June 25, 2012
--- Because
of the economy and recent employment-related legislation, many employers have
shifted to benefits that place primary responsibility and control on employees,
a survey found. ---
The
Society for Human Resource Management’s (SHRM) 2012 Employee Benefits Survey
found that while most employee benefits stabilized this year, 73% of human
resources professionals reported that the economic downtown negatively impacted
employee benefit offerings (11% to a large extent and 62% to some extent). This
is more or less the same as in 2011, when 77% said the economy negatively
affected benefits to some or a large extent.
More
employers offer defined contribution (DC) retirement savings plans (92%) than
defined benefit (DB) pension plans (21%) this year, putting the impetus on
employees to manage their own retirement savings instead of relying on
employer-provided pensions.
In
addition, over the last five years, benefits that reward employees for improving
their health have jumped. For example, the percentage of employers offering
health and lifestyle coaching jumped from 33% in 2008 to 45% this year, and
rewards or bonuses for completing a health and wellness program increased from
23% in 2008 to 35% this year.
“By
shifting primary responsibility in controlling certain health care and
financial benefits, employers are recognizing a shift in workplace culture,”
said Mark J. Schmit, vice president of research at SHRM. “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.”