SHRM Survey Findings: State of Employee Benefits in the Workplace—Leveraging Benefits to Recruit Employees December 18, 2013

Introduction This is part five of a series of SHRM survey findings examining employee benefits in the workplace. The following topics are included in the six-part series titled State of Employee Benefits in the Workplace: 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 State of Employee Benefits in the Workplace—Leveraging Benefits to Recruit Employees ©SHRM 2013

Definition For the purpose of this survey, highly skilled employees are defined as employees with skills that are critical to the short- and long-term success of their operating unit or the organization. State of Employee Benefits in the Workplace—Leveraging Benefits to Recruit Employees ©SHRM 2013

Key Findings for Recruiting Employees at All Levels Leveraging Benefits to Recruit Employees at All Levels of the Organization Do organizations leverage their benefits program to recruit employees? Approximately one-fourth (26%) of organizations reported leveraging their benefits program to recruit employees. What benefits offerings have been leveraged to recruit employees? Health care (81%) and retirement savings and planning (70%) still remain the top two benefits that organizations most frequently leverage to recruit employees. Compared to 2012, however, all benefits were leveraged more often in 2013, with the largest difference of 14 percentage points for leave benefits and professional and career development benefits. What benefits offerings will increase in importance to help recruit employees in the next three to five years? Organizations indicated that retirement savings and planning benefits (64%) and health care benefits (63%) were the benefits that would increase in importance the most with respect to recruiting employees. State of Employee Benefits in the Workplace—Leveraging Benefits to Recruit Employees ©SHRM 2013

Key Findings for Recruiting Highly Skilled Employees Leveraging Benefits to Recruit Highly Skilled Employees Are organizations leveraging their benefits program to recruit highly skilled employees? Although one-half (50%) of organizations indicated having difficulty in recruiting highly skilled employees, only 30% of organizations reported leveraging their benefits program to recruit these applicants. What benefits offerings have been leveraged to recruit highly skilled employees? Health care (70%) and retirement savings and planning (61%) were the benefits most frequently leveraged to recruit these employees. Compared to 2012, the largest increases in frequency were flexible working benefits (33% to 55%) and leave benefits (34% to 46%). In the next three to five years, what benefits offerings will increase in importance to help organizations recruit highly skilled employees? In 2013, HR professionals indicated that retirement savings and planning benefits (70%) would be the most important benefit to leverage during recruit. Health care dropped to the No. 2 position, falling from 75% to 66%. State of Employee Benefits in the Workplace—Leveraging Benefits to Recruit Employees ©SHRM 2013

What do these findings mean for the HR profession? About one in four (26%) HR professionals use benefits as a recruitment tool. Though not a significant number, many recruiters now advocate using a “total rewards” approach to attracting new employees, and they encourage leveraging an employer’s benefits package as part of that strategy. HR professionals cannot always use higher salaries as a draw for new talent because wage growth has been very weak in the post-recession economy. With medical costs on the rise and many workers unprepared financially for retirement, HR professionals should consider leveraging health care benefits and retirement savings and planning benefits as part of their recruitment strategy. Even with some uncertainty surrounding health care plans in connection with the Patient Protection and Affordable Care Act, HR professionals should view this benefit, if offered at their employer, as a valuable tool for attracting workers. Several studies have shown that members of the Millennial generation, or those born between 1982 and 2002, place high value on flexible work schedules and managing their own time. Many HR professionals have recognized this trend: More than half of respondents (55%) leveraged flexible working benefits to highly skilled employees in 2013, compared with 33% a year ago. If this benefit is offered at their employer, HR professionals should highlight this aspect of their overall benefit plans as a tool to attract younger, talented workers to their organizations. State of Employee Benefits in the Workplace—Leveraging Benefits to Recruit Employees ©SHRM 2013

Leveraging Benefits to Recruit Employees at All Levels of the Organization State of Employee Benefits in the Workplace—Leveraging Benefits to Recruit Employees ©SHRM 2013

Over the past 12 months, has your organization had difficulty recruiting employees at all levels of the organization? Note: Respondents who answered “not sure” were excluded for this analysis. State of Employee Benefits in the Workplace—Leveraging Benefits to Recruit Employees ©SHRM 2013

Over the past 12 months, has your organization leveraged your benefits program to recruit employees at all levels of the organization? Note: Respondents who answered “not sure” were excluded from this analysis. State of Employee Benefits in the Workplace—Leveraging Benefits to Recruit Employees ©SHRM 2013

Which of the following benefits has your organization leveraged to recruit employees at all levels within your organization? Note: Only respondents whose organizations leveraged their benefits program to recruit employees at all levels within the organization were asked this question. Respondents who answered “not sure” were excluded from this analysis. Percentages do not equal 100% due to multiple response options. State of Employee Benefits in the Workplace—Leveraging Benefits to Recruit Employees ©SHRM 2013

Within the next three to five years, what benefits offerings will increase, remain the same or decrease in importance in your organization’s efforts to recruit all levels of employees? Note: n = 65-88. Only respondents whose organizations leveraged their benefits program to recruit employees at all levels within the organization were asked this question. Respondents who answered “not sure” were excluded from this analysis. Percentages may not equal 100% due to rounding. State of Employee Benefits in the Workplace—Leveraging Benefits to Recruit Employees ©SHRM 2013

