Benefit offerings stabilized in 2012 as the impact of the economic downturn lessened from 2011.
ATLANTA, June 25, 2012 /PRNewswire-USNewswire/ -- More employers are offering benefits that encourage employees to improve their health in 2012, according to a survey released today by the Society for Human Resource Management (SHRM) at its 2012 Annual Conference and Exposition in Atlanta.
Over the last five years, benefits that reward employees for improving their health have jumped – a sign that organizations recognize employees value these benefits and are looking for ways to cut business costs. For example, the percentage of employers offering health and lifestyle coaching jumped from 33 percent in 2008 to 45 percent in 2012, and rewards or bonuses for completing a health and wellness program increased from 23 percent in 2008 to 35 percent in 2012.
"Employers recognize that providing employees with the opportunity to improve their health can increase morale, confidence and productivity," said Mark J. Schmit, vice president of research at SHRM. "Organizations continue to look for ways to manage costs as the economy slowly improves. Benefits that encourage healthier behavior are a cost effective way to keep up employee morale, while healthier employees also help decrease healthcare costs to employers and employees."
SHRM's 2012 Employee Benefits Survey found that, while most employee benefits stabilized this year, 73 percent of HR professionals reported that the economic downtown negatively impacted employee benefit offerings (11 percent to a large extent and 62 percent to some extent). This is more or less the same as in 2011, when 77 percent said the economy negatively affected benefits to some or a large extent.
Because of the economy and recent employment-related legislation, many employers have shifted to benefits that place primary responsibility and control to employees. For example, more employers offer defined contribution retirement-savings plans (92 percent) than defined benefit pension plans (21 percent) in 2012, putting the impetus on employees to manage their own retirement savings instead of relying on employer-provided pensions.
"By shifting primary responsibility in controlling certain healthcare and financial benefits, employers are recognizing a shift in workplace culture," said Schmit. "The new plans allow employees have more control over how they save for retirement and manage their health, while reducing costs for employers. These plans are also more flexible, and thus more attractive, to employees who will likely not spend an entire career with one organization."
Employer spending on benefits remained stable this year with organizations spending, on average, 19 percent of an employee's annual salary on voluntary benefits, 18 percent on mandatory benefits and 10 percent on pay for time employees did not work.
The survey of 550 randomly selected HR professionals examines 297 benefits. Among other findings:
The annual benefits survey asks HR respondents about their organizations' employee benefits in 12 sections: business travel, employee programs and services, family-friendly, financial and compensation, flexible working, healthcare and welfare, housing and relocation, leave, preventive health and wellness, professional and career development, retirement savings and planning, and other.
Colonial Life, based in Columbia, S.C., is the exclusive sponsor of the SHRM 2012 Employee Benefits survey report.
For more information, visit the research section of SHRM.org at http://www.shrm.org/surveys. Follow SHRM Research on Twitter @SHRM_Research.
About the Society for Human Resource Management
The Society for Human Resource Management (SHRM) is the world's largest association devoted to human resource management. Representing about 260,000 members in more than 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 and India. Visit SHRM Online at www.shrm.org and follow us on Twitter @SHRMPress.
About Colonial Life
Colonial Life & Accident Insurance Company is a market leader in providing insurance benefits for employees and their families through their workplace, along with individual benefits education, advanced yet simple-to-use enrollment technology and quality personal service. Colonial Life offers disability, life and supplemental accident and health insurance policies in 49states and the District of Columbia. Similar policies, if approved, are underwritten in New York by a Colonial Life affiliate, The Paul Revere Life Insurance Company, Worcester, Mass. Colonial Life is based in Columbia, S.C., and is a subsidiary of Unum Group, one of the world's leading providers of employee benefits. For more information about Colonial Life's products and services or opportunities with the company, call (803) 798-7000 or visit ColonialLife.com.
SOURCE Society for Human Resource Management (SHRM)