Principal performs similar surveys twice a year, through Harris Interactive, a research firm. The February 2004 survey revealed that 44 percent of American workers are completely or somewhat insecure about their financial well being in today's economy. That feeling may have contributed to the increasing appreciation of their company's benefits. Health insurance was reported as being the most important benefit to employees, with 92 percent ranking it first. Ninety percent of the employees responding to the survey said their employers offer health insurance, down from 94 percent in 2002. However, satisfaction with employee benefits fell across the board. Just 35 percent of surveyed employees reported feeling satisfied with their health insurance, down 12 percent from 2002.

Seventy-four percent of the surveyed American workers ranked defined contribution plans as the second most important benefit. Employees saying their company offered a defined contribution plan fell by 4 percent compared to 2002. Defined benefit plan offerings also declined, down 8 percent from 2002. When asked what employee benefits they wished their company would offer, 22 percent of surveyed workers cited defined benefit plans. That figure is up 4 percent from 2003.

Meanwhile, workers showed some cynicism about their company's commitment to them. Just one in four agreed with the statement, "My company is concerned about my long-term financial future." More than half of the respondents disagreed somewhat or completely with that statement.

Employees Optimistic About Future

There was some good news. Although workers are concerned about their current finances, they were more optimistic about the future. Forty-eight percent of respondents said they were somewhat or very optimistic about 2004 as a whole. And they reported a greater appreciation of their employer-sponsored benefits than in past years. Seventy-one percent said that having a good employee benefits plan encourages them to work harder and perform better. In 2001, 59 percent reported the same feeling.

Daniel J. Houston, senior vice president at The Principal, sees this sentiment as an opportunity: "Employers know that best-in-class benefits have strong impact on recruiting and retaining high-performing employees, but what's especially provocative about these findings is the fact that high-quality benefits actually encourage employees to work harder and result in a more motivated workforce.

With the importance of benefits up, but employee satisfaction toward their benefits down, working Americans are asking for more from their employers to help them provide for their financial well-being.

Employers should look to benefits as a way to increasingly attract, keep, and motivate high-performing workers in this challenging environment."