Global Insights from MetLife’s Employee Benefit Trends Studies

Employee Benefits Generating Business Impact

Contents

About MetLife 2

Introduction 3

Tapping into Top Talent 4

Solutions that Work: Building a Total Rewards Package 6

Volunteering for Voluntary Benefits 6

Get Well: Employees Looking to Improve Health and Wellbeing 8

Toning Up Fiscal Fitness 10

Effective Communication Breaking Down Benefit Barriers 12

Benefits’ Biggest Reward: Engagement, Loyalty, Productivity 14

Conclusion 15

About the Study 16

ABOUT METLIFEMetLife, Inc. (NYSE: MET), through its subsidiaries and affiliates, is one of the largest life insurance companies in the world. Founded in 1868, MetLife is a global provider of life insurance, employee benefits, annuities and asset management. Serving approximately 100 million customers, MetLife has operations in nearly 50 countries and holds leading market positions in the United States, Japan, Latin America, Asia, Europe and the Middle East.

MetLife is a leading provider of innovative employee benefits. The company combines local capabilities with global scale to deliver world-class solutions to thousands of organizations. MetLife has employee benefits operations in more than 40 countries and is a leading provider in over half of those countries. It is also one of two founders of the MAXIS Global Benefits Network,1 one of the world’s leading international employee benefits networks, with a presence in more than 110 countries.

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IntroductionThe success of any business is largely dependent on its employees.

Employers who create a welcoming and engaging work environment will likely see

increased levels of commitment and productivity from employees, leading to more

satisfied customers and a pathway to long-term growth. But faced with mounting

regulatory and cost pressures as well as increasingly sophisticated competition, how

do companies — regardless of size — attract the best talent and then keep it for

the long haul?

In the global struggle to find and retain top talent, employers must move beyond base pay and bonuses toward a total rewards approach. Companies that incorporate a wider range of employee and work-life benefits, and build a strong and supportive workplace culture, will improve their employee value proposition and gain an advantage.

As a leading global provider of employee benefits, MetLife has been conducting its Employee Benefit Trends Studies (EBTS) for more than 13 years across 12 countries, helping employers understand how benefits can be used as a strategic lever to drive commitment and engagement from their employees. MetLife’s EBTS is one of the world’s most comprehensive workplace studies and looks at the compensation, benefits, health and wellness and communication programs that attract employees and keep them healthy, productive, loyal and primed to make a positive impact.

The U.S. EBTS, when initiated in 2001, was a first of its kind survey. Since then, it has been repeated annually, adapted and administered worldwide. The data used in this paper is aggregated from studies conducted in the following countries:

METLIFE’S EMPLOYEE BENEFIT TRENDS STUDIES – AROUND THE WORLD

ChinaEgyptIndiaUnited Kingdom

2015

2014 PolandRussiaUnited Arab Emirates

2013 AustraliaBrazilChileMexico

Regardless of different social schemes and economic factors in each country, total rewards packages are key recruitment and retention tools that help businesses succeed on a global scale — and help employees with an array of different personal, financial and health needs. Voluntary and wellness benefits, as well as retirement and financial planning options, need to take center stage. And beyond just offering these benefits, employers must help employees understand how to make the most of what’s available in order to further enhance their engagement, loyalty and productivity and thus better compete in globalized markets.

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Tapping into Top Talent By and large, employers around the world are concerned about finding and retaining skilled talent. Be it because of tight labor markets or current employees wanting to leave and work for a different company, employers recognize that they are competing for a thin pool of qualified candidates.

Across many countries where the EBTS was conducted, recruiting was seen as a challenge for more than half of employers, including India (69 percent), China (66 percent), Poland (54 percent) and the United Arab Emirates (53 percent).

And at least one-third of employers in six of the countries surveyed — across developed and developing markets and spanning several continents — feared being impacted by a talent shortage. In some countries, part of this fear stemmed from unemployment rates being near all-time lows, like in Russia2 and Poland.3

EMPLOYERS BELIEVE TALENT SHORTAGES ARE A CONCERN

RUSSIA CHINA POLAND UNITED KINGDOM

UNITED ARAB EMIRATES

INDIA

56% 47% 40% 40% 40% 34%

For employers in countries that didn’t feel the talent crunch as acutely, a different staffing problem existed: employees wanting to work for a different company. For example, only 8 percent of Egyptian employers felt they’d be impacted by a talent shortage, but 37 percent of employees strongly agreed that they would like to be working elsewhere within a year. And employees in Egypt were not alone, as one-quarter to nearly half of employees in each of the following countries felt similarly: India (47 percent), the United Arab Emirates (39 percent), Poland (33 percent), China (26 percent) and Russia (25 percent).

