The last few decades have seen a shift from a "defined benefit" to a "defined contribution" model, in which employees have been given more choices to manage the types of benefits they would most like to receive.
And yet, increased choice brings along with it increased risk. For instance, who wouldn't want paid time off? It has an immediate payoff, and in fact, a large number of employees who were surveyed in a recent Mercer study released today indicated paid time off ranked high for them.
These immediate payoffs, however, can come at the cost of long-term benefits, such as protection from a catastrophic loss that could come in the form of a large hospital bill, for instance. So how can companies help employees make smarter benefit choices? Mercer's Dave Rahill provides insight in today's lesson.