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Ee benefits ca-benefitstoretain
1.
SHRM Survey Findings:
Employee Benefits in California—Leveraging Benefits to Retain Employees April 23, 2014
2.
• This is
part four of a series of SHRM survey findings examining employee benefits in the workplace of California organizations. • The following topics are included in the six-part series titled Employee Benefits in California: » 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 Employee Benefits in California—Leveraging Benefits to Retain Employees ©SHRM 2014 2 Introduction
3.
• For the
purpose of this survey, the following definitions were used: » Highly skilled employees: employees with skills that are critical to the short- and long-term success of their operating unit or the organization. » High-performing employees: employees who were ranked among the top 10% in their organization’s last performance review. Employee Benefits in California—Leveraging Benefits to Retain Employees ©SHRM 2014 3 Definitions
4.
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? Only one in five (20%) California organizations reported leveraging their benefits program to retain employees. • What benefits offerings have been leveraged to retain employees at all levels of the organization? Similar to the overall findings, organizations in California reported that health care (68%) and retirement savings and planning (55%) are 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? HR professionals in California indicated that professional and career development benefits (67%) and health care (63%) are two of the benefits that would increase in importance with respect to retaining employees. Employee Benefits in California—Leveraging Benefits to Retain Employees ©SHRM 2014 4 Key Findings for Retaining Employees at All Levels California
5.
Leveraging Benefits to
Retain Highly Skilled Employees • Are organizations leveraging their benefits program to retain highly skilled employees? About one-fifth (21%) of organizations in California reported leveraging their benefits program to retain highly skilled employees. • What benefits offerings have been leveraged to retain highly skilled employees? Health care (67%), professional and career development benefits (46%), and flexible working benefits (46%) are the benefits most frequently leveraged to retain these employees in California. Compared to the overall findings, many benefits were leveraged less often by organizations in California, with the largest difference of 23 percentage points for retirement savings and planning benefits (36% in California, 59% nationally). • In the next three to five years, what benefits offerings will increase in importance to help organizations retain highly skilled employees? Organizations indicated that retirement savings and planning benefits (64%) and heath care (64%) will increase in importance to help organizations retain highly skilled employees. Employee Benefits in California—Leveraging Benefits to Retain Employees ©SHRM 2014 5 Key Findings for Retaining Highly Skilled Employees California
6.
Leveraging Employee Benefits
to Retain High-Performing Employees • Do organizations leverage their benefits program to retain high-performing employees? Only one in five (20%) organizations reported leveraging their benefits program over the past 12 months to retain high- performing employees. • What benefits offerings have been leveraged to retain high-performing employees? HR professionals in California reported both health care (69%) and professional and career development benefits (50%) as the benefits they leverage the most to retain high-performing employees. Compared to the overall findings, some benefits were leveraged less often by organizations in California, with the largest difference of 25 percentage points for retirement savings and planning benefits (38% in California, 63% nationally). • In the next three to five years, what benefits offerings will increase in importance to help organizations retain high- performing employees? Organizations indicated that health care (65%), retirement savings and planning (63%), and professional and career development benefits (60%) are the benefits that will increase the most in importance with respect to retaining high-performing employees. Employee Benefits in California—Leveraging Benefits to Retain Employees ©SHRM 2014 6 Key Findings for Retaining High-Performing Employees California
7.
• The use
of benefits as a retention tool is not widespread among HR professionals (20% in California, 18% nationally in the past 12 months). However, considering that wage growth has been weak in the post-recession economy, HR professionals cannot always use higher salaries as a draw for keeping talent. Many recruiters now advocate using a “total rewards” approach to retention, and they encourage leveraging an employer’s benefits package as part of that strategy. • With medical costs on the rise and many workers unprepared financially for retirement, HR professionals should consider leveraging health care benefits as part of their retention strategy. Of those organizations that used benefits as a retention tool, 68% in California and nationally cited health care benefits as part of that strategy. Even with some uncertainty surrounding health care plans in connection with the Patient Protection and Affordable Care Act, HR professionals should view health care benefits, if offered at their employer, as a valuable tool for keeping workers in the fold. • Many studies have shown that members of the Millennial generation, or those born between 1982 and 2002, place a high value on flexible work schedules and managing their own time. Many organizations (46% in California, 55% nationally) that used benefits for retention of highly-skilled workers cited flexible work benefits as part of that strategy. If this benefit is offered at their employer, HR professionals should highlight this aspect of their overall benefits plans as a tool to keep talented Millennials at their organizations. Employee Benefits in California—Leveraging Benefits to Retain Employees ©SHRM 2014 7 What do these findings mean for the HR profession?