Whether related to recruitment or retention, talent issues are top of mind for employers across the globe. Historically, companies have long focused on salaries and the lure of bonuses to attract and retain employees. But a different tool at their disposal holds a significant amount of weight when added to total rewards packages: benefits.

Sixty percent or more of employers in all but one country where EBTS was conducted said that benefits were important when attracting employees. And at least 75 percent of employers across all geographies agreed that benefit offerings were important when retaining employees.

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UNITED KINGDOM

POLAND

EGYPT

UNITED ARAB EMIRATES

RUSSIA

INDIA

CHINA

AUSTRALIA

MEXICO

UNITED STATES

BRAZIL

CHILE

98% / 97%

91% / 96%

61% / 80%

65% / 75% 39% / 80%

85% / 91%

87% / 92%

97% / 97%85% / 88%

62% / 84%

90% / 89%

91% / 96%

n Attracting

n Retaining

EMPLOYERS BELIEVE THAT BENEFITS ARE KEY TO ATTRACTION AND RETENTION

Employees across the globe felt similarly, as nearly one-third said that an improved benefits package could persuade them to stay with their existing employer, including more than half in China (58 percent), the United Kingdom (57 percent), the United Arab Emirates (53 percent) and India (51 percent). In fact, 47 percent of Egyptian employees looking to change jobs in the next year cited “improving my benefits package” as a reason to stay — the second most important motivator behind salary increases.

Benefits are an even bigger recruitment and retention tool for multinational companies (MNCs) operating in developing markets — and in many cases an expectation of their employees:

• India – A larger percentage of MNCs think highly of benefits such as health, life and accidental insurance and financial planning compared to non-MNCs, with 88 percent of all Indian employers surveyed saying they provided benefit offerings to attract employees away from competitors.

• Russia – Seventy-seven percent of MNC employees said they valued their benefits, versus 58 percent of non-MNC employees.

• Egypt – The promise of better benefits was actually as important as a higher salary for employees working for MNCs.

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“For years, multinational companies have used total rewards packages to attract and retain employees. However, as the war for talent grows around the world and as governments continue to pass more of the healthcare and retirement burden to individuals, local companies are also recognizing the need for robust benefits packages to attract and retain talent, and expand employee loyalty and engagement,” says Maria Morris, Executive Vice President, MetLife Global Employee Benefits.

“ As demand for employee benefits grows, we’ll see more and more local companies implementing total rewards packages to win the talent war over the coming years.”

Clearly, there’s an understanding that benefits are important for attraction and retention. However, knowing the importance of benefits is only the beginning. Knowing the right benefits to offer as part of a total rewards package is equally important.

Solutions that Work: Building a Total Rewards PackageGiven the importance of benefits in attracting and retaining employees, employers globally need to listen to their employees and consider what will best address their needs. Increasingly, voluntary and wellness benefits, as well as retirement and financial planning options, are becoming more sought after and “must-have” parts of total rewards packages. But only a well-designed total rewards package that has been properly communicated to employees has real impact.

Volunteering For Voluntary Benefits One solution that’s been relied on more and more to bolster total rewards packages is voluntary benefits plans, employer-endorsed plans offered through the workplace in which an employee can choose to participate and contribute to the costs in full or part. In the U.S., companies have increased their use of voluntary benefits over the past 10 years due to factors like shifting health care expenses, evolving consumer demands and access to technology. In fact, new annual sales for voluntary benefits in the U.S. have grown over 60 percent since 2004 to nearly $7 billion for 2014, according to Eastbridge Consulting Group.4

“Voluntary benefits are growing rapidly in the U.S., but they’re also rising in demand around the world,” says Morris. “Employees want choice in their benefits and the ability to customize their benefit selections to address specific life events, such as marriage, a first child, the potential loss of income or retirement. Employers that provide a greater array and more personalized benefits options to reach different segments of the workforce will not only increase satisfaction among employees, but in turn, may even boost engagement and loyalty.”

