worklife balance

BENEFITS ROUNDTABLE®

CORPORATE LEADERSHIP COUNCIL

CORPORATE EXECUTIVE BOARD

Designing and Implementing High-Impact Work–Life ProgramsFebruary 2010

COPIES AND COPYRIGHT

As always, members are welcome to an unlimited number of copies of the materials contained within this handout. Furthermore, members may copy any graphic herein for their own internal purpose. The Corporate Executive Board Company requests only that members retain the copyright mark on all pages produced. Please contact your Member Support Center at +1-866-913-6447 for any help we may provide.

The pages herein are the property of The Corporate Executive Board Company. Beyond the membership, no copyrighted materials of The Corporate Executive Board Company may be reproduced without prior approval.

LEGAL CAVEAT

The Benefi ts Roundtable has worked to ensure the accuracy of the information it provides to its members. This report relies upon data obtained from many sources, however, and the Benefi ts Roundtable cannot guarantee the accuracy of the information or its analysis in all cases. Furthermore, the Benefi ts Roundtable is not engaged in rendering legal, accounting, or other professional services. Its reports should not be construed as professional advice on any particular set of facts or circumstances. Members requiring such services are advised to consult an appropriate professional. Neither The Corporate Executive Board Company nor its programs are responsible for any claims or losses that may arise from a) any errors or omissions in their reports, whether caused by the Benefi ts Roundtable or its sources, or b) reliance upon any recommendation made by the Benefi ts Roundtable.

3

From the BENEFITS ROUNDTABLE ®of the www.br.executiveboard.com

© 2010 The Corporate Executive Board Company. All Rights Reserved. BR5555810SYN

TODAY’S DISCUSSION

Employee Preferences for Work–Life Benefi tsContext

Realizing theFull Value from

Work–Life Off erings

Conclusion and Roundtable Resources



4

Many organizations will need to further alter their benefi ts plan designs, as health care cost infl ation continues to strain budgets.

■ Average health care costs will continue to increase, with an average increase in 2009 of 6.4% and projections of increases in 2010 of approximately 6.9%.

■ This continued cost pressure will require many organizations to further adjust plan designs; 48% of Roundtable members already anticipate the need to redesign plans.

■ To do so eff ectively, organizations must strike the right balance between achieving cost-reduction targets while doing a minimal amount of damage to the value that employees receive from their benefi t plans. Even organizations that do not need to further cut costs will want to ensure they are maximizing the impact of their plans on employees.

INCREASING COST REQUIRES FURTHER PLAN REDESIGN

Average Health Care Cost Increases2004 Through 2009

Per

cent

Incr

ease

Running Blindfolded with Scissors“This is hard. Cutting a budget isn’t hard, but cutting it in the right way is extremely hard.

Our biggest problem is we have no idea what the real impact of our plan changes will be on employees. Are we cutting the wrong elements? Cutting too far? I hope not.”Senior Vice PresidentCompensation and Benefi tsFortune 100 Technology Company

Benefi ts Roundtable Membership Top Plan Design PrioritiesSelect Priorities for 2010

Source: Mercer Consulting.

2004 2005 2006 2007 2008 2009

7.5%

6.1% 6.1% 6.1%6.3% 6.4% 48%

37%

Cutting Costs

Increasing the Value Employees Receive

from Benefi ts



5

Work–life balance is a key employment value proposition (EVP) element for driving attraction and commitment.

■ Work–life balance elements are the number-two driver of attraction for U.S. employees and can have a 35% impact on employee commitment; employees who are committed work 57% harder and are nine times less likely to leave.

■ As the U.S. economy improves in 2010, employers whose business also improves will need to recruit new talent and keep their existing solid performers. Even employers whose business does not improve or worsens will still need cost-eff ective tactics for holding on to their best talent.

PREPARING FOR THE RECOVERY

Respondents Rating EVP Element in Top Five for AttractionU.S. Employees

Impact of Element Delivery on Commitment

U.S. Employees

58%

42%39% 39%

36% 35%32%

26%

Per

cent

age

of

Res

po

nden

ts

Rat

ing

in T

op

Fiv

e fo

r A

ttra

ctio

n

EVP Element EVP Element

Max

imum

Imp

act

on

Co

mm

itm

ent

Co

mp

ensa

tio

n

Fu

ture

Car

eer

Op

po

rtu

nit

y

Wo

rk–L

ife B

alan

ce

Wo

rk–L

ife B

alan

ce

Sta

bili

ty

Co

mp

ensa

tio

n

Hea

lth

Ben

efi t

s

Hea

lth

Ben

efi t

s

Source: Corporate Leadership Council, EVP Design Center, 2009.