8.
Leveraging Benefits to
Retain Employees at All Levels of the Organization Employee Benefits in California—Leveraging Benefits to Retain Employees ©SHRM 2014 8
9.
Over the past
12 months, has your organization had difficulty retaining employees at all levels of the organization? Employee Benefits in California—Leveraging Benefits to Retain Employees ©SHRM 2014 9 Note: Respondents who answered “not sure” were excluded from this analysis. 28% 72% 26% 74% Yes No California (n = 310) Overall (n = 349)
10.
Over the past
12 months, has your organization leveraged your benefits program to retain employees at all levels of the organization? Employee Benefits in California—Leveraging Benefits to Retain Employees ©SHRM 2014 10 Note: Respondents who answered “not sure” were excluded from this analysis. 20% 80% 18% 82% Yes No California (n = 293) Overall (n = 335)
11.
Which of the
following benefits has your organization leveraged to retain employees at all levels within your organization? Employee Benefits in California—Leveraging Benefits to Retain Employees ©SHRM 2014 11 Note: 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. 68% 55% 45% 40% 37% 27% 27% 18% 68% 57% 43% 37% 40% 38% 27% 15% Health care Retirement savings and planning Flexible working benefits Leave benefits Professional and career development benefits Family-friendly benefits Preventive health and wellness Housing and relocation benefits California (n = 60) Overall (n = 60)
12.
Employee Benefits in
California—Leveraging Benefits to Retain Employees ©SHRM 2014 12 Within the next three to five years, what benefits offerings will increase, remain the same or decrease in importance in your organization’s efforts to retain all levels of employees? 67% 63% 60% 60% 53% 42% 25% 15% 33% 33% 36% 40% 41% 56% 73% 65% 0% 3% 3% 0% 5% 2% 2% 20% Professional and career development benefits Health care Retirement savings and planning Preventive health and wellness Flexible working benefits Family-friendly benefits Leave benefits Housing and relocation benefits Increase in importance Remain the same Decrease in importance Note: n = 46-60. Respondents who answered “not sure” and whose organizations did not leverage their benefits program to retain employees at all levels within the organization were excluded from this analysis. Percentages may not equal 100% due to rounding.
13.
Leveraging Employee Benefits to
Retain Highly Skilled Employees Employee Benefits in California—Leveraging Benefits to Retain Employees ©SHRM 2014 13
14.
Employee Benefits in
California—Leveraging Benefits to Retain Employees ©SHRM 2014 14 Over the past 12 months, has your organization had difficulty retaining highly skilled employees? 30% 70% 28% 72% Yes No California (n = 303) Overall (n = 348) Note: Respondents who answered “not sure” were excluded from this analysis.
15.
Over the past
12 months, has your organization had difficulty retaining highly skilled employees? Employee Benefits in California—Leveraging Benefits to Retain Employees ©SHRM 2014 15 Note: Only statistically significant differences are shown. Comparisons by organization staff size 100 to 499 employees (36%) > 1 to 99 employees (14%) Comparisons by organization staff size • Organizations with 100 to 499 employees are more likely than organizations with 1 to 99 employees to have had difficulty retaining highly skilled employees over the past 12 months. Comparisons by organization sector Publicly owned for-profit (50%) > Privately owned for-profit (28%) Comparisons by organization sector • Publicly owned for-profit organizations are more likely than privately owned for- profit organizations to have had difficulty retaining highly skilled employees over the past 12 months.
16.