MetLife’s 2016 U.S. EBTS results found that more than half (55 percent) of employees were interested in having their employer provide a wider array of non-medical benefits that they could purchase and pay for on their own, and 57 percent of employers agreed. Similar to the U.S. results, nearly 50 percent of all employees where the EBTS was conducted globally — except in Australia and the United Kingdom — said they were seeking a wider array of voluntary benefits to choose from and pay for on their own. And in almost all cases, at least 60 percent of employers agreed that it was important to provide a broader set of voluntary benefit offerings:

85%

n Employees n Employers

RUSSIA

62%

80%

POLAND

53%

73%

EGYPT

55%

74%

CHILE

49%61%

CHINA

59%

82%

INDIA

51%

MEXICO

54% 63%

UNITED ARAB EMIRATES

49%

74%

BRAZIL

48% 45%

HIGH INTEREST IN VOLUNTARY BENEFITS AROUND THE WORLD

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“Employers are recognizing that everyone wins when they offer voluntary benefits: employees get the choice and access to additional coverage they’re looking for and employers add value without adding to their benefits budgets,” says Wil Trohanis, Assistant Vice President of MetLife’s Global Employee Benefits. “As voluntary benefits continue to rise in demand across the globe, we are pursuing paths to integrate our offerings with the infrastructure and technology solutions our clients prefer. The end goal is to make the process of offering and administering additional benefits easier and more seamless for both employers and employees.”

Given the range of voluntary benefit offerings, it’s important that employers listen to their employees, understand their needs and offer specific benefits to meet those needs. From there, employers — often with the help of brokers — can top up and refine total rewards packages with voluntary offerings that help fill financial gaps and make a positive impact on their employees’ lives, all while maximizing employee commitment and productivity at minimal cost.

The rise of voluntary benefits has been pronounced in India. According to the country’s EBTS results, 83 percent of employers who offered voluntary benefits said they did so because it was cost-

effective, and 64 percent of employees said they were appealing because they were convenient and timesaving. “Particularly for voluntary benefits

like life insurance, we’ve seen a lot of interest coming from employers for more coverage, which has been driven by employee demand,” says Hemant Khera, Deputy

Director, Employee Benefits, Business Development and Sales Training at PNB MetLife India Insurance Company Limited. “In response to this demand, MetLife created an online portal specifically for voluntary life insurance products, which launched in the spring of 2016 and has enjoyed initial success. Employees want a convenient, simple and seamless way to buy insurance, and that’s exactly what the portal helps with.”

COUNTRY SPOTLIGHT: INDIA

According to the country’s latest EBTS results, 92 percent of Mexican companies said they would be either “interested” or “definitely interested” in working with an outside provider to offer their workers a suite of voluntary

benefits. “Companies are really taking a total rewards approach, especially when it comes to voluntary health

programs because that’s where employees see and get the most value,” says Alfredo Villas, MetLife’s Regional Head of Employee

Benefits in Latin America. “Ultimately, our goal is to simplify the voluntary benefits process for employers and make offerings available that employees want. For instance, in response to a rising need for pet insurance, we launched a pet assistance program two years ago that’s become very popular.”

COUNTRY SPOTLIGHT: MEXICO

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Get Well: Employees Looking to Improve Health and WellbeingWhile employers are increasingly turning to voluntary benefits to help complete total rewards packages, physical health and wellbeing offerings also need to be considered. Non-communicable diseases, for example, such as obesity, hypertension and diabetes are having a devastating impact on the health and productivity of the working population around the globe. The World Economic Forum projects the global economic burden of non-communicable diseases to climb to more than $40 trillion by 2029.5

Given this trend as well as others, more employers should make wellness a top priority in their total rewards packages to improve the health, wellbeing and productivity of their workforce. According to China’s 2015 EBTS results, 89 percent of employers said that it was important to provide plans to encourage healthy behavior and 79 percent of employees said they would like their employer to offer more health programs. Why should employers care? Only 44 percent of those employees in China who rated their health as “good, fair or poor” said they felt physically and mentally able to do their job. Among those who reported “very good or excellent” health, that rose to 68 percent.

“ More than any other global theme, our research found that health and wellness resonated most widely with companies around the world. Employers are beginning to see the direct relationship between wellness programs and productivity, and they’re increasingly taking on the role of educating their employees about the importance of wellness,” says Morris.

“Employers are also realizing that these programs are not only vital to the health of their employees, but they can also help boost workplace productivity by increasing engagement, decreasing sick leave and improving overall employee health.”

