The document summarizes key findings from a 2014 survey of C-suite executives and HR/benefits managers on trends in employee benefits. The survey found that while opinions are split on the impacts of healthcare reform, it is driving changes to benefits. Top objectives are improving productivity, retention and morale. Most companies measure ROI of benefits and feel effective at it. Short-term goals center on productivity and costs, while long-term focuses more on costs. Many companies have already made changes to benefits like increasing employee premium share and reviewing spouse coverage.

1. White paper
2014 Employee Benefits Trends Survey
Trends in employee benefits: Perspectives
from the C-suite and HR/benefit managers
Wells Fargo Insurance Employee Benefits Practice | January 2015
“The landscape for employee
benefits is ripe with many
opportunities. As evidenced
by the results of our first
employer trends survey,
companies continue to
perform a delicate dance —
thoughtfully refining their
human capital approach
to maximize employee
productivity, retention and
morale, while still striving
to create savings in overall
benefit costs.”
— Dan Gowen, national practice
leader for employee benefits,
Wells Fargo Insurance

2. White paper: Trends in employee benefits: Perspectives from the C-suite and HR/benefit managers | January 2015 1
Healthcare reform is driving
benefit design changes
More than four years after the passage
of the Affordable Care Act (ACA), media
headlines continue to stream about the
potential impacts on employers of all
sizes. Yet according to the 2014 Employee
Benefits Trends Survey commissioned
by Wells Fargo Insurance, employers
themselves are split on how reform will
impact business.
• About half of employers have concern
regarding their ability to attract and retain
employees given the implementation
of the changes mandated by healthcare
reform.
• However, over one-third feel the reform
legislation will have a neutral impact on their business.
No matter where on the continuum an employer’s sentiments fall, the study
clearly shows that healthcare reform has prompted benefits managers —
and increasingly C-suite executives — to look at employee benefits issues
through a more critical lens. From spousal coverage to wellness programs,
employers are reviewing and updating a wide array of benefits to ensure
they remain poised to attract and retain the best talent, improve employee
productivity, and boost morale.
This white paper looks at a few key highlights of the survey. Please
watch for additional content to be produced from areas of the survey on
wfis.wellsfargo.com.
Impact to company due to healthcare reform legislation
C-suite Benefit
Managers
C-suite Benefit
Managers
17% 19%
37%
40%
47% 41%Overall
positive
Overall
neutral
Overall
negative
27% 26%
28% 26%
24% 31%
21% 16%
Very
concerned
Somewhat
concerned
Neutral
Not at all/
not very
concerned
Impact of Affordable
Care Act on employee
benefit program
Concern for employee
attraction and retention
due to changes caused by
the Affordable Care Act
C-suite Benefit Managers
Impactin
12-18months
Impactin
19months-
5years
Noimpact Notsure
Impactin
12-18months
Impactin
19months-
5years
Noimpact Notsure
Individual mandate 36% 22% 33% 12% 34% 24% 31% 13%
Change in definition of “full-time” employees 33% 20% 40% 9% 34% 28% 30% 10%
Defined contribution 33% 25% 31% 12% 30% 26% 29% 16%
Public exchanges 33% 22% 32% 14% 29% 29% 26% 17%
Private exchanges 32% 27% 31% 12% 25% 31% 28% 17%
Employer mandate (pay or play) 29% 25% 39% 10% 36% 25% 27% 14%
Excise Cadillac Tax 29% 20% 36% 17% 20% 29% 29% 22%
Expansion of Medicaid 27% 24% 37% 14% 26% 27% 34% 15%

3. 2 White paper: Trends in employee benefits: Perspectives from the C-suite and HR/benefit managers | January 2015
About the survey
In 2014, Wells Fargo Insurance commissioned the
Employee Benefits Trends Survey of executives and
benefit managers from across the United States at
companies with more than 50 employees. The survey
was designed to better understand how organizations
are responding to healthcare reform requirements while
providing a competitive benefits strategy for employees.
More than 950 respondents answered a series of
questions that covered topics such as cost containment
strategies, employee attraction and retention strategies,
overall outlook on healthcare reform, and the financial
impact of employee health.
Key findings
Employee productivity, retention, and morale are top
human capital objectives
Many employers believe that a strong employee benefits
offering will help reduce turnover and offer employees
an incentive for staying with their organization. The
study showed that while both C-suite executives and
benefit managers cite improving employee retention as
a main human capital objective, the C-suite considers
maintaining employee productivity to be the primary
objective.
• Morale: C-suite executives place more importance on
the role of benefits in improving morale than benefit
managers and 92 percent believe their efforts in this
area are effective. In contrast, 80 percent of benefit
managers believe in their effectiveness, most likely
due to their closer interface with employees.
• Decision-making: Most decision-making falls within
the company’s executive committee. However, nearly
six in 10 benefits managers feel that functional staff
is involved in management of strategies and benefits
compared with only four in 10 of C-suite executives.
33%
25%
15%
17%
26%
27%
13%
11%
Improve/maintain
employee
productivity
Improve/maintain
employee
retention
Improve/maintain
employee morale
Improve/maintain
employee
happiness
C-suite Benefit Managers
Main objectives of human capital strategy
“We want to keep employees engaged
with the goals of the organization, retain
good employees, attract high levels of
commitment and talent, maintain and
increase levels of employee morale and
interaction, and ensure all employees
feel respected and valued.”
– Survey respondent