Over the past
12 months, has your organization leveraged your benefits program to retain highly skilled employees? Employee Benefits in California—Leveraging Benefits to Retain Employees ©SHRM 2014 16 Note: Respondents who answered “not sure” were excluded from this analysis. 21% 79% 20% 80% Yes No California (n = 289) Overall (n = 335)
17.
Employee Benefits in
California—Leveraging Benefits to Retain Employees ©SHRM 2014 17 Which of the following benefits has your organization leveraged to retain highly skilled employees? 67% 46% 46% 38% 36% 28% 21% 21% 63% 55% 55% 38% 59% 41% 19% 28% Health care Professional and career development benefits Flexible working benefits Leave benefits Retirement savings and planning Family-friendly benefits Housing and relocation benefits Preventive health and wellness California (n = 61) Overall (n = 64) Note: 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.
18.
Employee Benefits in
California—Leveraging Benefits to Retain Employees ©SHRM 2014 18 Within the next three to five years, what benefits offerings will increase, remain the same or decrease in importance in your organization’s efforts to retain highly skilled employees? 64% 64% 54% 48% 46% 38% 29% 16% 34% 36% 45% 48% 51% 57% 67% 67% 2% 0% 2% 3% 4% 5% 3% 18% Health care Retirement savings and planning Professional and career development benefits Flexible working benefits Family-friendly benefits Preventive health and wellness Leave benefits Housing and relocation benefits Increase in importance Remain the same Decrease in importance Note: n = 51-59. 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 may not equal 100% due to rounding.
19.
Leveraging Employee Benefits to
Retain High-Performing Employees Employee Benefits in California—Leveraging Benefits to Retain Employees ©SHRM 2014 19
20.
Over the past
12 months, has your organization had difficulty retaining high-performing employees? Employee Benefits in California—Leveraging Benefits to Retain Employees ©SHRM 2014 20 Note: Respondents who answered “not sure” were excluded from this analysis. 31% 69% 26% 74% Yes No California (n = 307) Overall (n = 350)
21.
Over the past
12 months, has your organization had difficulty retaining high-performing employees? Employee Benefits in California—Leveraging Benefits to Retain Employees ©SHRM 2014 21 Note: Only statistically significant differences are shown. Comparisons by organization staff size 500 to 2,499 employees (38%) > 1 to 99 employees (15%) Comparisons by organization staff size • Organizations with 500 to 2,499 employees are more likely than organizations with 1 to 99 employees to have had difficulty retaining high-performing employees over the past 12 months.
22.
Over the past
12 months, has your organization leveraged your benefits program to retain high- performing employees? Employee Benefits in California—Leveraging Benefits to Retain Employees ©SHRM 2014 22 Note: Respondents who answered “not sure” were excluded from this analysis. 20% 80% 19% 81% Yes No California (n = 289) Overall (n = 336)
23.
Employee Benefits in
California—Leveraging Benefits to Retain Employees ©SHRM 2014 23 Which of the following benefits has your organization leveraged to retain high-performing employees? 69% 50% 38% 38% 36% 22% 22% 17% 63% 49% 38% 63% 57% 22% 27% 37% Health care Professional and career development benefits Leave benefits Retirement savings and planning Flexible working benefits Housing and relocation benefits Preventive health and wellness Family-friendly benefits California (n = 58) Overall (n = 63) Note: 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.
24.
Employee Benefits in
California—Leveraging Benefits to Retain Employees ©SHRM 2014 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? 65% 63% 60% 51% 47% 39% 27% 15% 31% 35% 40% 43% 51% 61% 71% 70% 4% 2% 0% 6% 2% 0% 2% 15% Health care Retirement savings and planning Professional and career development benefits Flexible working benefits Family-friendly benefits Preventive health and wellness Leave benefits Housing and relocation benefits Increase in importance Remain the same Decrease in importance Note: n = 45-61. Respondents who answered “not sure” and whose organizations did not leverage their benefits program to retain high-performing employees were excluded from this analysis.
25.
Demographics Employee Benefits in
California—Leveraging Benefits to Retain Employees ©SHRM 2014 25
26.