As there are many different types of wellness programs, employers need to understand which ones are most helpful for their employees. In Poland’s EBTS, 8 in 10 employers said it was important that insurers offered wellness programs, and stress management tools were of particular interest. Among Polish employees whose work was affected by financial stress, 80 percent were very interested in stress management programs.

Although some employers recognize the value of wellness offerings, they’re not necessarily providing the types of programs employees are most interested in. This was particularly apparent in India:

HEALTH INFORMATION STRESS MANAGEMENT NUTRITION & WEIGHT LOSS COUNSELING

38% 31% 31%

81% 80% 76%

n Currently Available n Interested

93% of employers in India with a wellness program said it had a positive impact on the health of participating employees; however, more than twice as many employees were keen on wellness offerings than received them, especially in the following areas:

WELLNESS BENEFITS WORK, BUT ONLY WHEN THEY’RE AVAILABLE

Beyond wellness programs that are specifically meant for improving physical health, employees are also interested in benefits that have a positive impact on their working lifestyles. On average, at least half of employees in India (80 percent), Russia (71 percent), the United Arab Emirates (69 percent), Poland (52 percent) and the United Kingdom (50 percent) would be interested in work-life balance programs if offered by their employer. And more than 70 percent of employees in each of those countries said they’d be interested in flexible working conditions.

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Providing these lifestyle benefits, as well as physical health and wellbeing offerings, can greatly improve the way employees think about their employers. Only half of employees or less in the following countries felt that their employer cared about their personal wellbeing: Egypt (50 percent), India (49 percent), United Arab Emirates (42 percent), China (36 percent), United Kingdom (35 percent), Russia (34 percent) and Poland (27 percent).

Ultimately, employers that encourage staff to lead healthier lifestyles — and offer the right set of benefits as part of their total rewards package — will help improve those employees’ lives and the health of their businesses due to a satisfied and more productive workforce.

The topic of wellness is becoming increasingly important in Australia. “There’s been a big shift in the last 3-4 years around wellness, especially with employers taking an active interest and focus on the holistic health of their employees,” says Andrew Hosie, Health & Wellbeing

Stream Lead at MetLife in Australia. MetLife has pioneered an offering in the wellness area that has already made a difference. MetLife was the

first life insurer to pilot “The Reactivate” program, a holistic rehabilitation program designed for employees to accelerate their path to recovery and

better overall wellness. “Wellness is a hot topic right now. When I speak with corporate customers, it’s all about holistic wellness: the mind, body and spirit,” says Elizabeth Rodley, Senior Rehabilitation & Early Intervention Consultant at MetLife in Australia. “At MetLife, we’ve been focusing on complementing our disability products with health and wellness tools to help employers manage the upward trend in claims in those areas,” adds Daniel Ebzery, Head of Corporate Development at MetLife in Australia.

COUNTRY SPOTLIGHT: AUSTRALIA

Wellness is a major focus in the United Arab Emirates. According to the most recent EBTS results, 63 percent of MNCs had a global wellness strategy, 75

percent of which said they had implemented it locally. MetLife’s comprehensive approach to wellness includes a focus on four key pillars: a) education and

awareness, b) prevention and screening, c) health support programs and d) behavior change. “While many companies have implemented health and wellness programs, the programs themselves are not always reflective of the underlying health issues that prevent employees from being healthy and productive at work,” says George Dimitriou, Head of Employee Benefits at MetLife in the Middle East and Africa. “At MetLife, we are actively working to get underneath the medical claims data to help our clients understand the real health issues impacting their employee populations and develop customized programs to meet those needs. To do this, we’ve partnered with a leading external provider to develop a web-based wellbeing engagement platform where employees can enter and track their basic biometrics, daily activity and other key indicators to gauge their current health status and see where they may need to make changes in their lifestyle. The platform is interactive with health coaches providing customized advice, and there is a gamification element where employees can win prizes based on their use of the platform. The feedback we’ve received has been outstanding and engagement scores are extremely high — 80 percent engagement for activated members.”

COUNTRY SPOTLIGHT: UNITED ARAB EMIRATES

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Toning Up Fiscal FitnessDue to a growing middle class, rising financial concerns and greater global awareness of saving for retirement, employees are turning to workplace benefits and financial education programs as solutions for various financial needs.

According to the 2016 U.S. EBTS results, nearly two-thirds (62 percent) of employees said they’re looking to their employer for more help in achieving financial security through employee benefits, compared to 49 percent in 2011. And employees are so committed to receiving financial guidance that more and more are willing to pay for it. According to Egypt’s latest EBTS results, about two-thirds said they would be willing to share the expense of financial planning assistance.

