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2013 benefits strategies leveraging-benefits-to-recruit
1.
SHRM Survey Findings:
State of Employee Benefits in the Workplace—Leveraging Benefits to Recruit Employees December 18, 2013
2.
Introduction • This is
part five of a series of SHRM survey findings examining employee benefits in the workplace. • The following topics are included in the six-part series titled State of Employee Benefits in the Workplace: » » » » » » 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 State of Employee Benefits in the Workplace—Leveraging Benefits to Recruit Employees ©SHRM 2013 2
3.
Definition • For the
purpose of this survey, highly skilled employees are defined as employees with skills that are critical to the short- and long-term success of their operating unit or the organization. State of Employee Benefits in the Workplace—Leveraging Benefits to Recruit Employees ©SHRM 2013 3
4.
Key Findings for
Recruiting Employees at All Levels Leveraging Benefits to Recruit Employees at All Levels of the Organization • Do organizations leverage their benefits program to recruit employees? Approximately onefourth (26%) of organizations reported leveraging their benefits program to recruit employees. • What benefits offerings have been leveraged to recruit employees? Health care (81%) and retirement savings and planning (70%) still remain the top two benefits that organizations most frequently leverage to recruit employees. Compared to 2012, however, all benefits were leveraged more often in 2013, with the largest difference of 14 percentage points for leave benefits and professional and career development benefits. • What benefits offerings will increase in importance to help recruit employees in the next three to five years? Organizations indicated that retirement savings and planning benefits (64%) and health care benefits (63%) were the benefits that would increase in importance the most with respect to recruiting employees. State of Employee Benefits in the Workplace—Leveraging Benefits to Recruit Employees ©SHRM 2013 4
5.
Key Findings for
Recruiting Highly Skilled Employees Leveraging Benefits to Recruit Highly Skilled Employees • Are organizations leveraging their benefits program to recruit highly skilled employees? Although one-half (50%) of organizations indicated having difficulty in recruiting highly skilled employees, only 30% of organizations reported leveraging their benefits program to recruit these applicants. • What benefits offerings have been leveraged to recruit highly skilled employees? Health care (70%) and retirement savings and planning (61%) were the benefits most frequently leveraged to recruit these employees. Compared to 2012, the largest increases in frequency were flexible working benefits (33% to 55%) and leave benefits (34% to 46%). • In the next three to five years, what benefits offerings will increase in importance to help organizations recruit highly skilled employees? In 2013, HR professionals indicated that retirement savings and planning benefits (70%) would be the most important benefit to leverage during recruit. Health care dropped to the No. 2 position, falling from 75% to 66%. State of Employee Benefits in the Workplace—Leveraging Benefits to Recruit Employees ©SHRM 2013 5
6.
What do these
findings mean for the HR profession? • About one in four (26%) HR professionals use benefits as a recruitment tool. Though not a significant number, many recruiters now advocate using a “total rewards” approach to attracting new employees, and they encourage leveraging an employer’s benefits package as part of that strategy. HR professionals cannot always use higher salaries as a draw for new talent because wage growth has been very weak in the post-recession economy. • With medical costs on the rise and many workers unprepared financially for retirement, HR professionals should consider leveraging health care benefits and retirement savings and planning benefits as part of their recruitment strategy. Even with some uncertainty surrounding health care plans in connection with the Patient Protection and Affordable Care Act, HR professionals should view this benefit, if offered at their employer, as a valuable tool for attracting workers. • Several studies have shown that members of the Millennial generation, or those born between 1982 and 2002, place high value on flexible work schedules and managing their own time. Many HR professionals have recognized this trend: More than half of respondents (55%) leveraged flexible working benefits to highly skilled employees in 2013, compared with 33% a year ago. If this benefit is offered at their employer, HR professionals should highlight this aspect of their overall benefit plans as a tool to attract younger, talented workers to their organizations. State of Employee Benefits in the Workplace—Leveraging Benefits to Recruit Employees ©SHRM 2013 6
7.
Leveraging Benefits to
Recruit Employees at All Levels of the Organization State of Employee Benefits in the Workplace—Leveraging Benefits to Recruit Employees ©SHRM 2013 7
8.