6

From the BENEFITS ROUNDTABLE ®of the WWW.BR.EXECUTIVEBOARD.COM


CONJOINT SCORES DEFINED

Importance Scores—These show the relative sensitivity that employees have to change in a particular benefi t compared to other benefi ts. A higher score means that employees are relatively more sensitive to changes in the benefi t.

Value Scores—These show the relative value that employees perceive for diff erent levels or characteristics within a benefi t. A higher score means that employees assign that level/characteristic more value; value scores can be compared to each other.

The Benefi ts Value Survey used conjoint preferences techniques to determine the value employees place on diff erent benefi ts and diff erent levels of those benefi ts.

■ Conjoint surveys require respondents to actively select which of several benefi ts packages is of greatest value; the diff erent benefi ts packages have diff erent designs, forcing the respondent to implicitly trade off diff erent benefi t levels.

■ The resulting scores provide more realistic assessments of employee preference than surveys that ask for preference of individual attributes in isolation; they also allow an apples-to-apples comparison among diff erent benefi ts and levels of them.

■ Organizations can combine conjoint scores with actuarial costs to provide an ROI of each benefi t, thereby creating a measure of return.

IDENTIFYING SMART PLAN CUTS OR CHANGES

Sample Conjoint Trade-Off QuestionHealth Plan Design Module

Survey Window: July 2009

CAVEAT

Employee perceptions of benefi ts provide a critical component in making plan design decisions, and one that is often overlooked. However, there are other considerations organizations may want to take into account that are not embedded in these scores.

These include:

■ Costs (can be combined with preferences to calculate returns),

■ Company philosophy, and

■ Competitiveness.

n = 5,000.

7










8

VACATION IS COMPARABLE TO CASH

Employee Importance Scores for Select Benefi ts

Paid vacation is by far the most highly valued work–life benefi t and is almost as important as base salary.

■ Paid vacation ranks sixth in relative importance to employees when compared to all other benefi ts, making it more highly valued than retirement off erings and nearly as valued as base salary.

■ Vacation’s high value score means that employees will be relatively more sensitive to changes—either cuts or enhancements—to it than to other benefi ts with lower scores.

■ The comparability between the value scores of paid vacation and base salary (they diff er by just two points) means that the impact of base pay cuts or freezes on employee value can be at least partially mitigated by providing additional paid time off .

Source: Benefi ts Value Survey, 2009.

5856

5148

24

20 19 19 1917

13 13 1210 9 8

Bas

e S

alar

y

Pai

d V

acat

ion

Co

ntr

ibu

tio

n t

o

Ret

irem

ent

Pla

n

Ou

t-o

f-P

ock

et

Max

imu

m

Tele

com

mu

tin

g

Per

son

al L

eave

On

-Sit

e D

ayca

re

Vac

atio

n

Car

ryo

ver

Lim

it

Fle

xib

le W

ork

S

ched

ule

Sic

k D

ays

Use

of

PTO

Ban

k

Ch

ildca

re D

isco

un

t

Em

erg

ency

Day

care

Pat

ern

ity

Lea

ve

Mat

ern

ity

Lea

ve

Co

mm

un

ity

Ser

vice

Lea

ve

Work–Life Benefi ts

Non-Work–Life Benefi ts



9

VACATION MATTERS MORE NOW

Employee Importance Scores for Selected Work–Life Benefi ts2007–2009

Paid vacation increased in importance while other work–life benefi ts experienced modest declines.

■ Economic uncertainty may partially explain both trends: News reports of unpaid furloughs and mandatory time off with no or reduced pay could drive employees to value the opportunity to take paid time off from work even more.

■ Similarly, concern over potential layoff s could be leading employees to want to put in more “face time” at the offi ce, making fl exible scheduling and telecommuting options less attractive.

5355

23

19

2724

Source: Benefi ts Value Survey, 2009; Benefi ts Value Survey, 2007.

Paid Vacation Flexible Work Schedule Telecommuting

2007

2009



10

EMPLOYEES PREFER VACATION TIME TO SICK TIME

Employee Value Scores for Paid Vacation and Sick Leave

Employees show a strong preference for vacation over sick time.

■ Employees generally perceive roughly two to three times as much value from paid vacation days as they do from the same number of sick days.

■ However, if only fi ve days of paid time off were being off ered, employees would rather receive sick leave than paid vacation.

■ While employees do care about having some minimally suffi cient number of paid sick days as an insurance policy, the marginal change in perceived value is a lot more substantial from increasing the number of available vacation days than from sick days.

■ Employers with separate vacation and sick days that provide more than 10 sick days per year have an opportunity to improve employees’ perceived value of their time off benefi ts by converting some of those days to paid vacation.