METLIFE SOLUTIONS: FINANCIAL EDUCATION

Given the need for financial education, MetLife created a series of programs to help employees identify opportunities to improve their financial wellbeing and make more informed decisions about

savings and spending. The series provides employees with access to a range of financial and retirement education resources through on-site workshops, with optional personal consultations and event-driven assistance. “Our education-based approach focuses on employee groups that are looking for guidance around specific life events, such as marriage or retirement, as well as basics like budgeting or creating a financial plan,” says Trohanis. “In many countries

where the EBTS was conducted, employees said that they spent more time thinking about personal financial issues at work than they should, including 54 percent of employees in India, where workplace financial education programs have been successful. At no cost to employers or employees, MetLife’s program helps alleviate employees’ financial fears, leading to higher productivity because they can focus on their jobs.”

One of the main reasons that employees are seeking more help is because they’re concerned about their financial futures. According to a global retirement study released by Accenture in 2015, 82 percent of consumers were worried about their post-retirement finances and 57 percent believed their standard of living would drop when they stopped working.6 MetLife’s EBTS results confirmed this notion across a number of different countries.

RETIREMENT CONCERNS HIGH

77% 74% 65% 61% 56% 55%

UNITED ARAB EMIRATES INDIA CHINAPOLAND UNITED

KINGDOMRUSSIA

A majority of employees in the following countries were concerned about a comfortable retirement:

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Though many companies acknowledged that they should help their employees achieve financial security in retirement, many employees hadn’t started planning for retirement at all and others lacked confidence in making financial decisions.

According to the latest EBTS results in Mexico, 76 percent of employers that provided benefits to their workforce said that offering “retirement planning services” was a priority, though 80 percent of employees had not done any retirement planning. And in China, a full 62 percent of employers said that their company had a responsibility to help employees ensure they had enough money in retirement, but only 36 percent of employees said they were very confident about their ability to make financial decisions about retirement and insurance.

Employers have an opportunity to fill the retirement and financial security gaps that their employees are facing by providing different financial resources like on-site workshops and educational materials, which further broaden a company’s total rewards package. Why should employers bother? According to the China EBTS results, nearly half (46 percent) of employees reported spending more time worrying about financial matters at work than they felt they should. As a result, employees will be able to focus on their day-to-day tasks at hand, and will likely be more appreciative and loyal to their current company for showing the willingness to help.

According to the country’s EBTS results, for every one-unit increase in employees “having a sense of financial control,” there was a 10 percent

increase in employee engagement. “Due to low interest rates and recent speculation about being taxed when drawing down on pensions, employee financial concerns may be greater today compared to when EBTS was conducted in 2015,” says Tom Gaynor, Employee Benefits

Director at MetLife in the United Kingdom. “Employers have a vast opportunity to educate employees on the practical and financial value of their benefits, as many employees don’t realize that their benefits can play a large role in addressing their financial concerns.”

COUNTRY SPOTLIGHT: UNITED KINGDOM

Depending on the life stages that employees are in, certain financial topics will be more relevant than others. PNB MetLife India created a first of its kind financial education program that targets people of

specific age groups and income segments so that employees get relevant, tailored and actionable information. The number of financial planning

activities and programs that PNB MetLife India administered grew 248 percent from the first quarter of 2015 to the first quarter of 2016, and the number of participating

companies grew 247 percent over the same time period. “As financial concerns and issues change, it’s important that employees have targeted resources to meet their specific needs,” says Khera. “We created a Credit Health Improvement Plan for 24-30 year olds that teaches them about how to manage credit. For 30-37 year olds, the programs focus on how to best manage money for important life events such as marriage, buying a house and having a baby, and for the older population, MetLife helps with estate planning.”

COUNTRY SPOTLIGHT: INDIA

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Effective Communication Breaking Down Benefit BarriersWhen it comes to constructing a complete total rewards package, choosing the types of benefit offerings is only the first step. Whether it’s voluntary, wellness or financial benefits, employers must articulately and effectively communicate what’s available to their workforce, what each benefit entails, and how it meets their employees’ needs. This information then needs to be presented through an appropriate channel — like a brochure, website or in-person meeting — that’s easy and convenient for employees to access and interact with. Essentially, if employees don’t know that benefits exist or how they work, they will never take advantage of them.

