SHRM HR Trend Book (2013)

2,876 views
2,802 views

Published on

Published in: Business, Technology
0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
2,876
On SlideShare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
161
Comments
0
Likes
2
Embeds 0
No embeds

No notes for slide

SHRM HR Trend Book (2013)

  1. 1. SPECIAL SUPPLEMENT TO AWARDS & INCENTIVES BENEFITS COMPENSATION EDUCATION,TRAINING & DEVELOPMENT MOBILITY STAFFING MANAGEMENT TECHNOLOGY WORKFORCE TRENDS Trendbook Contents | Zoom in | Zoom out Search Issue | Next PageFor navigation instructions please click here Contents | Zoom in | Zoom out Search Issue | Next PageFor navigation instructions please click here
  2. 2. 2011 U.S. Worksite Sales, LIMRA. Allstate Benefits is the marketing name used by American Heritage Life Insurance Company (Home Office, Jacksonville, FL), a subsidiary of The Allstate Corporation. © 2012 Allstate Insurance Company q q M Mq q M M qM THE WORLD’S NEWSSTAND® Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageHRMagazine q q M Mq q M M qM THE WORLD’S NEWSSTAND® Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageHRMagazine Life Disability Critical Illness Accident allstatebenefits.com Allstate protects employees, too. Surprised?AllstateBenefits isoneofthefastest-growing benefits providers in America today, offering employees the #1 Critical Illness product in the industry. Let a leader in protection, protect your employees, too. Are you in Good Hands ? ® ®
  3. 3. 2013 HR Benchmarks Trendbook • HR Magazine 47 You Can Get There from Here Y ou can’t know which way to go if you don’t know where you are. That’s why strategic HR professionals keep an eye on critical workforce metrics—their own organiza- tion’s and others’. To attract and retain a productive workforce, employers must compete when it comes to benefits, compensation, training, challenging growth opportunities and flexible work arrangements. And it’s not enough to know what others in your industry are doing. After all, you’re competing for the best workers with every employer in your area—and in the world at large. Among the most frequent issues Society for Human Resource Management members research online and ask the Society’s HR knowledge advisors about are benchmark data—how do they compare to other employers? This 2013 HR Benchmarks Trendbook aims to be a concise resource for some commonly needed data. How do your health care benefits and costs measure up? See p. 49. Are you struggling with the same skills shortages as others? See p. 56. How do your cost-per-hire and turnover rates compare? See p. 60. Are you keeping pace with rapidly changing advances in technology? See p. 62. You won’t find all the data you need here, but we’ve provided sources for much more data and detail. We hope these benchmarks help you point the way to get where your organization wants to go. —The editors Contents Awards & Incentives......................................................................48 Benefits.........................................................................................................49 Compensation.......................................................................................54 Education, Training & Development..........................56 Mobility...........................................................................................................58 Staffing Management...................................................................60 Technology.................................................................................................62 Workplace Trends.............................................................................64 See the online version of the 2013 HR Benchmarks Trendbook at www.shrm.org/1212-Benchmarks-Trendbook for links to the resources found in this supplement. HR Magazine’s 2013 HR Benchmarks Trendbook (SSN 1047-3149) is published by the Society for Human Resource Management, 1800 Duke St., Alexandria, VA 22314; (703) 548-3440 ©2012 The following SHRM editors, writers and researchers contributed to the 2013 HR Benchmarks Trendbook: Erin Binney, Jennifer Chinworth, Nancy M. Davis, John Dooney, Evren Esen, Shawn Fegley, Eliza Jacobs, Gretchen Kraft, Dori Meinert, Stephen Miller, Desda Moss, Leon Rubis, John F. Scorza and Justina Victor. SHRM designers were Mari Adams and John R. Anderson Jr. Other contributors include freelance writers Adrienne Fox, Eric Krell, Bill Roberts, Joanne Sammer and Kathryn Tyler. q q M Mq q M M qM THE WORLD’S NEWSSTAND® Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageHRMagazine q q M Mq q M M qM THE WORLD’S NEWSSTAND® Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageHRMagazine
  4. 4. 48 HR Magazine • 2013 HR Benchmarks Trendbook AWARDS & INCENTIVES Link to Engagement Drives Growth for Diverse Incentives A lthough use of rewards and incen- tives in forms other than cash appears to be increasing, the most noteworthy trend in this area may be the expanding definition of rewards. “We think of a reward as anything the organization provides to employees of perceived value,” notes Tom McMullen, reward practice leader for North America at the Hay Group in Chicago. HR professionals are closely monitoring the value of those rewards and incentives, often discovering that they return value to organizations by helping increase employee retention and engagement. The causal links appear to be shaping how HR profes- sionals measure and manage nonfinancial rewards initiatives such as employee recognition programs. They track financial returns from recognition and other awards programs with metrics such as return on investment, turnover, customer retention and employee productivity. In particular, some survey research has shown a return on investment—in the form of reduced health care costs— from wellness programs that feature awards and incentives. In many cases, adding up these numbers yields an interesting conclusion: A number of nonfinancial rewards and incentives that traditionally were considered or dismissed as “soft,” such as internal recognition, can help boost the bottom line. A majority of U.S. and Canadian companies have increased or maintained use of recognition programs to help improve em- ployee retention and employee engagement, according to the results of Mercer’s 2012 Attrac- tion and Retention Survey. These percentages show what portion of 472 responding companies have increased, maintained and reduced recognition programs from 2010 to 2012. These programs include noncash rewards such as spot awards, gift cards, certificates or public acknowledgment. 