0.32.4

17.6

10.4

44.5

13.7

55.5

17.3

5 10 20 25

Paid Vacation

Sick Leave

Number of Days Off ered



11

PTO PLANS ENHANCE THE VALUE OF VACATION

Employee Value Scores for Diff erent Paid Time Off (PTO) Arrangements

PTO banks that allow employees to use more of their time off for vacation increase employees’ perceived benefi ts value.

■ Partly as a result of employees’ preference for paid vacation over sick leave, employees also show a marked preference for consolidated paid time off (PTO) banks versus discrete vacation and sick leave amounts. Employees value the fl exibility aff orded to them under a PTO arrangement, since they can choose to use as much or as little of it as they would like for personal vacation/time off .

■ The good news is that this preference aligns with the existing trend for employers to move toward PTO banks: 60% of organizations have this type of arrangement.


9

13

Separate Vacations and Sick Days Vacation and Sick Days Combined in a PTO Bank



12

(SOME) VACATION CARRYOVER CARRIES VALUE

Employee Value Scores for Diff erent Levels of Vacation Carryover

Vacation or PTO plans that allow employees to carry over unused days provide a substantial increase in value.

■ Plans allowing employees to carry over up to 10 days per year (the average amount for plans with carryover features) generate 15 points of employee value more than plans that off er no carryover provisions.

■ There are diminishing marginal returns to off ering additional carryover days. Going from no carryover to 10 days creates 1.6 value points per day. However, going from 10 days to 20 days only creates 0.3 value points per day.

■ Barring any legal reasons not to do so, organizations should not allow carryover of more than 10 days per year.


1

16

19

No Carryover Up to 10 Days a Year Up to 20 Days a Year

Going from no vacation carryover to allowing up to 10 days to carryover results in a 16-fold increase in employee value…

…but doubling the carryover limit to 20 days adds little incremental value.



13

A LITTLE FLEXIBILITY GOES A LONG WAY

Employee Value Scores for Diff erent Levels of Flexible Scheduling

The value employees perceive from fl exible work arrangements increases as the level of fl exibility increases—but only up to a point.

■ For example, allowing employees to shift or reschedule 100% of their work hours in a given week creates less value than allowing them to shift or reschedule just 25% to 50% of their work hours.

■ Similarly, allowing employees to telecommute fi ve days per week creates slightly less value than allowing them to telecommute three or four days per week.

■ It may be that the economic climate of the past year has tempered employees’ preferences for the highest levels of fl exible work arrangements; in times of uncertainty—and potential layoff s—they want to ensure they have at least some “face time” in the offi ce.


Employee Value Scores for Diff erent Levels of Telecommuting

3

1314

8

1

20

2423

100% NotOff ered

1–2 Days/Week

3–4 Days/Week

5 Days/Week

50%25%0%

Percentage of Work Hours That Can Be Shifted, Rescheduled, or Canceled in a Given Week

The bulk of the value employees perceive from fl exible scheduling and telecommuting benefi ts comes from a relatively low level of the off ering.



14

EMPLOYEES DON’T CARE MUCH ABOUT CHILDCARE

Employee Importance Scores for Work–Life Benefi ts

Childcare benefi ts tend to matter less to employees, even relative to other work–life benefi ts.

■ However, on-site daycare is somewhat of an exception: Its employee importance score is slightly above the average for work–life benefi ts.

■ Organizations wanting to provide childcare assistance for reasons of competitiveness, organizational cultural, etc., should fi rst consider on-site daycare, purely from an employee value perspective (although costs should also be evaluated).


56

24

20 19 19 1917

13 13 1210 9 8

Pai

d V

acat

ion

Tele

com

mu

tin

g

Per

son

al L

eave

On

-Sit

e D

ayca

re

Vac

atio

n

Car

ryo

ver

Lim

it

Fle

xib

le W

ork

S

ched

ule

Sic

k D

ays

Use

of

PTO

Ban

k

Ch

ildca

re D

isco

un

t

Em

erg

ency

Day

care

Pat

ern

ity

Lea

ve

Mat

ern

ity

Lea

ve

Co

mm

un

ity

Ser

vice

Lea

ve

Average = 18

Childcare discounts and emergency daycare are below average in importance, even relative to other work–life benefi ts.



15

15

7

1819

Off ering childcare benefi ts that are relatively costly for employees does not help—and may even hurt—employee value.

■ Off ering an expensive ($1,000 per month) on-site daycare option to employees is worse than not off ering it at all, in terms of employee value.

■ Purely from an employee value perspective, organizations that are going to off er childcare benefi ts should make them available at relatively low costs to employees. However, organizational culture, costs, competitiveness, or other factors should also be considered—along with the fact that even off ering free on-site daycare provides only a modest increase in employee-perceived value.

