According to this research, the majority of HR professionals indicated that their organizations have been negatively affected by the U.S. and global economic recession. In this ever-changing economic climate, organizations are looking for ways to manage costs while at the same time dealing with the escalating expenses of employee benefits. So it is not surprising that 72% of HR professionals reported that the benefits offerings at their organization have been affected in some way.
Additional noteworthy findings included the following:
– Employee benefits remained relatively stable from 2009 to 2010. Last year’s study revealed a small decrease in the percentage of organizations offering benefits from 2008 to 2009.
– The areas that experienced the biggest downward trend since 2009 were housing and relocation benefits and business travel benefits.
– Even though employee benefits have remained relatively stable since 2009, benefits offerings experienced a downward trend when compared with results from five years ago.
– With a few exceptions, the survey findings suggest that organizations with larger staff sizes were more likely than smaller ones to offer any given benefit.
– More than three-quarters (79%) of organizations reported they reviewed their benefits programs annually, and 10% reported reviewing them even more frequently.
– Organizations spent on average 19% of an employee’s annual salary on mandatory benefits, 18% on voluntary benefits and 11% on pay for time not worked benefits.
The Juggle – The Decline of Family-Friendly Benefits
Source: Sarah E. Needleman, Wall Street Journal, July 8, 2010