Business & Finance
Business and Finance
Business and Finance
Tue, April 19, 2011 Recession brought benefits changes, engagement challenges
CHATTANOOGA, Tenn.--([ BUSINESS WIRE ])--As they weathered the tough economy of the past two years, nearly 40 percent of human resources leaders saw changes in their companya™s medical benefits plan design or carrier, according to a [ survey ] conducted by Harvard Business Review Analytic Services and commissioned by Unum (NYSE:UNM), a leading employee benefits provider.
"Their insights into what challenges define their workdays now and in the future are invaluable."
And as businesses rebuild, showing employees they are valued a" while dealing with the impact of health care reform a" will be top challenges, the survey shows.
aHuman resources professionals have been in the trenches as businesses have endured this difficult economic environment,a said Mike Simonds, senior vice president of growth operations for Unum. aTheir insights into what challenges define their workdays now and in the future are invaluable.a
During 2009 and the first half of 2010, HR leaders saw the following changes at their workplaces:
- Thirty-five percent saw a reduction in staff of more than 10 percent at their companies.
- Thirty-six percent saw a shift of benefits costs from employer to employee.
- More than one in four reported a reduction in human resources staff.
Among those who had not already experienced them, many expected to see these changes in the second half of 2010:
- An additional 18 percent expected a change in their companya™s medical benefits plan design or carrier.
- Twenty-two percent more predicted benefits costs would shift from employer to employee.
Top challenges now and in the coming years are managing benefit costs, boosting employee engagement and retaining quality employees, survey respondents said.
Nearly 80 percent said being a company that cares about the well-being of employees is very important to attracting and retaining a quality workforce. And nearly 80 percent agreed that employees are most productive when they feel financially secure.
As companies continually balance the need to manage costs and boost engagement, many are turning to voluntary benefits:
- Nearly 70 percent of human resources leaders said they offer voluntary benefits employees can purchase through the workplace.
- Nearly 70 percent said they view financial protection benefits, such as disability and life insurance, as a very important component of the overall benefits package.
aHR leaders clearly need employee benefits partners to take an active role in helping them balance benefits cost, offer the choices employees want and need, and build a culture that contributes to an engaged workforce,a Simonds said.
Read the full results of the survey [ here ].
About Unum
Unum ([ www.unum.com ]) is one of the leading providers of employee benefits products and services in the United States and the United Kingdom. Through its subsidiaries, Unum Group paid approximately $6 billion in total benefits to customers in 2009.
About Harvard Business Review Analytic Services
Harvard Business Review Analytic Services is an independent, sponsored research unit within Harvard Business Review Group, which conducts research and comparative analysis into timely business and management ideas.
About Harvard Business Review
Harvard Business Review is the leading destination for smart management thinking. Through its flagship magazine, 11 international licensed editions, books from Harvard Business Review Press, and digital content and tools published on HBR.org, Harvard Business Review provides professionals around the world with rigorous insights and best practices to lead themselves and their organizations more effectively and to make a positive impact.
About the survey
Harvard Business Review Analytic Services completed research with 394 individuals who identified themselves as benefits and HR decision makers via an online survey during June and July 2010. Respondents were largely drawn from the list of Harvard Business Review magazine and email newsletter subscribers. Respondents represented a broad cross section of U.S. employers by size and industry.
