies are considering adding a dental plan in the coming year.
When employees were asked to rank their main influencers in selecting a benefit scheme, the priorities were very similar to those of the company decision markers - cost and value for money. However, there are a few notable differences when segmenting employee responses by company size.
Employees from smaller companies, for example, are more likely to value costs than those from medium and large firms. Responses from medium-sized companies show the least important factor for most staff (67%) is choosing a benefits policy that will cover them for unforeseen events and emergencies - down 19% compared with last year and far lower than small and large-sized employees.
The majority of respondents (78%) reported their company offered at least some health and wellbeing benefits, with the range continuing to be varied. Similarly to last year, childcare vouchers remain a key benefit for 36% of respondents.
PMI decline
The proportion of respondents offering PMI has shown the most noteworthy decline in the past 12 months, dropping to 17%. In contrast, there has been a significant rise in the proportion of respondents offering health screenings and gym membership subsidies, rising to 37% and 30% respectively.
More than a third (35%) of respondents said they offered a dental plan to their staff, becoming the third most popular selection. Dental plans are taken up by more than a third of those employees offered them, and more than three-fifths of dental plans are partly paid for by the employee.
Denplan also asked employees working for employers that do not offer a dental benefit about their attitude towards dental plans. The feedback highlighted that 63% of employees would consider one if offered, while 54% said they would appreciate access to one as part of a package.