CHILDCARE BENEFITS THAT CREATE HIGH EMPLOYEE COSTS DON’T CREATE VALUE

Employee Value Scores for Diff erent Levels of On-Site Daycare

…but even off ering free on-site daycare provides only a modest increase in employee-perceived value.

Going from not off ering any on-site daycare to off ering it at a cost of $1,000 per month for the employee results in a nearly 50% decrease in perceived value…

Not Off ered Off ered for $1,000 per Month

Off ered for $500 per Month

Off ered at No Cost




16

Off ering midlevel amounts of maternity and paternity leave creates the most employee value.

■ Employees prefer one month of maternity leave to two months and one month of paternity leave to three months.

■ Reducing leave amounts can generate modest improvements in employee value (although organizational culture and competitiveness should also be considered).

■ The growing presence of Generation Y employees in the workforce may be a contributing factor: Those who are less likely to use the benefi t still value having a “basic” amount available, but perceive overly generous off erings to be unfair.

■ In addition, those employees who do take advantage of parental leave benefi ts may worry that if they are away from work for too long, they will be “forgotten.”

OFFER PARENTAL LEAVE—UP TO A POINT

Employee Value Scores for Diff erent Amounts of Maternity Leave

Employee Value Scores for Diff erent Amounts of Paternity Leave

8

9

6

4

10

9

Off ered as Legally Required

One Month Beyond Legal

Requirement

Two Months Beyond Legal

Requirement

Not Off ered One Month Three Months

Employees perceive the greatest value from parental leave benefi ts when just one month off is made available.




17

1

6

14

20

Employees prefer shorter, at least partially paid leaves (for sabbaticals or eldercare) to longer, unpaid leaves.

■ For example, employees perceive up to one month of personal leave with 50% of salary as more than twice as valuable than up to three months of personal leave with no salary.

■ Employers off ering unpaid leave should be mindful of the fact that employees’ concerns over lost salaries could dissuade them from taking advantage of the benefi t when they really need it.

MONEY, NOT TIME, MATTERS FOR PERSONAL LEAVE

Employee Value Scores for Diff erent Levels of Personal Leave

Not Off ered Up to Three Months with

No Salary

Up to One Month with 50% Salary

Up to Three Months with 50% Salary

∆ = 133%




18

Employees place relatively little importance on time off for volunteering or community service.

■ While employers may have many reasons for wanting to provide community service leave (e.g., adhering to company values, generating goodwill in the community), they should not expect this type of benefi t to have much of an impact on employees’ perceived value of their benefi ts package.

■ Employees prefer fl exibility in their time off : Paid vacation matters more than sick leave (which can only be used when you are sick), and PTO banks (which let you use up to all of your time off for vacation) are preferred to discrete vacation and sick leave off erings. The constraints associated with many community service leave programs—such as limits on what activities can be done—likely contribute to their relatively modest impact on employee value.

COMMUNITY SERVICE LEAVE GENERATES GOODWILL, BUT NOT MUCH EMPLOYEE VALUE

Employee Value Scores for Diff erent Levels of Community Service Leave

3.7

8.17.8

Not Off ered Up to Five Days a Year Up to 10 Days a Year


19










20

83%

50%

44%

37% 36% 36% 36%

31%29%

27%

22%20%

17%15%

11% 11%

Roughly 70% of employees are not aware of their employers’work-life programs.

■ While almost all employees know about and understand their organization’s vacation or paid time off policy, most do not realize they also have access to a wide array of “non-core” work-life off erings.

UNDER–UTILIZED BENEFITS

Employee Awareness of Work–Life Off erings

Vac

atio

n

Per

son

al In

sura

nce

Fle

xib

le S

ched

ulin

g A

rran

gem

ents

Tele

com

mu

tin

g O

pti

on

s

Co

un

selli

ng

Ser

vice

s

Em

erg

ency

Lea

ve

Rem

ote

Wo

rk A

rran

gem

ents

Co

mm

un

ity

Ser

vice

Lea

ve

Op

tio

nal

Wo

rklo

ad A

dju

stm

ents

Per

son

al T

ime

Par

enta

l Lea

ve

On

-Sit

e D

ayca

re

Co

nci

erg

e S

ervi

ces

Par

t-T

ime

Wo

rk O

pti

on

s

Job

-Sh

arin

g

Sab

bat

ical

Lea

ve

Per

cent

age

of

Em

plo

yees

Aw

are

of

Off

erin

g a

nd H

ow it

Wo

rks



21

31% Disagree

35% Neutral

34% Agree

21% Disagree

29% Neutral

50% Agree

Only a third of all managers promotework–life balance and benefi ts, leading employees to discount and under-utilize those benefi ts.

