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SHRM Survey Findings: State of Employee Benefits in the Workplace—Communicating Benefits
January 10, 2013
• This is part six of a series of SHRM surveys examining the state of employee benefits in the workplace.
• The following topics are included in this six-part series:
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
Introduction
2State of Employee Benefits in the Workplace—Communicating Benefits ©SHRM 2012
• How knowledgeable are employees about their employer-sponsored benefits? The majority (86%) of organizations reported their employees are “very knowledgeable” or “somewhat knowledgeable” of the employer-sponsored benefits available to them.
• Are organizations effective in informing employees about their benefits? Roughly three-fourths (77%) of organizations “strongly agree” or “somewhat agree” with the statement “My organization’s employee benefits communications efforts are very effective in informing employees about their benefits.” However, only about one-quarter (22%) of organizations had an employee benefits communications budget in fiscal year 2011.
• What are top employee benefits communications methods organizations use? The top three communications methods used by organizations were online or paper enrollment materials (84%), group employee benefits communications with a representative from his or her organization (65%), and one-to-one employee benefits counseling with a representative from his or her organization (51%).
Key Findings
3State of Employee Benefits in the Workplace—Communicating Benefits ©SHRM 2012
• Are organizations using social media as a platform in their employee benefits communications efforts? Very few organizations are using social media in their communication efforts. Overall, 4% of organizations reported using social media. Among organizations not using social media in their employee benefits communications efforts, 8% of organizations indicated they plan to start using social media within the next 12 months.
Key Findings
4State of Employee Benefits in the Workplace—Communicating Benefits ©SHRM 2012
Focus and Knowledge of Benefits
Very knowl-edgeable
Somewhat knowledgeable
Not very knowledgeable
Not at all knowledgeable
14%
72%
14%
0%
6
Overall, how knowledgeable are your employees about the employer-sponsored benefits available to them?
Note: n = 433. Respondents who answered “not sure” were excluded from this analysis.
State of Employee Benefits in the Workplace—Communicating Benefits ©SHRM 2012
Employee surveys
Interactions with HR
Employee focus group
Intranet use
Employee meetings
Other
24%
17%
14%
12%
4%
2%
7
How does your organization determine the knowledge level of employees about the employer-sponsored benefits available to them?
Note: n = 444. Percentages do not equal 100% due to multiple response options.
State of Employee Benefits in the Workplace—Communicating Benefits ©SHRM 2012
Health care
Leave benefits
Retirement savings and planning
Family-friendly benefits
Flexible working benefits
Preventive health and wellness
Professional and career development benefits
Housing and relocation benefits
Other
84%
4%
4%
2%
2%
2%
2%
0%
0%
8
Which benefit from your organization’s benefits package is the one that is most important to the majority (more than half) of employees?
Note: n = 425. Respondents who answered “not sure” were excluded from this analysis.
State of Employee Benefits in the Workplace—Communicating Benefits ©SHRM 2012
Health care
Flexible working benefits
Retirement savings and planning
Preventive health and wellness
Family-friendly benefits
Professional and career development benefits
Leave benefits
Housing and relocation benefits
68%
9%
9%
5%
3%
3%
2%
0%
9
In three to five years, which benefit from your organization’s benefits package do you think will be the one that is most important to your employees?
Note: n = 416. Respondents who answered “not sure” were excluded from this analysis. Percentages do not total 100% due to rounding.
State of Employee Benefits in the Workplace—Communicating Benefits ©SHRM 2012
Communicating Benefits
Strongly agree
Somewhat agree
Somewhat disagree
Strongly disagree
20%
57%
18%
5%
11
How strongly do you agree or disagree with this statement, “My organization’s employee benefits communications efforts are very effective in informing employees about their benefits.”
Note: n = 439. Respondents who answered “not sure” were excluded from this analysis.
State of Employee Benefits in the Workplace—Communicating Benefits ©SHRM 2012
Yes
No
22%
78%
12
Did your organization have an employee benefits communications budget in fiscal year 2011?
Note: n = 467. Respondents who answered “not sure” were excluded from this analysis.
State of Employee Benefits in the Workplace—Communicating Benefits ©SHRM 2012
Remained the same in
2012
Increased in 2012
Decreased in 2012
There is no budget in
2012
67%
23%
9%
1%
13
Did your organization’s fiscal year 2012 employee benefits communications budget increase, decrease or remain the same when compared with the fiscal year 2011employee benefits communications budget?
Note: n = 91. Organizations that did not have an employee benefits communication budget in fiscal year 2011 were excluded from this analysis.
