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INDUSTRY SNAPSHOTS

Public Sector

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People are the Public Sector’s key resource. Not only in the good times, but

also in budget reduction times, the Public Sector looks at changing operating

models and ways of working to drive up productivity levels and reduce staff

costs. That commitment to people has to be backed up by actions and words.

Consequently, there is real opportunity for HR to be at the heart, and not just

supporting, the transformation in public services. Benefits are one way the

Public Sector can demonstrate their commitment to people.

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Industry Challenges

Among the people challenges affecting the industry are:2

Of public sector employers say managing the productivity of their workforce is their company’s most important business objective.

Say employee turnover results in the most productivity lost within their organization.

Say taking care of their employees by offering the widest range of benefits options is the most important objective of their benefits program.

41%41%

34%

28%

Public sector organizations are faced with unprecedented challenges. Budgetary pressures and a growing demand for financial accountability, combined with changing public expectations of Public Sector services, require new approaches and solutions. Local, state, regional and national bodies are therefore seeking to adopt new processes, techniques and technologies to increase process efficiency, reduce costs, improve transparency and encourage greater accountability.1

Change is paramount in the Public Sector. Whether it’s a presidential election or local election, change in administration can mean change in how things run as well as who may be running the organization.

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1. Membership acquisition and retention

Reaching new members and keeping current ones engaged requires a

strong value proposition, effective communication and useful benefits

for members.

2. Non-Dues revenue

The cost of membership is a challenge for most organizations.

Unsurprisingly, 25 percent of membership associations say that

increasing non-dues revenue is one of their top goals.3

3. Member quality of life

Many association members are financially strapped – 40 percent

of working Americans say they don’t have $2,000 for a financial

emergency,4 making it difficult for them to meet their short-term goals

and prepare for their long-term needs.

Industry Challenges (cont.)

Many Public Sector employees have access to Associations which have a unique opportunity to fill gaps in employer benefits packages. Core concerns of Public Sector Associations include:

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1. High turnover

Employee turnover results in the most productivity lost within the Public

Sector industry.

2. Importance of benefits

28 percent of public sector employers say taking care of their employees

by offering the widest range of benefits options is the most important

objective of their benefits programs. 5

3. Employees’ lack of financial well-being

These statistics give a picture of the status of employees’ financial well-

being:6

HR ChallengesWorking as a teacher or as a local government public official may be a lower-wage occupation, and as such, employees heavily rely on the benefits included with working as a public servant.

The Public Sector industry faces HR challenges specific to the industry as well as to HR in general:

Of employees would not be able to pay less than $1,000 for out-of-pocket expenses if an unexpected serious illness or accident occurred today.49%

Say a benefits package offering is extremely or very important to their job satisfaction. 68%

Say it’s extremely or very important to their employer loyalty.57%

Say improving their benefits package is one thing their employer could do to keep them in their jobs.35%

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1. Changes affect participants

While almost half of public education employers are focused on

stability, mirroring a trend among all employers, it is not as even in

state and local governments, with an even larger percentage – 65

percent – focused on creating stability amidst change.7

2. Budgeting for benefits

Higher education employers are more likely (41 percent) than their

K-12 counterparts (26 percent) to change plan design to help balance

their budgets. However, K-12 and higher education employers are

about equally as likely to consider increasing employee contributions

and to encourage competitive bidding. On the state and local

government side, 66 percent of public sector government employees

agree that non-medical benefits such as critical illness and accident

coverage can help limit their out-of-pocket expenses. On the other

hand, government employers believe that voluntary benefits can help

employees pay for out-of-pocket medical expenses.8

3. Enhanced benefits packages

In the current marketplace, employees have more flexibility to seek

out employment opportunities that better fit their needs and wants

rather than remain in a position for its job security. In fact, 45 percent

of employees say that they would be likely or very likely to look for

other jobs outside their current organization within the next year.9

As voluntary benefits have become more mainstream, they play an

important role in enhancing benefits packages to satisfy employees’

needs. Increasingly, embracing non-traditional voluntary benefits

is becoming a method of providing enhanced benefits packages.

Purchasing Power’s employee purchase program is one of the

non-traditional voluntary benefits that supports key HR objectives

by providing a no-cost, no-liability benefit that gives employees a

manageable, convenient way to access products and services –

including educational services – that are often out of reach.

4. Member benefits that resonate

Public Sector Associations are finding that attracting and retaining

members often depends on their member benefit package. With

Purchasing Power, Associations can enhance their membership

package, increase member satisfaction and add to their non-dues

revenue.

TrendsTrends to watch in the Public Sector industry includes:

1 Citi Perspectives for the Public Sector, 2015-2016. 2 2016 Aflac WorkForces Report. 3 2014 Marketing General Membership Marketing Benchmarking

Report. 4 2015 Harris Poll on behalf of Purchasing Power. 5, 6 2016 Aflac WorkForces Report. 7MetLife 14th Annual Employee Benefit Trend Study 8

Employee Benefit Adviser, “Public Sector Employees,” Cort Olsen, October 4, 2016 9 Society for Human Resource Management (SHRM), “Employee Job

Satisfaction and Engagement: Revitalizing a Changing Workforce,” April 2016.

“Purchasing Power” is a registered trademark of Purchasing Power, LLC. Other trademarks or registered trademarks used are the property of their respective owners.

Pub. Date 02.2017 © 2017 Purchasing Power, LLC. All rights reserved | * Definitive 2016 customer survey responses

Citations

About Purchasing PowerWe help employees who are underserved by traditional financing options access life-enhancing products and services. Employees can purchase the items

they need and affordably spread payments across 12 months to give them peace of mind and control over their finances. Our pricing is transparent with no

hidden fees, no interest, no credit checks.

Why We Do It

• To improve employee financial well-being

• To empower people to take control of their lives

• To help organizations recruit and retain employees

Visit us at PurchasingPower.com/Employers.