■ Lack of manager support leads to employee assumptions that do not promote the use of work–life programs.

THE PERCEPTION OF WORK–LIFE INFLUENCES ITS USE

“My Manger Promotes the Use of Work–Life Programs Off ered by My Organization”Percentage of Employees Agreeing or Disagreeing

“In Order to Get Ahead in This Organization Employees Should Work Long Days and Be Available All of the Time”Percentage of Employees Agreeing or Disagreeing

Source: Corporate Leadership Council research.



22

The most cost-effi cient method for using work-life balance is to increase employee knowledge of these programs and change employee and manager perceptions of them.

INFORM AND CONVINCE TO ACHIEVE ROI

Benefi ts Decision Readiness Stages

Knowledge:Understanding the Off ering

Perception:Evaluating the Off ering

Behavior:Using the Off ering

Theme “I know what benefi ts I need, and I know what this off ering does.”

“I want (to use) this off ering.” “It’s worth the price right now.”

Sample Benefi ts Objectives

■ Increase employee awareness of an off ering

■ Remind employees of an upcoming date or event

■ Inform employees about a specifi c off ering change

■ Increase employee perceived value of an off ering

■ Change employee perceptions toward certain benefi ts

■ Increase employee participation in a benefi ts activity

■ Increase usage of one off ering over another

Information Needed

■ What is this work-life program?

■ How will it help me balance my work and personal responsibilities?

■ How well does this off ering help me balance my work and personal responsibilities?

■ What are some of the specifi c advantages to participating in this work-life program?

■ Are there any drawbacks or costs associated with this work-life off ering?

■ Why is it important for me to begin taking advantage of work-life off erings now?

■ Will the improvements in my work-life balance outweigh any drawbacks, such as decreased “face time” in the offi ce?



23

A RECOMMENDED COMMUNICATION STRATEGY

Communication Strategy for Changing the Perception of Work–Life Benefi ts

The Roundtable’s communication framework recommends four steps for changing employee perception.

Segment communications to allow for targeted messaging, focusing on managers and key employee segments.

Carefully focus content to answer “what’s in it for me.”

The “what’s in it for me” should focus on diff using the perceived risk of using the benefi ts as well as promoting the positiveaspects of the benefi ts.

The “what’s in it for me” should focus more on tangible examples of how productivity can be maintained, or increased, with the use of work–life programs.

■ Through communications

■ By example

Use senior management as a communication source to lend credibility to the organization’s commitment to work life programs

Leverage coworkers as a communication source to further promote the programs to their peers.

1 2 3 4

EMPLOYEES

MANAGERS

+ +



24

A SAMPLE COMMUNICATION

Pearson’s Work-Life NewsletterExcerpt

Pearson’s work-life newsletter emphasizes the mental and physical health benefi ts of taking personal time away from work.

For a growing number of people, there’s a surprising antidote to thoseWinter Blues: winter gardening! Whether indoors or out, gardening andthe nurturing of living things can improve your mood… and your health.

LET IT GROW… INDOORSFor many, the subtle joys of indoorgardening are the winter focus. With theground frozen outdoors, a flowerpot canyield a world of benefits. In studies, indoorplants have been shown to reduce stress,while moderating indoor humidity andactually cleansing the air you breathe, thusreducing your chances of catching an

airborne bug. Plant herbs and have the added benefit of a tasty boostto your winter menu!

One word of caution: if you do bring any new plants into yourhome, keep them separate from your existing plants until you’re surethey’re not bringing in any unwelcome pests.

To light up these dark winter nights, you could plant an amaryllisbulb. Available in a spectrum of beautiful colors at your local gardencenter, tend them well in a well-lighted space and you’ll have ablossoming amaryllis to lift your mid-winter spirits!

PLAN NOW FOR THE SPRINGOne of the great delights of gardening is the anticipation of newgrowth and new beauty in the lengthening days to come. Therefore,you might choose to focus your energies on plans for the comingspring (it may not seem like it sometimes, but it is coming!).

Go through gardeningmagazines for ideas you maywant to try. Keep a journal of

the ones you like. Read up on subjects you’re curious about: there’salways something new to learn, even for a Master Gardener. Which,incidentally, you might choose to become. Odds are a nearby collegeor university offers the requisite horticultural courses on flower andvegetable gardening, insect pests and plant diseases, trees and shrubs,and landscape design. Or you may prefer to expand your knowledgevia the seminars offered through many township recreationdepartments and community college night schools.

Getting together with friends in a garden book club is another niceway to combine the love of gardening with a chance for casualsocializing to break up the winter doldrums.