Over the past
12 months, has your organization had difficulty recruiting employees at all levels of the organization? 26% Yes 23% 2013 (n = 351) 2012 (n = 394) 74% No 77% Note: Respondents who answered “not sure” were excluded for this analysis. State of Employee Benefits in the Workplace—Leveraging Benefits to Recruit Employees ©SHRM 2013 8
9.
Over the past
12 months, has your organization leveraged your benefits program to recruit employees at all levels of the organization? 26% Yes 29% 2013 (n = 341) 74% No 71% Note: Respondents who answered “not sure” were excluded from this analysis. State of Employee Benefits in the Workplace—Leveraging Benefits to Recruit Employees ©SHRM 2013 9
10.
Which of the
following benefits has your organization leveraged to recruit employees at all levels within your organization? 81% 80% Health care Retirement savings and planning 70% 63% 50% Leave benefits 36% Professional and career development… 45% 31% Flexible working benefits 43% Housing and relocation benefits 2012 (n = 108) 30% Preventive health and wellness Family-friendly benefits 2013 (n = 88) 33% 29% 33% 27% 24% 19% Note: Only respondents whose organizations leveraged their benefits program to recruit employees at all levels within the organization were asked this question. Respondents who answered “not sure” 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 Recruit Employees ©SHRM 2013 10
11.
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 recruit all levels of employees? Retirement savings and planning 35% Health care 63% Preventive health and wellness 52% Family-friendly benefits 50% Housing and relocation benefits 11% 1% 49% 1% 67% 71% Increase in importance 4% 47% 30% Leave benefits 2% 40% 56% Professional and career development benefits 0% 39% 59% Flexible working benefits 1% 37% 64% Remain the same 4% 18% Decrease in importance Note: n = 65-88. Only respondents whose organizations leveraged their benefits program to recruit employees at all levels within the organization were asked this question. Respondents who answered “not sure” were excluded from this analysis. Percentages may not equal 100% due to rounding. State of Employee Benefits in the Workplace—Leveraging Benefits to Recruit Employees ©SHRM 2013 11
12.
Leveraging Benefits to
Recruit Highly Skilled Employees State of Employee Benefits in the Workplace—Leveraging Benefits to Recruit Employees ©SHRM 2013 12
13.
Over the past
12 months, has your organization had difficulty recruiting highly skilled employees? 50% Yes 49% 2013 (n = 353) 2012 (n = 400) 50% No 52% Note: Respondents who answered “not sure” were excluded for this analysis. Percentages may not total 100% due to rounding. State of Employee Benefits in the Workplace—Leveraging Benefits to Recruit Employees ©SHRM 2013 13
14.
Over the past
12 months, has your organization leveraged your benefits program to recruit highly skilled employees? 30% Yes 31% 2013 (n = 343) 2012 (n = 379) 70% No 69% Note: Respondents who answered “not sure” were excluded for this analysis. State of Employee Benefits in the Workplace—Leveraging Benefits to Recruit Employees ©SHRM 2013 14
15.
Which of the
following benefits has your organization leveraged to recruit highly skilled employees? 70% Health care 75% 61% 58% Retirement savings and planning 55% Flexible working benefits 33% 46% Leave benefits 34% 41% 41% Professional and career development benefits Preventive health and wellness 2012 (n = 116) 35% Family-friendly benefits Housing and relocation benefits 2013 (n = 104) 28% 33% 23% 25% 24% Note: Only respondents whose organizations leveraged their benefits program to recruit highly skilled employees were asked this question. Respondents who answered “not sure” 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 Recruit Employees ©SHRM 2013 15
16.
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 recruit highly skilled employees? Retirement savings and planning 30% 70% Health care 66% Flexible working benefits 65% Professional and career development benefits Increase in importance 1% 45% 0% 51% 38% 12% 2% 43% 47% Leave benefits 1% 33% 55% Preventive health and wellness Housing and relocation benefits 33% 56% Family-friendly benefits 0% 2% 1% 61% 13% 75% Remain the same Decrease in importance Note: n = 77-100. Only respondents whose organizations leveraged their benefits program to recruit highly skilled employees were asked this question. Respondents who answered “not sure” were excluded from this analysis. State of Employee Benefits in the Workplace—Leveraging Benefits to Recruit Employees ©SHRM 2013 16
17.