31% 36% 18% 10% 5% 1 to 99
employees 100 to 499 employees 500 to 2,499 employees 2,500 to 24,999 employees 25,000 or more employees Employee Benefits in California—Leveraging Benefits to Retain Employees ©SHRM 2014 26 Demographics: Organization Staff Size n = 310
27.
60% 19% 13% 7% 2% Privately owned for-profit Nonprofit organization Publicly owned for-profit Government sector Other Employee
Benefits in California—Leveraging Benefits to Retain Employees ©SHRM 2014 27 Demographics: Organization Sector Note: n = 322. Percentages do not equal 100% due to rounding.
28.
Percentage Professional, scientific and
technical services 24% Health care and social assistance 13% Manufacturing 12% Finance and insurance 10% Government agencies 8% Educational services 8% Transportation and warehousing 7% Retail trade 7% Whole trade 6% Real estate and rental and leasing 5% Accommodation and food services 4% Administrative and support and waste management and remediation services 4% Construction 4% Information 4% Utilities 4% Religious, grantmaking, civic, professional and similar organizations 3% Mining 2% Arts, entertainment and recreation 2% Repair and maintenance 2% Agriculture, forestry, fishing and hunting 2% Personal and laundry services 1% Other 9% 28Employee Benefits in California—Leveraging Benefits to Retain Employees ©SHRM 2014 Demographics: Organization Industry Note: n = 328. Percentages do not equal 100% due to multiple response options.
29.
Employee Benefits in
California—Leveraging Benefits to Retain Employees ©SHRM 2014 29 Demographics: Other U.S.-based operations only 79% Multinational operations 21% Single-unit organization: An organization in which the location and the organization are one and the same. 30% Multi-unit organization: An organization that has more than one location. 70% Multi-unit headquarters determines HR policies and practices. 59% 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. 37% 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 = 324 n = 325 Note: n = 234. Percentages do not equal 100% due to rounding. Corporate (company-wide) 78% Business unit/division 15% Facility/location 16% Note: n = 234. Percentages do not equal 100% due to rounding. What is the HR department/function for which you responded throughout this survey?
30.
SHRM Survey Findings:
Employee Benefits in California—Leveraging Benefits to Recruit Employees • Response rate = 13% • 373 HR professional respondents in California organizations from a randomly selected sample of SHRM’s membership participated in this survey • Margin of error +/- 5% • Survey fielded May 3 - June 7, 2013 Survey Methodology Employee Benefits in California—Leveraging Benefits to Retain Employees ©SHRM 2014 30
31.
• SHRM Research
Findings: State of Employee Benefits in the Workplace— Leveraging Benefits to Retain Employees • SHRM Research Findings: Employee Benefits Landscape in California • California Resources Page • Benefits Underused to Recruit, Retain, SHRM Finds • Retention Resource Page • Staffing Management Resource Page Employee Benefits in California—Leveraging Benefits to Retain Employees ©SHRM 2014 31 Additional SHRM Resources
32.
About SHRM Research •
For more survey/poll findings, visit www.shrm.org/surveys • For more information about SHRM’s Customized Research Services, visit www.shrm.org/customizedresearch • Follow us on Twitter @SHRM_Research Project leaders: Christina Lee, researcher, SHRM Research Yan Dong, SHRM Research Project contributors: Alexander Alonso, Ph.D., SPHR, vice president, SHRM Research Evren Esen, director, Survey Research Center, SHRM Research Copy editor: Katya Scanlan, SHRM Knowledge Center 32Employee Benefits in California—Leveraging Benefits to Retain Employees ©SHRM 2014
33.
About SHRM Founded in
1948, the Society for Human Resource Management (SHRM) is the world’s largest HR membership organization devoted to human resource management. Representing more than 275,000 members in over 160 countries, the Society is the leading provider of resources to serve the needs of HR professionals and advance the professional practice of human resource management. SHRM has more than 575 affiliated chapters within the United States and subsidiary offices in China, India and United Arab Emirates. Visit us at shrm.org. 33Employee Benefits in California—Leveraging Benefits to Retain Employees ©SHRM 2014
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