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SHRM Survey Findings: State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees
January 10, 2013
• This is part four of a series of SHRM surveys examining the state of employee benefits in the workplace.
• The following topics are included in this six-part series:
Part 1: Wellness initiatives
Part 2: Flexible work arrangements
Part 3: Health care
Part 4: Leveraging benefits to retain employees
Part 5: Leveraging benefits to recruit employees
Part 6: Communicating benefits
Introduction
2State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees ©SHRM 2012
Leveraging Benefits to Retain Employees at All Levels of the Organization • Do organizations leverage their benefits program to retain employees at all
levels of the organization? One in five (20%) organizations reported leveraging their benefits program to retain employees.
• What benefits offerings have been leveraged to retain employees at all levels of the organization? Organizations reported health care (72%) and retirement savings and planning (58%) were the benefits most frequently leveraged to retain employees.
• In the next three to five years, what benefits offerings will increase in importance to help organizations retain all employees? Organizations indicated that retirement savings and planning and health care are the benefits that will increase in importance with respect to retaining employees.
Key Findings
3State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees ©SHRM 2012
Leveraging Benefits to Retain Highly Skilled Employees
• Are organizations leveraging their benefits program to retain highly skilled employees? About two out of 10 (19%) organizations reported leveraging their benefits program to retain highly skilled employees.
• What benefits offerings have been leveraged to retain highly skilled employees? Health care (69%), professional and career development (54%), and retirement savings and planning (46%) were the benefits most frequently leveraged to retain these employees.
• In the next three to five years, what benefits offerings will increase in importance to help organizations retain highly skilled employees? Organizations indicated that 1) retirement savings and planning and 2) flexible working benefits are the benefits that will increase in importance with respect to retaining highly skilled employees.
Key Findings
4State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees ©SHRM 2012
Leveraging Employee Benefits to Retain High-Performing Employees
• Do organizations leverage their benefits program to retain high-performing employees? One in five (20%) organizations reported leveraging their benefits program to retain high-performing employees.
• What benefits offerings have been leveraged to retain high-performing employees? HR professionals reported health care (58%), professional and career development benefits (55%), flexible working benefits (48%), and retirement savings and planning benefits (47%) as the most frequently leveraged to retain these employees.
• In the next three to five years, what benefits offerings will increase in importance to help organizations retain high-performing employees? Organizations indicated that 1) retirement savings and planning, 2) health care, and 3) professional and career development are the benefits that will increase in importance with respect to retaining high-performing employees.
Key Findings
5State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees ©SHRM 2012
Leveraging Benefits to Retain Employees at All Levels of the Organization
Yes
No
25%
75%
7
Over the past 12 months, has your organization had difficulty retaining employees at all levels of the organization?
Note: n = 389. Respondents who answered “not sure” were excluded for this analysis.
State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees ©SHRM 2012
Yes
No
20%
80%
8
Over the past 12 months, has your organization leveraged your benefits program to retain employees at all levels of the organization?
Note: n = 379. Respondents who answered “not sure” were excluded from this analysis.
State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees ©SHRM 2012
Health care
Retirement savings and planning
Professional and career development benefits
Leave benefits
Flexible working benefits
Preventive health and wellness
Family-friendly benefits
Housing and relocation benefits
72%
58%
39%
37%
35%
30%
27%
20%
9
Which of the following benefits has your organization leveraged to retain employees at all levels within your organization?
Note: n = 74. Respondents who answered “not sure” and those whose organizations did not leverage their benefits program to retain employees at all levels within the organization were excluded from this analysis. Percentages do not equal 100% due to multiple response options.
State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees ©SHRM 2012
Retirement savings and planning
Health care
Preventive health and wellness
Professional and career development benefits
Flexible working benefits
Leave benefits
Family-friendly benefits
Housing and relocation benefits
70%
70%
65%
64%
63%
51%
50%
24%
30%
26%
32%
33%
36%
46%
49%
62%
0%
4%
3%
3%
1%
3%
1%
14%
Increase in importance Remain the same Decrease in importance
10
Within the next three to five years, what benefits offerings will increase or decrease in importance in your organization’s efforts to retain all levels of employees?