Organization Demographics State of
Employee Benefits in the Workplace—Leveraging Benefits to Recruit Employees ©SHRM 2013 17
18.
Demographics: Organization Staff
Size 1 to 99 employees 33% 100 to 499 employees 32% 500 to 2,499 employees 17% 2,500 to 24,999 employees 25,000 or more employees 12% 6% n = 363 State of Employee Benefits in the Workplace—Leveraging Benefits to Recruit Employees ©SHRM 2013 18
19.
Demographics: Organization Sector Privately
owned for-profit 51% Nonprofit organization 24% Publicly owned for-profit 12% Government sector 11% Other 2% n = 377 State of Employee Benefits in the Workplace—Leveraging Benefits to Recruit Employees ©SHRM 2013 19
20.
Demographics: Organization Industry Professional,
scientific and technical services Health care and social assistance Manufacturing Government agencies Finance and insurance Educational services Religious, grantmaking, civic, professional and similar organizations Accommodation and food services Administrative and support and waste management and remediation services Construction Mining Transportation and warehousing Arts, entertainment and recreation Information Retail trade Real estate and rental and leasing Repair and maintenance Utilities Whole trade Agriculture, forestry, fishing and hunting Personal and laundry services Other Percentage 21% 17% 15% 12% 10% 9% 5% 4% 4% 4% 4% 4% 3% 3% 3% 2% 2% 2% 2% 1% 1% 7% Note: n = 375. Percentages do not equal 100% due to multiple response options. State of Employee Benefits in the Workplace—Leveraging Benefits to Recruit Employees ©SHRM 2013 20
21.
Demographics: Other Is your
organization a single-unit organization or a multiunit organization? Does your organization have U.S.based operations (business units) only, or does it operate multinationally? U.S.-based operations only 80% Multinational operations 20% n = 381 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% n = 381 What is the HR department/function for which you responded throughout this survey? For multi-unit organizations, are HR policies and practices determined by the multi-unit headquarters, by each work location or by both? Corporate (company-wide) 73% Multi-unit headquarters determines HR policies and practices. 59% Business unit/division 16% Each work location determines HR policies and practices. 4% Facility/location 11% A combination of both the work location and the multi-unit headquarters determines HR policies and practices. 37% n = 244 n = 244 State of Employee Benefits in the Workplace—Leveraging Benefits to Recruit Employees ©SHRM 2013 21
22.
SHRM Survey Findings:
State of Employee Benefits in the Workplace—Leveraging Benefits to Recruit Employees Survey Methodology • Response rate = 11% • 441 HR professional respondents from a randomly selected sample of SHRM’s membership participated in this survey • Margin of error +/- 5% • Survey fielded May 3-22, 2013 State of Employee Benefits in the Workplace—Leveraging Benefits to Recruit Employees ©SHRM 2013 22
23.
Additional SHRM Resources •
SHRM Survey Findings: The Ongoing Impact of the Recession—Global Competition and Hiring Strategies • SHRM Survey Findings: The Ongoing Impact of the Recession—Recruiting and Skill Gaps • SHRM Labor Market & Economic Data: SHRM Economic and Employment Reports • Staffing Management Resource Page • Recruiting Internally and Externally Toolkit State of Employee Benefits in the Workplace—Leveraging Benefits to Recruit Employees ©SHRM 2013 23
24.
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 Project contributors: Alexander Alonso, Ph.D., SPHR, vice president, SHRM Research Evren Esen, manager, Survey Research Center, SHRM Research Copy editor: Katya Scanlan, SHRM Knowledge Center State of Employee Benefits in the Workplace—Leveraging Benefits to Recruit Employees ©SHRM 2013 24
25.
About SHRM The Society
for Human Resource Management (SHRM) is the world’s largest association devoted to human resource management. Representing more than 250,000 members in over 140 countries, the Society serves the needs of HR professionals and advances the interests of the HR profession. Founded in 1948, SHRM has more than 575 affiliated chapters within the United States and subsidiary offices in China, India and United Arab Emirates. State of Employee Benefits in the Workplace—Leveraging Benefits to Recruit Employees ©SHRM 2013 25
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