Whatever way you choose to enjoy winter gardening, you’ll find themental and physical health benefits will surely grow on you.http://gardening.about.com

THANKS FOR READING

WORKLIFE WATCH.PLEASE SEND ANY FEEDBACK TO

[email protected]

PERSONAL TIME

4

JANUARYNATIONAL SOUP MONTH Now thatNational Gazpacho Day (December 6) and

National Bouillabaisse Day (December 14) are past, you cancheer up the winter days in a month-long celebration of soup:one of the most comforting of comfort foods. Nutritious, easyto make, and as diverse as your own imagination, soup can be aquick snack or a main course (and if it’s chicken soup, a virtualmedication). To plan your soup celebration, log on atsoup.allrecipes.com, where you’ll find 1,250 reader-submittedsoup recipes, complete with reader reviews!

FEBRUARYHEART HEALTH MONTH Local chaptersof the American Heart Association willcelebrate throughout the month with eventsdesigned to raise awareness of heart-related health issues (as wellas funds). For instance, were you aware that heart disease andstroke are the #1 and #3 killers of women today? To learn aboutevents in your area, log onto americanheart.org and look upyour local chapter under “Local Info.”

MARCHNATIONAL WOMEN’S HISTORY MonthThe theme for this year’s celebration is“Women Change America.” Since PresidentCarter issued the first Presidential Proclamation calling onAmericans to remember women’s contribution to America,women as diverse as blues singer Ma Rainey and aviator AmeliaEarhart have been honored for their role in transforming oursociety and continuing to move it forward. To learn more, logon to the National Women’s History Project site at nwhp.org.

DID YOU KNOW?

25



IMPLICATIONS

Implications for Work–Life Benefi ts

1. Communicate work–life benefi ts to drive attraction and commitment. Particularly as the economy improves and labor markets tighten, work–life benefi ts will be a cost-eff ective way to help keep and acquire talent. Employers looking to use work–life off erings to drive attraction and commitment should use communications to emphasize benefi ts that are more important to employees, like paid vacation or telecommuting.

2. Off er more vacation if you have to cut pay. Since employees value paid vacation almost as much as cash compensation, the impact of base pay cuts or freezes on employee perceptions can be mitigated somewhat by off ering additional paid time off , which is likely to cost the organization less.

3. Build more fl exibility into vacation plans. Design elements that enhance employee control or fl exibility over how much vacation to take when, such as a consolidated paid time off (PTO) bank or carryover feature, can generate substantial increases in employee value.

4. Take a closer look at parental leave benefi ts. While organizational culture and competitiveness also need to be considered from a standpoint of employee perceptions, many employers can safely reduce the generosity of parental leave benefi ts.

5. Enhance the generosity of childcare benefi ts—or cut them. Organizations that want to provide childcare coverage for competitive or other reasons should consider relatively more generous off erings to address employee preferences and promote utilization; low amounts of these benefi ts (i.e., where childcare is available but relatively expensive for the employee) can hurt employee value.

26








27



9.312.7 15.5

19.8 21.5

Be Cautious of Going to $20 for Generic Drugs

There are certain thresholds that employees are especially loathe to cross

Generic Prescription Drug Co-Pay

Employee Value

$30 Co-Pay

$25 Co-Pay

$20 Co-Pay

$15Co-Pay

$10 Co-Pay

Going from a $15 co-pay for generic drugs destroys 4.3 “value points” compared to 1.7–3.4 for all other tested changes of equivalent magnitude.

BENEFITS ROUNDTABLE PLAN DESIGN RESOURCES

Get comprehensive and unlimited benchmarks for 10 benefi ts by size and industry.

Identify design changes that increase perceived value or lower costs using data-driven guidance.

BENCHMARK PLAN DESIGNS TARGET HIGH-RETURN DESIGN CHANGES

To Access Roundtable Resources: Go to www.br.executiveboard.com. Click on the Topics tab. Click on the Plan Design Center link.1 2 3

Save time, lower consulting spend, and reduce overall benefi ts spend.

Plan Design Benchmarking—Medical Plans

Industry: All Employee Size: AllFortune 100/500: All Number of Observations: 458

Annual DeductibleThe chart below shows the average annual deductible for full-time employees as single enrollees in different types of medical plans.