Note: n = 58-74. Respondents who answered “not sure” and whose organization did not leverage their benefits program to retain employees at all levels within the organization were excluded from this analysis.
State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees ©SHRM 2012
Leveraging Benefits to Retain Highly Skilled Employees
• For the purpose of this survey, a highly skilled employee is defined as any employee with skills that are critical to the short- and long-term success of their operating unit or the organization.
Definition
12State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees ©SHRM 2012
Yes
No
27%
73%
13
Over the past 12 months, has your organization had difficulty retaining highly skilled employees?
Note: n = 389. Respondents who answered “not sure” were excluded for this analysis.
State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees ©SHRM 2012
14
Over the past 12 months, has your organization had difficulty retaining highly skilled employees?
Comparisons by organization staff size
2,500 to 24,999 employees (42%) >
1 to 99 employees (21%)
100 to 499 employees (20%)
500 to 2,499 employees (21%)
Note: Only statistically significant differences are shown.
Comparisons by organization staff size
• Organizations with 2,500 to 24,999 employees are more likely than organizations with 1 to 2,499 employees to have had difficulty retaining highly skilled employees over the past 12 months.
State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees ©SHRM 2012
Yes
No
19%
81%
15
Over the past 12 months, has your organization leveraged your benefits program to retain highly skilled employees?
Note: n = 371. Respondents who answered “not sure” were excluded for this analysis.
State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees ©SHRM 2012
16
Over the past 12 months, has your organization leveraged your benefits program to retain highly skilled employees?
Note: Only statistically significant differences are shown.
Comparisons by organization sector
• Nonprofit organizations are more likely than publicly owned for-profit organizations to leverage their benefits program to retain highly skilled employees.
Comparisons by organization sector
Nonprofit (23%) > Publicly owned for-profit (8%)
State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees ©SHRM 2012
Health care
Professional and career development benefits
Retirement savings and planning
Flexible working benefits
Family-friendly benefits
Leave benefits
Preventive health and wellness
Housing and relocation benefits
69%
54%
46%
44%
35%
31%
27%
11%
17
Which of the following benefits has your organization leveraged to retain highly skilled employees?
Note: n = 71. Respondents who answered “not sure” and whose organizations did not leverage their benefits program to retain highly skilled employees were excluded from this analysis. Percentages do not equal 100% due to multiple response options.State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees ©SHRM 2012
Retirement savings and planning
Flexible working benefits
Health care
Professional and career development benefits
Preventive health and wellness
Family-friendly benefits
Leave benefits
Housing and relocation benefits
70%
67%
66%
66%
59%
53%
49%
27%
30%
31%
31%
31%
38%
44%
48%
65%
2%
3%
3%
3%
3%
3%
8%
Increase in importance Remain the same Decrease in importance
18
Within the next three to five years, what benefits offerings will increase or decrease in importance in your organization’s efforts to retain highly skilled employees?
Note: n = 52-68. Respondents who answered “not sure” and whose organizations did not leverage their benefits program to retain highly skilled employees were excluded from this analysis.
State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees ©SHRM 2012
Leveraging Employee Benefits to Retain High-Performing Employees
• For the purpose of this survey, a high-performing employee is defined as any employee ranked among the top 10% in the organization’s last performance review cycle.
Definition
20State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees ©SHRM 2012
Yes
No
23%
77%
21
Over the past 12 months, has your organization had difficulty retaining high-performing employees?
Note: n = 386. Respondents who answered “not sure” were excluded for this analysis.
State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees ©SHRM 2012
Yes
No
20%
80%
22
Over the past 12 months, has your organization leveraged your benefits program to retain high-performing employees?
Note: n = 370. Respondents who answered “not sure” were excluded from this analysis.
State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees ©SHRM 2012
Health care
Professional and career development benefits
Flexible working benefits
Retirement savings and planning
Leave benefits
Family-friendly benefits
Preventive health and wellness
Housing and relocation benefits
58%
55%
48%
47%
29%
27%
26%
21%
23
Which of the following benefits has your organization leveraged to retain high-performing employees?