Companies around the world are struggling to effectively communicate their benefit offerings to employees:

LACK OF BENEFITS COMMUNICATION GLOBALLY

50% of employees felt workplace communications were effective in educating them about benefits options

Less than 50% felt workplace communications were effective in educating them about benefits options

UNITED ARAB EMIRATES

UNITED KINGDOM

POLAND

INDIA

AUSTRALIA

RUSSIA

CHINA

EGYPT

CHILE

MEXICO

UNITED STATES

BRAZIL

Further communication discrepancies can be seen in the EBTS results from the following countries:

• Brazil – Less than half of employers (43 percent) believed their benefit communications efforts effectively educated employees.

• Russia – Forty-eight percent of employees agreed that benefit communications they received effectively educated them about their benefits — dropping to 41 percent among non-MNC employees.

• United Arab Emirates – A paltry 38 percent of employees felt that the benefit communications they received effectively educated them on their benefits.

• United States – Only 37 percent of employees strongly agreed that their employers’ benefit communications effectively educated them.

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METLIFE SOLUTIONS: MOBILE APPS

The way people communicate has changed dramatically with the advancements of smart devices. At MetLife, introducing technology that makes it easier for employees to understand and take advantage of their benefits is a top priority. “We live in a digital time. What we’ve done in the United Arab Emirates and Egypt is invest in an e-services platform to help members figure out their benefit options and submit reimbursement claims,” says Dimitriou. “In both countries, we recently launched a mobile app where members can locate medical providers, have access to their benefits and submit claims in a very easy

way by taking a photo of the medical reports and invoices. In just three months, almost 14,000 people have used the application and everyone has been very satisfied with how user-friendly and easy it is to use.”

Despite the communication dysfunction, employers in many countries are determined to improve. According to the latest EBTS results, at least 7 in 10 companies in China, Egypt, India, Poland, Russia, the United Arab Emirates and the United Kingdom cited improvement in effectiveness of benefit communications as a top priority. And there’s good reason to consider doing so. In India, for each notch higher in the agreement that their benefits communication was “effective,” employees showed a 15 percent increase in commitment to their employer.

“If there’s one consistent theme I’ve seen over the last 20-plus years working in employee benefits in the U.S., it’s that even the best products won’t be purchased if they aren’t explained and properly communicated during the enrollment period,” says Todd Katz, Executive Vice President, Group, Voluntary & Worksite Benefits at MetLife. “There’s significant confusion and misunderstanding about benefits, and it’s important that employers provide a variety of decision support resources and communications tools to help employees learn about their benefit options and make informed choices to meet their needs.”

“Across the globe, we’ve found that an omni-channel communications strategy is the most effective way to reach employees. This entails connecting with employees as consumers through a myriad of ways: face to face, mobile, phone, web, print and even through partners,” says Morris. “The key is to provide employees with options, allowing them to choose which channel works best for them and digest the information the way they want to and take action.”

Deciding what benefit offerings to include as part of a total rewards package is a challenge in and of itself. But once the selection is made, effective communication helps employees make smart choices and understand the value of what’s being offered to them. Whether it’s through a website, handbook, an online support tool or group meetings, employers need to figure out what resonates best and then deliver.

The move to digitalization and how people communicate can be felt across a number of industries.

For customer-centric organizations, customers will manage 85 percent of their relationships with an enterprise without interacting with a human by the year 2020.7 This shift has also been felt in the workplace. “Advances in digital technology are changing the way companies choose their benefit offerings, as well as how they effectively communicate them with employees,” says Alexander Lazarev, Head of Employee Benefits at MetLife in Eastern and Southern Europe. “Our customers in Russia — many of which are MNCs — rely on us to help them make informed benefit decisions, so we leverage data and analytics to understand what employees want and use most. In addition, MetLife has implemented many different digital platforms around the world to help communicate benefit options, and we’re constantly working to improve our current e-services platform based on the needs of employers and employees.”

COUNTRY SPOTLIGHT: RUSSIA

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According to the latest Mexico EBTS results, only 50 percent of employees felt communications were effective in educating them on benefits package options. “It’s important to provide employees with a variety of different

communication options and understand what works best for them, such as face-to-face conversations, mobile apps or

online e-learning tools,” says Villas. “The way information is communicated also needs to be culturally relevant. In Mexico, we

don’t have a preventative culture — we live today and worry tomorrow — which plays a huge role in benefits communication. We have to help people see the importance of benefits before they need them, so creating emotional and engaging testimonials that provide a call to action and speak to the impact of benefits is critical.”