Average Annual Deductible, Employee Only

$512

$927

$457

$879

$45

$417

$28$275$215

$539$416$485

$1,343

$1,766

All Plans Type 1 Type 2

Medical Plan Type

Type 4 Type 5 Type 6

In-Network Out-of-Network

Type 3

RESOURCE: PLAN DESIGN AND POLICY BENCHMARKING CENTER

RESOURCE: EMPLOYEE BENEFITS PREFERENCES SERIES

28



Key FeaturesTarget ompany fiTa n- es

eIn -momen xper roups

Benefi ts Roundtable ConsultingHelping benefi ts executives and their teams reduce consulting costs andincrease staff effi ciency by providing end-to-end assistance for major projects and supporting the day-to-day management of key benefi ts processes

BENEFITS ROUNDTABLE PLAN DESIGN RESOURCES

Use our online modeling tool to evaluate your plan designs and compare plan changes.

Work directly with a senior consultant or use ourproject plans and tools to complete your project.

MODEL VALUE AND COST IMPACT NEW! GET EXECUTION SUPPORT FOR PLAN DESIGN PROJECTS

To Access Roundtable Resources: Go to www.br.executiveboard.com. Click on the Topics tab. Click on the Plan Design Center link.1 2 3

Save time, lower consulting spend, and reduce overall benefi ts spend.

RESOURCE: BENEFITS VALUE ASSESSMENT TOOL

RESOURCE: DIY AND ADVICE-BASED CONSULTING

Plan(s) PPO Proposal #1 PPO Proposal #2 PPO Proposal #3

Component(s) Level Value Level Value Level Value

Annual Deductible $500 (single)/$1,000 (multiple)

17.5 $625 (single)/$1,250 (multiple)

13.3 $1,000 (single)/$2,000 (multiple)

0.8

Health Premium Share

$35 (single)/$95 (multiple)

38.8 $75 (single)/$150 (multiple)

28.9 $50 (single)/$100 (multiple)

35.1

Generic Drug Co-Pay

$12.50 copayment

20.7 Employee pays 15%

15.4 $22.50 copayment

14.1

Monthly 401(k) Match

.75/$1 match, $200 max

46.9 .75/$1 match, $150 max

42.1 50 cents per dollar match (max of $150/month)

36.7

Paid Vacation 2 more weeks 24.7 Half a week more

7.1 1 more week 14.3

Total Value 402 354 342

29



BENEFITS ROUNDTABLE COMMUNICATION RESOURCES

Save time and reduce consulting spend by using the Roundtable’s suite of online, project support resources to develop plans and create employee benefi ts communications.

Audit your plan’s eff ectiveness and get targeted recommendations to increase impact on employee benefi ts knowledge and decisions

Defi ne your strategy to launch high impact campaigns that achieve your benefi ts objectives

Work directly with a senior consultant or use our project plans and tools to complete your project

EVALUATE YOUR PLAN’S EFFECTIVENESS

TAILOR READY-TO-USE PLAN DOCUMENTS

NEW! GET EXECUTION SUPPORT FOR COMMUNICATION PROJECTS

RESOURCE: BENEFITS COMMUNICATIONS AUDITOR RESOURCE: COMMUNICATION PLAN PRESENTATIONS RESOURCE: ROUNDTABLE CONSULTING SERVICES

To Access RoundtableCommunications Resources: Go to www.br.executiveboard.com. Click on the Topics tab. Click on the Benefi ts Communications link.1 2 3

30



BENEFITS ROUNDTABLE COMMUNICATION RESOURCES

To Access RoundtableCommunications Resources: Go to www.br.executiveboard.com. Click on the Topics tab. Click on the Benefi ts Communications link.1 2 3

Ut enim ad minim veniam, quis nostrud exercita-

tion ullamco laboris nisi ut aliquip ex ea commo-

do consequat. Lorem ipsum dolor sit amet, con-

sectetur adipisicing elit, sed do eiusmod tempor

incididunt ut labore et dolore magna aliqua. Ut

enim ad minim veniam, quis nostrud exercitation

ullamco laboris nisi ut aliquip ex ea commodo

consequat . Duis aut e irur e dolor in reprehenderit

in voluptate velit esse cillum dolore eu fugiat

nulla p ariat ur. Excepteur sint occaecat cupidatat

non proident, sunt in culpa qui officia deserunt

mollit anim id est laborum.

T hir d-level Head

Lorem ipsum dolor sit amet, consectetur adipisic-

ing elit, sed do eiusmod tempor incididunt ut

Secondary HeadLorem ipsum dolor sit amet, consectetur adipisic-


labore et dolore magna aliqua. Ut enim ad minim

veniam, quis nostrud exercitation ullamco laboris

nisi ut aliquip ex ea commodo consequat. Duis

aute irure dolor in reprehenderit in voluptate

velit e sse cillum dolore eu fugiat nulla pariatur.

Ex cepteur sint occaecat cupidatat non proident,

sunt in culpa qui officia deserunt mollit anim id

est laborum.

