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There's a disconnect between the dollar
amount organizations spend on benefits and
employees' perception of their
value.
Almost 40 percent of U.S. employers'
payroll now reflects the cost of employee
benefits, according to the
Society for Human Resource Management's 2007
Benefits Survey Report, released in June.
"Managing the cost of benefits is a
major challenge organizations face today,"
says SHRM Survey Research Specialist,
Shawn Fegley, the survey's project leader.
The following are highlights from the
survey. For the full report, send me an
email at les@execsearchintl.com.
A key take-away: Employees
consistently rate benefits as one of the key
factors in job satisfaction. But a
disconnect exists between the dollar amount
organizations spend on benefits and
employees' perception of the value of their
benefits package.
"It is essential that you help your
employees fully understand all their options
and the true value of their benefits
package," Fegley advises. "Total
compensation statements, employee meetings
and workshops are examples of communication
methods that HR professionals and other
company leaders can use so their benefits
program is valued and used by employees."
A large majority of corporate leaders and
HR professionals review their benefits
programs at least once a year, the survey
reveals. Organizations should review their
benefits not only to monitor costs but
also to evaluate the competitiveness of their
program.
HR professionals can use benchmarking
tools, survey reports and needs assessments
to customize their benefits program to meet
employee needs and to remain competitive. In
addition, HR professionals should monitor
changes in legislation to make sure their
benefits remain compliant with local, state
and federal laws and regulations.
Most Popular Benefits
Family friendliness. Three out of
four HR professionals (75 percent) say that
their organizations offer dependent
care flexible spending accounts (FSAs).
For the seventh consecutive year, this is the
most commonly offered family-friendly
benefit.
Other popular family-friendly benefits
include life insurance for dependents
(65 percent) and flextime (58
percent), which lets employees select their
work hours within limits.
Telecommuting is offered by 56 percent
of respondents, and 21 percent make it
available on a full-time basis.
Career development assistance. An
overwhelming 96 percent say their
organizations offer professional development
opportunities such as seminars,
conferences or courses, while 91 percent
offer memberships in professional
organizations and 78 percent pay
for professional license application or
renewal fees.
Retirement and financial planning.
U.S. employers offer several types of
retirement plans, including: pre-tax
401(k)-type defined contribution plans
(83 percent).
Educational assistance. Two-thirds
(68 percent) offer undergraduate
educational assistance, and 65 percent
provide graduate educational
assistance.
Monetary bonuses. Overall, 63
percent offer some form of incentive bonus
plans—60 percent offered the plan to
executive employees and 47 percent to
non-executive employees.
Prescription drug coverage.
Prescription drug coverage is the most
frequently offered health care benefit for
the fifth year in a row, with 95 percent
making it available. Mail-order
prescription programs are offered by 87
percent.
Health care insurance. Nearly all
HR professionals (96 percent) indicate that
their organizations offer some health care
coverage, and 41 percent offer health
insurance to part-time employees.
Preferred-provider organization (PPO)
plans are provided by 87 percent, while 48
percent offer health maintenance
organization (HMO) plans.
An overwhelming 94 percent provide
dental insurance to employees, and
over three-quarters (79 percent) offer
vision insurance. These programs may
be part of or in addition to other health
care plans.
Other forms of offered insurance include
chiropractic insurance (80 percent),
mental health insurance (73 percent),
supplemental health accident insurance
(49 percent), long-term care insurance
(46 percent), intensive care insurance
(40 percent), critical illness insurance (38
percent), cancer insurance (35 percent) and
hospital indemnity insurance (27 percent).
Preventative health and wellness.
The most commonly offered preventive
care benefit is on-site vaccinations (62
percent), followed by health screening
programs for conditions such as high blood
pressure or high cholesterol (47
percent).
Mental and emotional health.
Employee assistance programs (EAPs)-providing
confidential counseling to help employees
with problems that may distract them from
their work-are offered by 73 percent of
respondents.
For a copy of "At IBM, a
Vacation Anytime, or Maybe None," a must read
article on flex time and creative vacation
policies, email me at les@execsearchintl.com.
The preceding is based on
information provided by The Society of Human
Resource Management. This material is
provided as general information only and does
not constitute and is not a substitute for
legal or other professional
advice
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