1. OVERVIEW: EMPLOYER AND EMPLOYEE RESULTS
Findings from the 2014 Aflac WorkForces Report
4/14

2. About the 2014 Aflac WorkForces Report
• The 2014 Aflac WorkForces Report is the fourth annual Aflac employee
benefits study examining benefits trends and attitudes.
• Fielded in January 2014 by Research Now, a global online-sampling and
online data-collection company.
• Responses from 5,209 American employees, 1,856 business decision-
makers and 314 benefits brokers.
• Findings show the effect health care reform is having in the workplace and
the growing importance of voluntary benefits to workers.
• For details on the survey methodology, visit aflac.com/aboutAWR.
Aflac herein means American Family Life Assurance Company of Columbus.
Worldwide Headquarters| 1932 Wynnton Rd| Columbus, GA 31999

3. Key Employer Findings

4. Companies offering benefits beyond major medical
Trends in company-benefits offerings

5. Employers place a high priority on controlling costs
49% of employers say controlling costs is a top business objective;
businesses continued to shift benefits costs in 2013:

6. The Importance of Benefits in the
Workplace

7. Benefits matter to workers

8. Benefits influence employees’ job satisfaction, loyalty,
productivity and retention
57% of employees say they are likely to accept a job offer with slightly lower
compensation but better benefits.

9. Benefits impact employee retention
Don’t assume your employees are satisfied.

10. The Impact of Health Care Reform

11. Heath care reform is confusing to employees

12. • 7% of companies moved employees to private exchanges in 2013 and
7% say they plan to do so in 2014.
o Of those, 37% say moving workers to private exchanges is
financially advantageous for their companies, and 23% say it is
financially advantageous for their employees.
• 10% expect to offer employees stipends in 2014 to purchase health
care coverage on their own, instead of offering company-provided
benefits.
• 14% decreased employee hours from full-time to part-time in 2013, and
12% plan to do so in 2014.
o Of those, 24% are doing so to avoid penalties associated with
health care reform.
• 18% expect to eliminate or reduce benefits in 2014.
Change is under way

13. Communication is key to understanding the impact of health
care reform
Employees need more information, but employers’
communications are falling short.

14. Financial Matters

15. Workers have real financial concerns
Employees are struggling to handle medical costs.
• Only 31% are extremely or very confident in their financial future.
• 42% are not at all or not very prepared to pay out-of-pocket expenses
associated with a serious illness or injury.

16. Many workers are not prepared financially
• 24% of employees named “personal financial issues” as their top non-
work-related issue that distracts them during work.

17. The Growing Importance of Voluntary Benefits

18. • 86% at least somewhat agree the medical costs they are responsible for will
increase.
• 24% named “personal financial issues” as the top non-work-related issue that
distracts them during work.
• Just 35% of companies offer voluntary insurance to their employees.
• Voluntary insurance policies help employees cope with living expenses and
out-of-pocket costs associated with accidents or illnesses – costs major
medical insurance was never intended to cover.
Workers are concerned about health care costs and their
ability to pay

19. * Among those who have heard the phrase consumer-driven health care.
Voluntary insurance improves employee perceptions
Employees with voluntary benefits are more likely to say they…

20. Workers want benefits – and are willing to pay for them
• 88% of workers at least somewhat agree that voluntary insurance benefits
are part of a comprehensive benefits program.
• 52% of those without access to voluntary insurance benefits say they
would at least be somewhat likely to purchase voluntary insurance
benefits if their employer offered them.
• 63% see a growing need for voluntary insurance benefits.
• When asked why the need for voluntary insurance benefits is growing,
workers say:
• Rising medical costs: 76%
• Rising medical coverage costs: 66%
• Increasing deductibles and copays: 61%
• Because employer reduced benefits and/or coverage: 37%

21. Health Matters

22. Employees are in denial about their health
When asked, “How well does this statement describe you?”:
•Nearly 7 in 10 workers (69%) at least somewhat agree they don’t like
going to the doctor.
o More than a third (34%) strongly or very strongly agree they don’t
like going to the doctor.
•53% at least somewhat agree they have put off a medical procedure
longer than they should.
•23% say they have been to the emergency room in the past year.

23. Employees are overly optimistic about their health
Yet when asked, “How well does this statement describe you?”:
• 26% of workers at least somewhat agree they have suffered an injury in the
past year.
• 20% of workers consider themselves prone to accidents.

24. Thank you