For e xample , dolor in r eprehenderit in volup-

tat e velit esse cillum dolore eu fugiat nulla

pariat ur. Excepteur sint occaecat cupidatat

non proident, sunt in culpa qui officia deserunt

mollit anim id est laborum.





nisi ut aliquip e x ea commodo consequat. Lorem

ipsum dolor sit amet, consectetur adipisicing elit,

sed do eiusmod tempor incididunt ut labore et

dolore magnaliquip e x ea commodo c onsequat.

Duis aute irure dolor in reprehenderit in volup-

tate velit esse cillum dolore eu fugiat nulla

pariatur. Excepteur sint occaecat cupidatat non

proident, sunt in culpa qui officia, incididunt ut

labore et dolore magna aliqua.

3

Excepteur sint occaecat cupi-datat non proident, sunt inculpa qui officia deserunt lit

Pull quote goes here and hereand here. Pull quote goes here

Use simple pictures andillustrations to break up thelook of “heavy” text and makethe brochure more inviting.

Use examples to answer the“how does this affect me”question.

Use two column layout.

Use bright colors to give theimpression of simplicity.

49%

31%

20%

2

Secondary HeadLorem ipsum dolor sit amet, consectetur adipisic-




nisi ut aliquip ex ea commodo consequat. Duis

aute irure dolor in reprehenderit in voluptate

velit e sse cillum dolore eu fugiat nulla pariatur.

Ex cepteur sint occaecat cupidatat non proident,

sunt in culpa qui officia deserunt mollit anim id

est laborum:

Duis aute irure dolor

Excepteur

Occaecat cupidatat non proident

Sunt in culpa qui officia





nisi ut aliquip ex ea commodo consequat. Lorem

ipsum dolor sit amet, consectetur adipisicing elit,

sed do eiusmod tempor incididunt ut labore et

dolore magna aliqua. Ut enim ad minim veniam,

quis no strud e xercitation ullamco laboris nisi ut

aliquip ex ea commodo consequat. Duis aute

irur e dolor in r eprehenderit.

Main Head Goes Here

Use bullets to simplify messages.Rephrase paragraph text whennecessary.

Third-level Head

Lorem ipsum dolor sit amet, consectetur adip-

isicing elit, sed do eiusmod tempor incididunt ut

labore et dolore magna aliqua. Ut enim ad

minim veniam, quis nostrud exercitation ullam-

co laboris nisi ut aliquip ex ea commodo conse-

quat. Duis aute irure dolor in reprehenderit in

voluptate velit esse cillum dolore eu fugiat nulla

pariatur. esse cillum dolore eu fugiat nulla

pariatur. Ut enim ad minim veniam, quis nostrud

exercitation ullamco laboris nisi ut aliquip ex ea

commodo consequat. Lorem ipsum dolor sit

ame t, consectetur adipisicing elit, sed do eius-

mod t empor incididunt ut labore et dolore

magna aliqua. Ut enim ad minim v eniam, quis

nostrud exercitation ullamco laboris nisi ut

aliquip ex ea commodo consequat. datat non

proident, sunt in culpa qui officia deserunt mol-

lit anim id est laborum.

Low(under 10%)

Medium(10–30%)

High(over 30%)

Sample of a Bar Chart

Title of chart goes here

40%

30%

20%

10%

Use a variety of headers tobreak up text. Vary the colorof headers by level to addinterest.

Use charts and graphs to reinforcemessages. Keep labels simple and usedata relevant to your audience. Forexample, if average salary is $30,000,don’t use $75,000 in an example.

Jump-start the communications creation process by drawing upon content and layout ideas used by your peers

Use professionally designed templates, ready to “cut and paste” text, and formatting advice proven to be eff ective

Work directly with a senior consultant or use our project plans and tools to complete your project

REVIEW SAMPLE COMMUNICATIONS FROM PEERS

BUILD CUSTOM COMMUNICATIONS MATERIALS

NEW! GET EXECUTION SUPPORT FOR COMMUNICATION PROJECTS

Save time and reduce consulting spend by using the Roundtable’s suite of online, project support resources to develop plans and create employee benefi ts communications.

RESOURCE: SAMPLE COMMUNICATIONS LIBRARY RESOURCE: COMMUNICATIONS BUILDER RESOURCE: ROUNDTABLE CONSULTING SERVICES

BENEFITS ROUNDTABLE®CORPORATE LEADERSHIP COUNCIL

CORPORATE EXECUTIVE BOARD


For more information:

Catherine ChoeSenior Director, Benefi ts [email protected]

worklife balance

Business

roundtable resources

value employees

benets plan designs

benets fortune

worklife benets context

employee commitment

worklife balance elements

high impact worklife