4. Two-thirds of companies measure ROI,
are effective at it
Not only are companies measuring return on
investment (ROI) of their employee benefit offerings,
but 84 percent of C-suite executives and 85 percent
of benefits managers that measure ROI feel they are
effective in doing so.
• Impact: C-suite and benefits managers agree
that employee benefits have the most impact on
improved employee loyalty, engagement and lowering
medical costs for both the organization as well as for
employees. This is followed by reduced absenteeism,
reduced cost of temporary or fill-in workers, and
reduced presenteeism.
Four in five employers say it is important
to measure the impact of improving
employee health; however, their confidence
in effectiveness at measuring it is lower.
Employers can help ensure their programs
are properly designed to accomplish
desired objectives by embracing available
tools and guidance from benefit providers
to help measure ROI.
Productivity and managing costs are top goals
From a short-term perspective (the next 12-18 months),
C-suite executives and benefit managers agree that
maintaining employee productivity and managing costs
are among the top three goals for employee benefits
programs. However, benefit managers are consistently
more focused on maintaining the current level of
benefits than the C-suite, most likely since they field
employee questions and complaints. Further, with the
economy improving and the quantity of job-seekers
expected to increase, maintaining benefits will aid in
attracting the right talent and retaining high performers.
Long-term (next five years): Maintaining employee
productivity and managing costs remain among the top
three goals, mirroring the short-term goals. However,
among both C-suite executives and benefit managers,
managing overall costs jumps to the top spot. This
comes as no surprise with the ACA’s excise tax looming
in 2018.
C-suite Benefit Managers
88%
83%
81%
80%
77%
76%
71%
85%
82%
78%
80%
74%
75%
68%
Improved
employee loyalty
Improved employee
engagement
Lower medical costs
for your organization
Lower medical
costs for employees
Reduced absenteeism
Reduced cost of
temporary or fill-in
workers
Reduced
presenteeism
Impact of employee benefits program
on organization
Employee benefits program short-term
and long-term goals
Short-term (top three)
Maintaining productivity of
employees
Managing the overall cost of
offering healthcare benefits
Maintaining the current level
of employee benefits offered
to employees
Long-term (top three)
Managing the overall cost of
offering healthcare benefits
Maintaining productivity of
employees
Maintaining the current level
of employee benefits offered
to employees
White paper: Trends in employee benefits: Perspectives from the C-suite and HR/benefit managers | January 2015 3

5. 4 White paper: Trends in employee benefits: Perspectives from the C-suite and HR/benefit managers | January 2015
Most companies have already made strategic changes to
plan offerings in 2015
Seven in 10 companies have already made or are in the process of
making changes related to coverage for spouses and to increase the
percentage employees contribute to premiums. Six in 10 have changed
or are changing the options for type of plan and increased the co-
insurance feature. While offering a high-deductible plan ranked as
only the fifth most common change, it held the top spot for options
currently “under consideration.”
Not surprisingly, given their stated importance on maintaining
current program levels, less than six in 10 benefit managers felt
employees had reacted positively to benefit changes, compared with
nearly seven in 10 C-suite executives.
C-suite decision-makers may
be overestimating the positive
goodwill received from employees
about changes made to benefits.
Employers can help increase
positive employee acceptance
by partnering with their benefit
providers to help communicate
changes to employees and
position them as beneficial.
Reaction to changes communicated
C-suite Benefit
Managers
23%
14%
10%
7%
18%
18%
15%
11%
Generally positive feedback
Positive changes in plan
Negative changes in plan
Changes communicated well
7% 11%
24%
30%
48%
47%
21%
11%
C-suite Benefit Managers
Extremely
positively
Positively
Neutral
Negatively/
extremely negatively
Overall response Reason for overall response (top four)
C-suite Benefit Managers
48%
44%
43%
36%
52%
44%
42%
41%
Importance of
wellness offerings
Coverage of
family members
Employee
attraction due to
benefit offerings
Employee
retention due to
benefit offerings
Changes to employee benefits
program over next five years
Managing costs, wellness offerings, family coverage highlight next
five years
With many healthcare changes complete, employers face uncertainty
about their next strategic management initiatives. While most
employers have not yet made changes such as moving from fully-
insured to self-funded or using private exchanges, those two strategic
items took the top spots in the “under consideration” category.
Compared with benefits managers, C-suite executives are more
strongly anticipating the increase of changes that shift the cost burden.
Both C-suite executives and benefit managers cite the top four
changes expected in the next five years as:
1) Importance of wellness offerings
2) Coverage of family members
3) Employee attraction due to benefit offerings
4) Employee retention due to benefit offerings

6. The focus on wellness is strong: 93 percent
of C-suite executives anticipate an increase
or improvement in the importance of
wellness offerings. Furthermore, about half
of those companies that have considered,
will consider, or are considering a
change in wellness offerings, are doing
so as a result of the Affordable Care Act.
Employers who take a more coordinated
approach to integrating wellness programs
with their existing employee benefits and
productivity solutions will be the best-
positioned to realize the potential for
growth and cost savings.
How can we help?
Whether your company is a small startup or a large
corporation, navigating the shifting complexities of
employee benefits can be a huge undertaking. By
taking into consideration your corporate philosophy,
financial plan and, most importantly, your employees,
Wells Fargo Insurance can help you create a smart and
strategic program that provides the best value for your
business and the best benefits for your workforce.
For more information, contact your local Wells Fargo
Insurance sales executive.
“We keep our employees well-informed
in all aspects of where we are headed as
a company, and offer incentives for them
to continue to be part of our company.
Benefits are the number one issue when it
comes to employment with our company.”
– Survey respondent
White paper: Trends in employee benefits: Perspectives from the C-suite and HR/benefit managers | January 2015 5

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