Business Services Industry

Prudential Report Finds Tough Economic Conditions Driving Employers to Implement Targeted Voluntary Benefits Communication Programs

Business Wire, Sept 24, 2008

Employers zero in on targeted communication initiatives to educate an increasingly multigenerational work force on benefits programs' total value

NEWARK, N.J. -- In the face of economic volatility, and a growing multigenerational work force, employers are focused on implementing targeted communication programs to better inform their employees on the merits of their current offerings, according to the Study of Employee Benefits: 2008 & Beyond, a new report released today by Prudential Financial, Inc. (NYSE: PRU). The report explores current and future employee benefits trends and how employers respond to those trends. Notably, plan sponsors indicated a 22-point increase (34% in 2008 versus 56% in 2013) as it relates to the importance of increasing employee education and helping employees understand how to make the best choices, while tailoring communication and enrollment to meet the needs of various employee segments increased from 24% in 2008 to 39% in 2013.

"Clearly, it's just not enough to have a robust benefits offering in today's economic climate. How well you communicate the value of your program often matters more than the richness of your program," said Lori High, president of The Prudential Insurance Company of America's Group Insurance business. "And when it comes to navigating an increasingly diverse and multigenerational work force, 'targeted and personalized' are the new hallmarks of benefits communications."

The study results highlight the increasing influence of an aging and multigenerational work force on benefits programs. Today, only 21% of plan sponsors cite a multigenerational work force as highly important, and 27% cite an aging work force as highly important. However, the perceived importance of a multigenerational work force nearly doubles in five years among plan sponsors. According to High, "Employers should pay close attention to the preferential differences between multigenerational employees, and not make assumptions. Even we were intrigued to find that the Baby Boomer generation's preference for online benefits presentations is stronger than that of the tech-savvy Millennial generation."

Prudential's Study of Employee Benefits: 2008 and Beyond provides valuable insight that plan sponsors, brokers/consultants, third-party administrators, and other key stakeholders can use to support their business planning and strategy development. Additional trends shaping the employee benefits landscape include:

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"Our findings remind us to make no assumptions when it comes to employee benefits," said High. "Rather, we should keep a close watch on emerging trends to make sure we are offering the benefits employees need via the communication vehicles that prompt action, while helping employers link their benefits plans to their financial goals."

Prudential Financial's Study of Employee Benefits: 2008 and Beyond report was fielded via the Internet during May 2008 and consists of two distinct surveys: one among benefits plan sponsors and the other

among benefits plan participants. The surveys were conducted for Prudential by the Center for Strategy Research, Inc., a Boston-based, independent, market research firm. For a copy of the Study of Employee Benefits: 2008 and Beyond report, visit www.prudential.com/gi/.> Prudential's Group Insurance business manufactures and distributes a full range of group life, long-term and short-term group disability, long-term care, and corporate and trust-owned life insurance in the U.S. to institutional clients primarily for use in connection with employee and membership benefits plans. Group Insurance also sells accidental death and dismemberment and other ancillary coverages and provides plan administrative services in connection with its insurance coverages.

Prudential Financial, Inc. (NYSE: PRU), a financial services leader with approximately $638 billion of assets under management as of June 30, 2008, has operations in the United States, Asia, Europe, and Latin America. Leveraging its heritage of life insurance and asset management expertise, Prudential is focused on helping approximately 50 million individual and institutional customers grow and protect their wealth. The company's well-known Rock symbol is an icon of strength, stability, expertise and innovation that has stood the test of time. Prudential's businesses offer a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds, investment management, and real estate services. For more information, please visit http://www.news.prudential.com/.> Group Insurance issued by The Prudential Insurance Company of America, Newark, NJ.

Prudential and The Rock logo are registered service marks of The Prudential Insurance Company of America.

IFS-A155026 Ed. 9/08