Research Provides Insight into U.S. Buying Behaviors and Trends in Employee Benefits
IDC has released a new research study on the market for employee benefits administration in the U.S., which shows that over 70% of all employers - both small and large - are either concerned or very concerned over the ramifications of potential healthcare reform legislation. While concerned with the as-yet-undetermined changes in legislation, the rising costs of providing employees with health and welfare benefits is even more of a concern to buyers, with over 80% reporting it as the top challenge they face. This research also revealed a number of trends including:
Few employers assume the full financial burden of employee benefits with 96% of participating companies offering benefits to which the employer and employee both contribute.
The overwhelming majority of companies plan to keep benefits spending levels the same for the next 12 to 18 months.
Over 70% of all employers, both small and large, are either concerned or very concerned over the ramifications of potential healthcare reform legislation.
Number of Companies Planning to Reverse Salary, Hiring Freezes Jumps Sharply
Approximately half of the companies that froze salaries and hiring in the past year now plan to unfreeze them in the next six months, according to the latest update to an ongoing series of surveys by Watson Wyatt, a global consulting firm. Nevertheless, employers remain concerned about their ability, both currently and in the long run, to attract and retain critical-skill employees. Other findings from the survey include:
Thirty-seven percent of companies think their results have already bottomed out, compared to 27 percent in August.
For companies expecting to reinstate their 401(k) or 403(b) match, 70 percent will change it back to the original level. Thirteen percent will reinstate the match at a new, lower level, while 17 percent will vary it by year, based on company profits.
For companies expecting to make offers to new hires, 83 percent will do so for professional, non-managerial staff, followed by 71 percent for director, manager or middle management positions. Only 47 percent will be hiring for senior management or executive level positions.
Only 37 percent of employers plan to organize a holiday party in 2009, compared with 47 percent that organized one in 2008 and 70 percent in 2007. Two in five (41 percent) that are planning a holiday party have seen their budgets decrease.
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