COUNTRY SPOTLIGHT: MEXICO

Benefits’ Biggest Reward: Engagement, Loyalty, Productivity A total rewards approach is a good way for employers to bolster their employee value proposition, as it demonstrates a level of care and responsibility for employees’ mental, physical and financial wellbeing. But beyond that, employers gain from much more.

“Today, employees want their employers to create an environment that’s attractive beyond just money,” says Morris. “Given that fact, it’s essential for employers to offer and deliver on a total rewards package that is well thought out and truly incorporates the needs of their workforce. Articulation and implementation of these total rewards packages can help with recruitment of talent, as well as drive up engagement, loyalty and productivity.”

The perceived value of benefits plays a major factor when it comes to employee engagement and commitment, according to different regression analyses conducted in the EBTS across the following countries:

• China – For each point increase in agreement with the statement, “I place a high value on the benefits from my employer,” Chinese employees showed an average increase of 13 percent in terms of engagement with that employer.

• United Arab Emirates – If an employer was able to increase an employee’s perceived value of benefits by 1 point on the 5-point agreement scale, that yielded an increase of 12 percent in that employee’s sense of commitment to the employer.

• Russia – If an employer increased an employee’s perceived value of benefits by 1 point on the 5-point agreement scale, it increased the employee’s sense of engagement to the employer by 11 percent.

• Egypt – If an employer increased the value an employee attributes to their benefits by 1 point on the 7-point scale (for example, from “somewhat satisfied” to “satisfied”), on average, the employee’s commitment was 8 percent higher.

“ The key to a successful total rewards package is to remember that one size does not fit all — employers must understand what matters to their employees and create a total rewards approach to meet those specific needs,” says Morris.

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And whether it’s a focus on voluntary, wellness or financial benefits, employers who are attuned to the needs of their employees and tailor their offerings accordingly will find their employees being more productive and loyal:

• In Russia, 57 percent of employees strongly agreed with the idea that a customized benefits package would increase their loyalty to their employer.

• In India, employees that participated in wellness programs compared to those that didn’t were more satisfied with their job (64 percent vs. 44 percent), felt their company was a great place to work (65 percent vs. 46 percent) and felt loyal to their employer (67 percent vs. 37 percent).

• And in Poland, employers that offered a retirement plan compared to those that didn’t believed their benefits were better appreciated (57 percent vs. 33 percent) and their employees were more loyal (56 percent vs. 32 percent). Twice as many employees in Poland who had retirement plans said that benefits were an important reason they stayed with their employer (46 percent vs. 23 percent).

BENEFITS AND LOYALTY IN THE UNITED KINGDOM

MY COMPANY IS A GREAT PLACE TO WORK

MY EMPLOYER IS LOYAL TO ME

TO HELP THIS COMPANY SUCCEED, I WILL WORK HARDER THAN I HAVE TO

n Employees in the UK that highly value benefits n Employees in the UK that do not highly value benefits

43% 58% 34%20% 20% 8%

Relatively few (1 in 10) employees in the UK said they would be looking to get a new job elsewhere in the next 12 months, but only 22% thought their company was particularly loyal to them. Benefits make a big difference, as those employees who highly valued benefits showed more loyalty and commitment to the company compared to those who didn’t:

Regarding commitment, more important than focusing on specific tasks at hand, employees are often staying with their employer longer when offered benefits. According to the EBTS results in Mexico, workers with benefits stayed an average of 6.2 years compared to 5.3 years for those without. And workers with benefits also had higher job satisfaction (79 percent vs. 62 percent).

Employers can make a big difference in their employees’ lives by helping them understand the practical and financial value of their benefits. And because of the level of support they’re showing, according to the EBTS research, employees will show stronger levels of productivity, satisfaction and loyalty to their employer.

ConclusionGlobally, there’s been a mindset shift in how employees think about benefits, which means that employers need to closely consider how benefits fit into their company’s overall value proposition. At a time where finding and attracting skilled talent is increasingly difficult, offering higher salaries and bonuses may not be the answer. Those who take a total rewards approach — by providing a wide range of voluntary benefit options and financial planning and wellness programs — will create an environment that demonstrates care and makes a positive impact. Employees will be better off financially and physically and have a stronger relationship with their employers, resulting in greater retention, loyalty and increased productivity. In turn, having a committed and productive workforce will also help businesses reach their goals and achieve long-term success.