Leveraging Benefits to Recruit Highly Skilled Employees State of Employee Benefits in the Workplace—Leveraging Benefits to Recruit Employees ©SHRM 2013

Over the past 12 months, has your organization had difficulty recruiting highly skilled employees? Note: Respondents who answered “not sure” were excluded for this analysis. Percentages may not total 100% due to rounding. State of Employee Benefits in the Workplace—Leveraging Benefits to Recruit Employees ©SHRM 2013

Over the past 12 months, has your organization leveraged your benefits program to recruit highly skilled employees? Note: Respondents who answered “not sure” were excluded for this analysis. State of Employee Benefits in the Workplace—Leveraging Benefits to Recruit Employees ©SHRM 2013

Which of the following benefits has your organization leveraged to recruit highly skilled employees? Note: Only respondents whose organizations leveraged their benefits program to recruit highly skilled employees were asked this question. Respondents who answered “not sure” were excluded from this analysis. Percentages do not equal 100% due to multiple response options. State of Employee Benefits in the Workplace—Leveraging Benefits to Recruit Employees ©SHRM 2013

Within the next three to five years, what benefits offerings will increase, remain the same or decrease in importance in your organization’s efforts to recruit highly skilled employees? Note: n = 77-100. Only respondents whose organizations leveraged their benefits program to recruit highly skilled employees were asked this question. Respondents who answered “not sure” were excluded from this analysis. State of Employee Benefits in the Workplace—Leveraging Benefits to Recruit Employees ©SHRM 2013

Organization Demographics State of Employee Benefits in the Workplace—Leveraging Benefits to Recruit Employees ©SHRM 2013

Demographics: Organization Staff Size State of Employee Benefits in the Workplace—Leveraging Benefits to Recruit Employees ©SHRM 2013

Demographics: Organization Sector State of Employee Benefits in the Workplace—Leveraging Benefits to Recruit Employees ©SHRM 2013

Demographics: Organization Industry Percentage Professional, scientific and technical services 21% Health care and social assistance 17% Manufacturing 15% Government agencies 12% Finance and insurance 10% Educational services 9% Religious, grantmaking, civic, professional and similar organizations 5% Accommodation and food services 4% Administrative and support and waste management and remediation services Construction Mining Transportation and warehousing Arts, entertainment and recreation 3% Information Retail trade Real estate and rental and leasing 2% Repair and maintenance Utilities Whole trade Agriculture, forestry, fishing and hunting 1% Personal and laundry services Other 7% Note: n = 375. Percentages do not equal 100% due to multiple response options. State of Employee Benefits in the Workplace—Leveraging Benefits to Recruit Employees ©SHRM 2013

Demographics: Other Is your organization a single-unit organization or a multi-unit organization? Does your organization have U.S.-based operations (business units) only, or does it operate multinationally? 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% U.S.-based operations only 80% Multinational operations 20% n = 381 n = 381 What is the HR department/function for which you responded throughout this survey? For multi-unit organizations, are HR policies and practices determined by the multi-unit headquarters, by each work location or by both? Corporate (company-wide) 73% Business unit/division 16% Facility/location 11% Multi-unit headquarters determines HR policies and practices. 59% Each work location determines HR policies and practices. 4% A combination of both the work location and the multi-unit headquarters determines HR policies and practices. 37% n = 244 n = 244 State of Employee Benefits in the Workplace—Leveraging Benefits to Recruit Employees ©SHRM 2013

SHRM Survey Findings: State of Employee Benefits in the Workplace—Leveraging Benefits to Recruit Employees Survey Methodology Response rate = 11% 441 HR professional respondents from a randomly selected sample of SHRM’s membership participated in this survey Margin of error +/- 5% Survey fielded May 3-22, 2013 State of Employee Benefits in the Workplace—Leveraging Benefits to Recruit Employees ©SHRM 2013

Additional SHRM Resources SHRM Survey Findings: The Ongoing Impact of the Recession—Global Competition and Hiring Strategies SHRM Survey Findings: The Ongoing Impact of the Recession—Recruiting and Skill Gaps SHRM Labor Market & Economic Data: SHRM Economic and Employment Reports Staffing Management Resource Page Recruiting Internally and Externally Toolkit State of Employee Benefits in the Workplace—Leveraging Benefits to Recruit Employees ©SHRM 2013

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: Christina Lee, researcher, SHRM Research Project contributors: Alexander Alonso, Ph.D., SPHR, vice president, SHRM Research Evren Esen, manager, Survey Research Center, SHRM Research Copy editor: Katya Scanlan, SHRM Knowledge Center State of Employee Benefits in the Workplace—Leveraging Benefits to Recruit Employees ©SHRM 2013

About SHRM The Society for Human Resource Management (SHRM) is the world’s largest association devoted to human resource management. Representing more than 250,000 members in over 140 countries, the Society serves the needs of HR professionals and advances the interests of the HR profession. Founded in 1948, SHRM has more than 575 affiliated chapters within the United States and subsidiary offices in China, India and United Arab Emirates. State of Employee Benefits in the Workplace—Leveraging Benefits to Recruit Employees ©SHRM 2013