Forum - October 2010

their organization’s employee benefit offerings “to some extent” over the past year, according to the SHRM 2010 Employee Benefits Research Report. Released this summer, the report shows downward trends — “some significant,” according to SHRM — in several employee benefit categories over the past five years, from 2006 to 2010.

“Although the recession has presented
challenges in the continued support of
some employee benefits, some organiza-
tions are finding creative ways to replace
the more costly benefits with alternative,
less costly, family-friendly benefits,” says
SHRM Director of Research Mark Schmit.
“These progressive companies will likely
fare better in retaining key talent as
employment opportunities increase post-
recession.”
Hardest hit, according to SHRM, have
been housing and relocation benefits.
“Location visit assistance” is provided
by 20 percent of companies this year,
compared with 36 percent last year, while
“rental assistance” is provided by 3 per-
cent of companies this year, down from
12 percent last year. Since 2006, rental

assistance benefits have declined 19 percent and location visit assistance benefits 20 percent.

Other key findings, according to SHRM:

• Business travel: Although only 4 percent of organizations during the past year have cut business travel benefits allowing employees to keep frequent flier miles, hotel points, etc., 24 percent of employers during the last five years have cut paid long-distance call benefits, 8 percent travel accident insurance benefits and 8 percent paid dry cleaning benefits.

• Retirement: Since 2006, the number of organizations offering “individual investment advice” has dropped from 48 percent to 40 percent, “retirement planning services” from 52 percent to

39 percent, and “traditional defined benefit pension plans” from 48 percent to 27 percent.

• Health care: While “rehabilitation assistance” and “mental health coverage” benefits have increased from 37 percent and 80 percent, respectively, in 2009 to 45 percent and 82 percent in 2010, “long-term health care insurance” benefits have decreased from 39 percent to 31 percent during the same period.

• Other benefits: HR professionals report that fewer companies are offering non-cash company-wide performance awards, company-purchased tickets to events, take-your-child-to-work day, holiday parties, company picnics and milestone awards.