1. SHRM Survey Findings: Employee Benefits in California—Leveraging Benefits to Recruit Employees April 23, 2014

2. This is part five of a series of SHRM survey findings examining employee benefits in the workplace of California organizations. The following topics are included in the six-part series titled Employee Benefits in California:  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 Employee Benefits in California—Leveraging Benefits to Recruit Employees ©SHRM 20142 Introduction

3. For the purpose of this survey, the term highly skilled employees is defined as employees with skills that are critical to the short- and long-term success of their operating unit or the organization. Employee Benefits in California—Leveraging Benefits to Recruit Employees ©SHRM 20143 Definition

4. Leveraging Benefits to Recruit Employees at All Levels of the Organization Do organizations leverage their benefits program to recruit employees? Thirty percent of organizations in California reported having difficulty recruiting employees; one- third (33%) indicated leveraging their benefits program to recruit employees. What benefits offerings have been leveraged to recruit employees? Similar to the overall findings, health care (85%) and retirement savings and planning (61%) still remain the top two benefits that organizations in California most frequently leverage to recruit employees. These benefits are followed by flexible working benefits (39%), leave benefits (38%), and professional and career development benefits (37%). 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 (69%), health care benefits (62%), and flexible working benefits (62%) are the benefits that will increase in importance the most with respect to recruiting employees in California. Employee Benefits in California—Leveraging Benefits to Recruit Employees ©SHRM 20144 Key Findings for Recruiting Employees at All Levels California

5. Leveraging Benefits to Recruit Highly Skilled Employees Are organizations leveraging their benefits program to recruit highly skilled employees? Although more than one-half (54%) of organizations in California indicated having difficulty in recruiting highly skilled employees, only 35% reported leveraging their benefits program to recruit these applicants. What benefits offerings have been leveraged to recruit highly skilled employees? Health care (73%) was the benefit most frequently leveraged to recruit these employees in California. Compared to the overall findings, many benefits were leveraged less frequently by organizations in California, with the largest difference of 15 percentage points for flexible working benefits (40% in California, 55% nationally). 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 in California organizations indicated that retirement savings and planning benefits (70%) and heath care (63%) would be the most important benefits to leverage during recruitment. Employee Benefits in California—Leveraging Benefits to Recruit Employees ©SHRM 20145 Key Findings for Recruiting Highly Skilled Employees California

6. California organizations use benefits as a recruitment tool at a higher rate than the rest of the United States (33%, compared with 26% nationally). Those are not significant rates, but 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 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: 40% of California organizations and 55% of organizations nationally leveraged flexible working benefits to recruit highly skilled employees in 2013. If this benefit is offered at their employer, HR professionals should highlight this aspect of their overall benefits plans as a tool to attract younger, talented workers to their organizations. Employee Benefits in California—Leveraging Benefits to Recruit Employees ©SHRM 20146 What do these findings mean for the HR profession?

7. Leveraging Benefits to Recruit Employees at All Levels of the Organization Employee Benefits in California—Leveraging Benefits to Recruit Employees ©SHRM 20147

8. Over the past 12 months, has your organization had difficulty recruiting employees at all levels of the organization? Employee Benefits in California—Leveraging Benefits to Recruit Employees ©SHRM 20148 Note: Respondents who answered “not sure” were excluded from this analysis.

9. Over the past 12 months, has your organization leveraged your benefits program to recruit employees at all levels of the organization? Employee Benefits in California—Leveraging Benefits to Recruit Employees ©SHRM 20149 Note: Respondents who answered “not sure” were excluded from this analysis.

10. Which of the following benefits has your organization leveraged to recruit employees at all levels within your organization? Employee Benefits in California—Leveraging Benefits to Recruit Employees ©SHRM 201410 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.

11. 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? Employee Benefits in California—Leveraging Benefits to Recruit Employees ©SHRM 201411 Note: n = 76-94. 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.

12. Leveraging Benefits to Recruit Highly Skilled Employees Employee Benefits in California—Leveraging Benefits to Recruit Employees ©SHRM 201412

13. Over the past 12 months, has your organization had difficulty recruiting highly skilled employees? Employee Benefits in California—Leveraging Benefits to Recruit Employees ©SHRM 201413 Note: Respondents who answered “not sure” were excluded from this analysis.

14. Over the past 12 months, has your organization leveraged your benefits program to recruit highly skilled employees? Employee Benefits in California—Leveraging Benefits to Recruit Employees ©SHRM 201414 Note: Respondents who answered “not sure” were excluded from this analysis.