Note: n = 73. Respondents who answered “not sure” and whose organizations did not leverage their benefits program to retain high-performing employees were excluded from this analysis. Percentages do not equal 100% due to multiple response options.State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees ©SHRM 2012
Retirement savings and planning
Health care
Professional and career development benefits
Flexible working benefits
Preventive health and wellness
Family-friendly benefits
Leave benefits
Housing and relocation benefits
70%
69%
68%
65%
57%
51%
49%
23%
30%
28%
29%
33%
41%
46%
46%
70%
0%
3%
3%
1%
1%
3%
4%
7%
Increase in importance Remain the same Decrease in importance
24
Within the next three to five years, what benefits offerings will increase or decrease in importance in your organization’s efforts to retain high performing employees?
Note: n = 56-71. Respondents who answered “not sure” and whose organizations did not leverage their benefits program to retain high-performing employees were excluded from this analysis. Percentages may not total 100% due to rounding. State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees ©SHRM 2012
State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees ©SHRM 2012 25
Organization Demographics
1 - 99 employees
100 - 499 employees
500 - 2,499 employees
2,500 - 24,999 employees
25,000 or more employees
23%
39%
22%
13%
3%
26
Demographics: Organization Staff Size
n = 447
State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees ©SHRM 2012
Privately owned for-profit
Nonprofit organization
Publicly owned for-profit
Government sector
51%
22%
19%
8%
27
Demographics: Organization Sector
n = 440
State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees ©SHRM 2012
PercentageHealth care and social assistance 19%Manufacturing 19%Professional, scientific and technical services 17%Finance and insurance 11%Government agencies 9%Educational services 7%Retail trade 5%Accommodation and food services 4%Construction 4%Information 4%Religious, grantmaking, civic, professional and similar organizations 4%Transportation and warehousing 4%Whole trade 4%Administrative and support and waste management and remediation services 3%Arts, entertainment and recreation 3%Repair and maintenance 3%Agriculture, forestry, fishing and hunting 2%Mining 2%Real estate and rental and leasing 2%Utilities 2%Personal and laundry services 1%
Demographics: Organization Industry
28
Note: n = 447. Percentages do not equal 100% due to multiple response options.
State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees ©SHRM 2012
29
Demographics: Other
U.S.-based operations only 77%
Multinational operations 23%
Single-unit organization: An organization in which the location and the organization are one and the same.
39%
Multi-unit organization: An organization that has more than one location.
61%
Multi-unit headquarters determines HR policies and practices
62%
Each work location determines HR policies and practices
5%
A combination of both the work location and the multi-unit headquarters determines HR policies and practices
34%
Is your organization a single-unit organization or a multi-unit organization?
For multi-unit organizations, are HR policies and practices determined by the multi-unit headquarters, by each work location or by both?
Does your organization have U.S.-based operations (business units) only, or does it operate multinationally?
n = 447 n = 447
Note: n = 286. Percentages do not equal 100% due to rounding.
Corporate (company-wide) 75%
Business unit/division 13%
Facility/location 12%
n = 286
What is the HR department/function for which you responded throughout this survey?
State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees ©SHRM 2012
SHRM Survey Findings: State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees
• Response rate = 12%
• 447 HR professional respondents from a randomly selected sample of SHRM’s membership participated in this survey
• Margin of error +/- 4%
• Survey fielded March 1-April 6, 2012
Survey Methodology
30State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees ©SHRM 2012
About SHRM Research
• For more survey/poll findings, visit www.shrm.org/surveys
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Project leaders:Shawn Fegley, SPHR, survey research analyst, SHRM ResearchChristina Lee, intern, SHRM Research
Project contributors:Mark Schmit, Ph.D., SPHR, vice president, SHRM ResearchEvren Esen, manager, Survey Research Center, SHRM Research
Copy editor:Katya Scanlan, SHRM Knowledge Center
31State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees ©SHRM 2012