State of Employee Benefits in the Workplace—Communicating Benefits ©SHRM 2012
Yes
No
63%
38%
14
Within the last 12 months, did your organization make any changes to your employee benefits communication materials?
Note: n = 432. Respondents who answered “not sure” were excluded from this analysis. Percentages do not total 100% due to rounding.
State of Employee Benefits in the Workplace—Communicating Benefits ©SHRM 2012
15
Which of the following employee benefits communications methods does your organization use?
Note: n = 447. Respondents who answered “not sure” were excluded from this analysis. Percentages do not total 100% due to multiple response options.
State of Employee Benefits in the Workplace—Communicating Benefits ©SHRM 2012
Percentage
Enrollment materials (online or paper) 84%
Group employee benefits communications with an organizational representative
65%
One-to-one employee benefits counseling with an organizational representative
51%
Intranet 48%
Direct mail to home/residence 41%
Newsletters (online or paper) 39%
Benefit fairs 26%
Virtual education 13%
Social media 4%
Group employee benefits communications with your vendor 3%
Other 2%
Yes
No
Not sure
8%
60%
33%
16
Within the next 12 months, does your organization plan to using social media as an employee benefits communications tool?
Note: n = 429. Organizations that did not use social media as an employee benefits communications method were excluded from this analysis. Percentages do not total 100% due to rounding.
State of Employee Benefits in the Workplace—Communicating Benefits ©SHRM 2012
State of Employee Benefits in the Workplace—Communicating Benefits ©SHRM 2012 17
Organization Demographics
1 to 99 employees
100 to 499 employees
500 to 2,499 employees
2,500 to 24,999 employees
25,000 or more employees
23%
39%
22%
13%
3%
18
Demographics: Organization Staff Size
n = 447
State of Employee Benefits in the Workplace—Communicating Benefits ©SHRM 2012
Privately owned for-profit
Nonprofit organization
Publicly owned for-profit
Government sector
51%
22%
19%
8%
19
Demographics: Organization Sector
n = 440
State of Employee Benefits in the Workplace—Communicating Benefits ©SHRM 2012
PercentageHealth care and social assistance 19%Manufacturing 19%Professional, scientific and technical services 17%Finance and insurance 11%Government agencies 9%Educational services 7%Retail trade 5%Accommodation and food services 4%Construction 4%Information 4%Religious, grantmaking, civic, professional and similar organizations 4%Transportation and warehousing 4%Whole trade 4%Administrative and support and waste management and remediation services 3%Arts, entertainment and recreation 3%Repair and maintenance 3%Agriculture, forestry, fishing and hunting 2%Mining 2%Real estate and rental and leasing 2%Utilities 2%Personal and laundry services 1%
Demographics: Organization Industry
20
Note: n = 447. Percentages do not equal 100% due to multiple response options.
State of Employee Benefits in the Workplace—Communicating Benefits ©SHRM 2012
21
Demographics: Other
U.S.-based operations only 77%
Multinational operations 23%
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%
Multi-unit headquarters determines HR policies and practices
62%
Each work location determines HR policies and practices
5%
A combination of both the work location and the multi-unit headquarters determines HR policies and practices
34%
Is your organization a single-unit organization or a multi-unit organization?
For multi-unit organizations, are HR policies and practices determined by the multi-unit headquarters, by each work location or by both?
Does your organization have U.S.-based operations (business units) only, or does it operate multinationally?
n = 447 n = 447
Note: n = 286. Percentages do not equal 100% due to rounding.
Corporate (company-wide) 75%
Business unit/division 13%
Facility/location 12%
n = 286
What is the HR department/function for which you responded throughout this survey?
State of Employee Benefits in the Workplace—Communicating Benefits ©SHRM 2012
SHRM Survey Findings: State of Employee Benefits in the Workplace—Communicating Benefits
• Response rate = 12%
• 447 HR professional respondents from a randomly selected sample of SHRM’s membership participated in this survey
• Margin of error +/- 4%
• Survey fielded March 1-April 6, 2012
Survey Methodology
22State of Employee Benefits in the Workplace—Communicating Benefits ©SHRM 2012
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:Shawn Fegley, SPHR, survey research analyst, SHRM ResearchChristina Lee, intern, SHRM Research
Project contributors:Mark Schmit, Ph.D., SPHR, vice president, SHRM ResearchEvren Esen, manager, Survey Research Center, SHRM Research
Copy editor:Katya Scanlan, SHRM Knowledge Center
23State of Employee Benefits in the Workplace—Communicating Benefits ©SHRM 2012