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About the StudyMetLife’s Employee Benefit Trends Study delivers timely and reliable research results that explore important benefits issues and evolving trends around the world. Building on more than a decade of research and experience in the United States, as well as 11 additional markets since 2013, the Study provides fresh insights that can help employers get more from their benefits investments in the form of satisfied, skilled and productive workers. The Study also suggests tactics to help employees become more knowledgeable benefits consumers, leveraging insights from multiple markets in order to respond to the evolving benefits environment. The Study design, involving both employer and employee surveys, was developed in the United States and has been adapted in key markets around the globe including: 2007 (Australia, Mexico, United Kingdom and India); 2011 (Australia, Brazil, India, Mexico, United Kingdom); 2013 (Australia, Brazil, Chile, Mexico); 2014 (United Arab Emirates, Poland, Russia); and 2015 (United Kingdom, India, Egypt, China).

For country-specific EBTS reports and methodologies, please visit the MetLife Global Benefit Trends website (benefittrends.metlife.com) or individual country websites:

• MetLife Australia: www.metlife.com.au

• MetLife Brazil: www.metlife.com.br

• MetLife Chile: www.metlife.cl

• MetLife China: www.metlife.com.cn

• MetLife Egypt: www.metlife.eg

• MetLife India: www.pnbmetlife.com

• MetLife Mexico: www.metlife.com.m

• MetLife Poland: www.metlife.pl

• MetLife Russia: www.metlife.ru

• MetLife United Arab Emirates: www.metlife.ae

• MetLife United Kingdom: www.metlife.co.uk

• MetLife United States: www.metlife.com

1 The MAXIS Global Benefits Network (“Network”) is a network of locally licensed MAXIS member insurance companies (“Members”) founded by AXA France Vie, Paris, France (AXA) and Metropolitan Life Insurance Company, New York, NY (MLIC). MAXIS GBN (“MAXIS”) S.A.S., with registered office at 313, Terrasses de l’Arche – 92 727 Nanterre Cedex, France, is an insurance and reinsurance intermediary (registered with ORIAS under number 16000513 – www.orias.fr) that promotes the Network. MAXIS is jointly owned by affiliates of AXA and MLIC and does not issue policies or provide insurance; such activities are carried out by the Members. MAXIS operates in the UK through its UK establishment MAXIS GBN with registered address at Hackwood Secretaries Limited, One Silk Street, London EC2Y 8HQ and Establishment number BR018216 and in other European countries on a services basis. MLIC is the only Member licensed to transact insurance business in NY. The other Members are not licensed or authorized to do business in NY and the policies and contracts they issue have not been approved by the NY Superintendent of Financial Services, are not protected by the NY state guaranty fund, and are not subject to all of the laws of NY

2 Statista, “Russia: Unemployment rate from 2010 to 2020,” http://www.statista.com/statistics/263712/unemployment-in-russia/3 Trading Economics, Poland Unemployment Rate 1990-2016, http://www.tradingeconomics.com/poland/unemployment-rate4 Eastbridge Consulting Group, U.S. Voluntary/Worksite Sales Report, 2014, available at http://www.eastbridge.com/news/PressRelease/2015/04-07.html. 5 World Economic Forum. “The Global Burden of Non-Communicable Diseases”, 20116 Accenture, “Global Retirement Services Survey,” https://www.accenture.com/t20150523T020625__w__/se-en/_acnmedia/Accenture/Conversion-Assets/Dot-Com/Documents/Global/PDF/About-Accenture/Accenture-Retirement-Services-Survey.pdf

7 Gartner Customer 360 Summit 2011, “CRM Strategies and Technologies to Understand, Grow and Manage Customer Experiences,” http://www.gartner.com/imagesrv/summits/docs/na/customer-360/C360_2011_brochure_FINAL.pdf

Unless otherwise noted, the sources for the findings, statistics and graphics included in this document are the Employee Benefit Trends Study developed by MetLife in the following markets: 2013 (Brazil, Chile, Mexico); 2014 (Poland, Russia, United Arab Emirates & United States ); 2015 (United Kingdom, China & India); 2016 (Egypt).

Metropolitan Life Insurance Company200 Park AvenueNew York, NY 10166www.metlife.com© 2016 METLIFE, INC. L0616468786(exp0817)