15. Employee Benefits in California—Leveraging Benefits to Recruit Employees ©SHRM 201415 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.

16. 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? Employee Benefits in California—Leveraging Benefits to Recruit Employees ©SHRM 201416 Note: n = 83-98. 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 may not equal 100% due to rounding.

17. Demographics Employee Benefits in California—Leveraging Benefits to Recruit Employees ©SHRM 201417

18. Employee Benefits in California—Leveraging Benefits to Recruit Employees ©SHRM 201418 Demographics: Organization Staff Size n = 310

19. Employee Benefits in California—Leveraging Benefits to Recruit Employees ©SHRM 201419 Demographics: Organization Sector Note: n = 322. Percentages do not equal 100% due to rounding.

20. Percentage Professional, scientific and technical services24% Health care and social assistance13% Manufacturing12% Finance and insurance10% Government agencies8% Educational services8% Transportation and warehousing7% Retail trade7% Whole trade6% Real estate and rental and leasing5% Accommodation and food services4% Administrative and support and waste management and remediation services4% Construction4% Information4% Utilities4% Religious, grantmaking, civic, professional and similar organizations3% Mining2% Arts, entertainment and recreation2% Repair and maintenance2% Agriculture, forestry, fishing and hunting2% Personal and laundry services1% Other9% 20Employee Benefits in California—Leveraging Benefits to Recruit Employees ©SHRM 2014 Demographics: Organization Industry Note: n = 328. Percentages do not equal 100% due to multiple response options.

21. Employee Benefits in California—Leveraging Benefits to Recruit Employees ©SHRM 201421 Demographics: Other U.S.-based operations only79% Multinational operations21% Single-unit organization: An organization in which the location and the organization are one and the same. 30% Multi-unit organization: An organization that has more than one location. 70% Multi-unit headquarters determines HR policies and practices. 59% 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. 37% 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 = 324 n = 325 Note: n = 234. Percentages do not equal 100% due to rounding. Corporate (company-wide)78% Business unit/division15% Facility/location16% Note: n = 234. Percentages do not equal 100% due to rounding. What is the HR department/function for which you responded throughout this survey?

22. SHRM Survey Findings: Employee Benefits in California— Leveraging Benefits to Recruit Employees Response rate = 13% 373 HR professional respondents in California organizations from a randomly selected sample of SHRM’s membership participated in this survey Margin of error +/- 5% Survey fielded May 3 - June 7, 2013 Survey Methodology Employee Benefits in California—Leveraging Benefits to Recruit Employees ©SHRM 201422

23. SHRM Research Findings: State of Employee Benefits in the Workplace—Leveraging benefits to recruit employees SHRM Research Findings: State of Employee Benefits in the Workplace—Leveraging benefits to recruit employees SHRM Research Findings: The Ongoing Impact of the Recession—California Recruiting and Skill Gaps SHRM Research Findings: The Ongoing Impact of the Recession—California Recruiting and Skill Gaps SHRM Research Findings: Employee Benefits Landscape in California California Resources Page Managing the Hiring Process in California Benefits Underused to Recruit, Retain, SHRM Finds 23 Additional SHRM Resources Employee Benefits in California—Leveraging Benefits to Recruit Employees ©SHRM 2014

24. About SHRM Research 24 For more survey/poll findings, visit www.shrm.org/surveyswww.shrm.org/surveys For more information about SHRM’s Customized Research Services, visit www.shrm.org/customizedresearchwww.shrm.org/customizedresearch Follow us on Twitter @SHRM_Research@SHRM_Research Project leaders: Christina Lee, researcher, SHRM Research Yan Dong, SHRM Research Project contributors: Alexander Alonso, Ph.D., SPHR, vice president, SHRM Research Evren Esen, director, Survey Research Center, SHRM Research Copy editor: Katya Scanlan, SHRM Knowledge Center Employee Benefits in California—Leveraging Benefits to Recruit Employees ©SHRM 2014

25. About SHRM Founded in 1948, the Society for Human Resource Management (SHRM) is the world’s largest HR membership organization devoted to human resource management. Representing more than 275,000 members in over 160 countries, the Society is the leading provider of resources to serve the needs of HR professionals and advance the professional practice of human resource management. SHRM has more than 575 affiliated chapters within the United States and subsidiary offices in China, India and United Arab Emirates. Visit us at shrm.org.shrm.org 25Employee Benefits in California—Leveraging Benefits to Recruit Employees ©SHRM 2014