Research: Employees value basic benefits

Employees rank basic benefits, such as medical insurance, paid vacation and holidays and retirement plans, as the most important, according to Aon Consulting's "United States @ Work" study.

The survey of 1,800 American workers found that having medical insurance was the most important benefit, outpacing paid vacation and holidays and employee-paid pension. In fact, since Aon Consulting's 1995 ranking of benefits importance, the company medical plan has finished first every time.

"This study underscores what we tell clients every day: You need to have the basic benefits in order to become an employer of choice," said Karen Daugherty, senior vice president with Aon Consulting's Kansas City office. "Other benefits, such as flex time and day care, are also important, but in order to have an engaged, committed work force, it's vital that companies make sure they have health care coverage and retirement plans that their employees can feel good about."

Respondents to the survey were asked to rank benefits on a five-point scale, with five being "critical" and one being "not important." The top 10 benefits selected by the respondents were: 1. medical insurance; 2. paid vacation and holidays; 3. employer-paid pension; 4. retirement savings plan; 5. prescription drug card; 6. dental insurance; 7. ability to choose benefits that best meet your needs; 8. sick leave and short-term disability; 9. long-term disability insurance; and 10. preventive/wellness coverage.

Aon researchers noted that paid vacations and holidays was No. 10 in the 1995 study but has risen to No. 2 this year.

Aon Consulting is a global human resources consulting firm with 2001 revenues of $938 million and 7,400 employees in 140 offices throughout the world.