2007 SHRM benefit survey shows slight decrease in percentage of organizations offering some financial and compensation benefits
Employee benefits in the United States remained relatively stable from 2006 to 2007, despite a slight decrease in the per centage of organizations offering some financial and compensation benefits, according to the results of the Society for Human Resources Management’s (SHRM) 2007 Benefits Survey.
The most commonly offered benefits were direct deposit of paychecks, paid holidays, professional development opportunities, payroll deductions, prescription drug program coverage and dental insurance. Additionally, almost all organizations offered some type of health insurance plans.
Larger organizations, more benefits
The SHRM study also noted that, with a few exceptions, organizations with larger staff-sizes were more likely than smaller ones to offer any given benefit. HR professionals indicated that their organizations spent an average of 38 per cent of payroll on total benefit costs: 20 per cent of the costs were due to mandatory benefits and 18 per cent due to voluntary benefits.
Automobile allowance/expenses, individual investment advice, traditional defined benefit pension plan, full flexible benefits plan, retirement planning services, employee discount on company services, commission and loans to employees for emergency/disaster assistance all decreased in 2007 from 2006.
Cell phone, pager and handheld device for personal use was the only financial and compensation benefit that was offered by more organizations in 2007 compared with 2006.
Also, HR respondents indicated they planned within the next year to include proactive wellness programs in coming benefit packages such as weight loss programs (five per cent), smoking cessation programs (six per cent), health screening programs (five per cent), and health-care premium discount for getting an annual health risk assessment (six per cent).
Most benefits remained the same in 2007 from 2006, while others had minor fluctuations. Noteworthy benefit fluctuations from the study follow:
•Vision insurance increased from 73 per cent to 79 per cent (down from 80 per cent in 2005).
•Transit subsidies increased 13 per cent to 16 per cent at the same time that auto allowances/expenses decreased 60 per cent to 49 per cent.
•Telecommuting programs increased from 26 per cent to 33 per cent for part-time; 45 per cent to 48 per cent for ad hoc; and 19 per cent to 21 per cent for full time.
•Fitness center membership subsidy/reimbursement dropped from 37 per cent to 30 per cent.
•Programs for employees to bring a child to the office in emergency situations increased from 22 per cent to 29 per cent.
•Programs for a weekly casual dress day increased from 62 per cent to 66 per cent, at the same time that daily casual business attire decreased 38 per cent to 37 per cent.
•Traditional pension plan programs (guaranteed pay based on years of service) decreased 48 per cent to 40 per cent.
•HR respondents said 70 per cent of their organizations in 2007 provided an employee prenatal program in comparison to 82 per cent in 2006.
Survey highlights
Other survey highlights are:
Overall, 41 per cent of HR professionals indicated that their organizations offered some form of domestic partner benefits (opposite-sex partners, same-sex partners or both).
Thirty-eight per cent of HR professionals reported that their organizations offered health-care benefits for dependent grandchildren, and 29 per cent offered health-care benefits for foster children.
For the seventh consecutive year, dependent care flexible spending accounts was the most commonly offered family-friendly benefit. More than three out of four HR professionals (76 per cent) indicated their organizations offered dependent care flexible spending accounts to allow employees to set aside pretax dollars that can later be reimbursed for dependent care expenses.
The surveys to HR professionals employed by companies in the U.S. were e-mailed to randomly selected SHRM members, and yielded 590 responses.
The annual survey of human resource (HR) professionals gathers information on the types of benefits employers offer to their employees. Conducted since 1996, it includes the percentages of human resource professionals whose organizations offered each benefit, comparisons across organization staff size and industry and year-to-year trends.
The most commonly offered benefits were direct deposit of paychecks, paid holidays, professional development opportunities, payroll deductions, prescription drug program coverage and dental insurance. Additionally, almost all organizations offered some type of health insurance plans.
Larger organizations, more benefits
The SHRM study also noted that, with a few exceptions, organizations with larger staff-sizes were more likely than smaller ones to offer any given benefit. HR professionals indicated that their organizations spent an average of 38 per cent of payroll on total benefit costs: 20 per cent of the costs were due to mandatory benefits and 18 per cent due to voluntary benefits.
Automobile allowance/expenses, individual investment advice, traditional defined benefit pension plan, full flexible benefits plan, retirement planning services, employee discount on company services, commission and loans to employees for emergency/disaster assistance all decreased in 2007 from 2006.
Cell phone, pager and handheld device for personal use was the only financial and compensation benefit that was offered by more organizations in 2007 compared with 2006.
Also, HR respondents indicated they planned within the next year to include proactive wellness programs in coming benefit packages such as weight loss programs (five per cent), smoking cessation programs (six per cent), health screening programs (five per cent), and health-care premium discount for getting an annual health risk assessment (six per cent).
Most benefits remained the same in 2007 from 2006, while others had minor fluctuations. Noteworthy benefit fluctuations from the study follow:
•Vision insurance increased from 73 per cent to 79 per cent (down from 80 per cent in 2005).
•Transit subsidies increased 13 per cent to 16 per cent at the same time that auto allowances/expenses decreased 60 per cent to 49 per cent.
•Telecommuting programs increased from 26 per cent to 33 per cent for part-time; 45 per cent to 48 per cent for ad hoc; and 19 per cent to 21 per cent for full time.
•Fitness center membership subsidy/reimbursement dropped from 37 per cent to 30 per cent.
•Programs for employees to bring a child to the office in emergency situations increased from 22 per cent to 29 per cent.
•Programs for a weekly casual dress day increased from 62 per cent to 66 per cent, at the same time that daily casual business attire decreased 38 per cent to 37 per cent.
•Traditional pension plan programs (guaranteed pay based on years of service) decreased 48 per cent to 40 per cent.
•HR respondents said 70 per cent of their organizations in 2007 provided an employee prenatal program in comparison to 82 per cent in 2006.
Survey highlights
Other survey highlights are:
Overall, 41 per cent of HR professionals indicated that their organizations offered some form of domestic partner benefits (opposite-sex partners, same-sex partners or both).
Thirty-eight per cent of HR professionals reported that their organizations offered health-care benefits for dependent grandchildren, and 29 per cent offered health-care benefits for foster children.
For the seventh consecutive year, dependent care flexible spending accounts was the most commonly offered family-friendly benefit. More than three out of four HR professionals (76 per cent) indicated their organizations offered dependent care flexible spending accounts to allow employees to set aside pretax dollars that can later be reimbursed for dependent care expenses.
The surveys to HR professionals employed by companies in the U.S. were e-mailed to randomly selected SHRM members, and yielded 590 responses.
The annual survey of human resource (HR) professionals gathers information on the types of benefits employers offer to their employees. Conducted since 1996, it includes the percentages of human resource professionals whose organizations offered each benefit, comparisons across organization staff size and industry and year-to-year trends.