22% 74% 4% Offered more Remained the same Offered less Prevalence of Employee Recognition Programs By organization size Overall, 76 percent of organizations have an employee recognition program in place; larger organizations are more likely than smaller organizations to have formal programs. Percentage of organizations with recognition programs Number of employees $1 to $3 Decrease in overall health care costs for every dollar spent by most North American employers that analyzed the return on investment from wellness programs. Organizations that found a positive return were more likely to use incentives such as insurance premium reductions. 36.7% of survey respondents that provide incentives for wellness programs offer insurance premium reductions. Nearly 90 percent of the organizations surveyed provide incentives. Source: International Foundation of Employee Benefit Plans survey,2012. Rewards Other Than Cash Prove Popular q q M Mq q M M qM THE WORLD’S NEWSSTAND® Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageHRMagazine q q M Mq q M M qM THE WORLD’S NEWSSTAND® Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageHRMagazine 91%25,000 or more 2,500 to 24,999 500 to 2,499 100 to 499 1 to 99 Recognition Program Return on Investment Only respondents whose companies track the return on employee recognition programs reported. Percentages do not total 100 percent because multiple responses were allowed. Percentage of employers tracking Employee retention 74% Financial results 61 Employee productivity 60 Employee engagement scores 57 Employee absenteeism 28 Customer retention 21 Other 6 15% of companies with recognition programs measure the return on investment of these programs. 77% 73% 65% 72% Source: SHRM Survey Findings: Employee Recognition Programs,Winter 2012. Awards That Encourage Health _______________________________
  5. 5. 2013 HR Benchmarks Trendbook • HR Magazine 49 BENEFITS Benchmarks Document Shared Benefits Costs D uring the past decade, the employee benefits landscape has been transformed by the escalating costs of benefits coupled with legisla- tive changes and new benefits options. Benefits budgets have experienced substantial cuts because of the reces- sion and tepid economic recovery. As a result, employers continue to shift cost accountability and decision-making to employees, as confirmed by the Society for Human Resource Manage- ment’s research and analysis, along with studies by the U.S. government, benefits consultancies and nonprofit organizations. Among the key shifts highlighted by these benchmarks: • A majority of American employers now offer a high-deductible consumer- directed health plan tied to a health savings account, along with tools and information to enable employees to make cost-conscious decisions about the care they choose to receive. • Employers are more likely than not to provide a variety of wellness programs that offer incentives to spur health-promoting behaviors. • The predominant vehicle for retirement savings through the workplace is a defined contribution plan, and automatic employee enrollment in this type of plan is increasingly prevalent. These and other findings reflect the ongoing shift of costs and responsibility to employees, with employer-provided support to help workers navigate an increasingly complex benefits terrain. Private-Sector Employment Costs On average, private-sector employers paid $28.80 in total compensa- tion per hour worked in June.Wages and salaries averaged $20.27 and accounted for 70.4 percent of these costs.The cost of benefits averaged $8.52 and accounted for the remaining 29.6 percent, as detailed below. Wages and salary 70.4% Percentages do not total 100 percent due to rounding. Source: U.S. Bureau of Labor Statistics. Legally required benefits 8.2% Insurance 8.1% Paid leave 6.8% Retirement and savings 3.5% Supplemental pay 2.9% 7%Expected cost increase of employer- sponsored health care benefits in 2013 at the largest U.S. corporations Source: National Business Group on Health. Consumer-Driven Health Plans Now Second Most Common Design Plan type Percentage of employers offering Preferred provider organization 79% Consumer-driven health 58 Health maintenance organization 38 Point of service 15 Source: Aon Hewitt 2012 Health Care Survey. 43% of employers offered health savings accounts in 2012, up from 35 percent in 2011. Source: SHRM 2012 Employee Benefits. q q M Mq q M M qM THE WORLD’S NEWSSTAND® Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageHRMagazine q q M Mq q M M qM THE WORLD’S NEWSSTAND® Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageHRMagazine _______________
  6. 6. BENEFITS 50 HR Magazine • 2013 HR Benchmarks Trendbook Source: U.S. Bureau of Labor Statistics. Retirement and savings benefit costs include defined benefit and defined contribution plans. The sum of the entries does not always equal the total retirement and savings costs due to rounding. Retirement and Savings Benefits Costs Vary by Employer Size In June, average costs in private industry for retirement and savings benefits were $1.02 per hour worked, or 3.5 percent of total compensation. These benefits costs vary by employer size. $2.50 $2.00 $1.50 $1.00 $0.50 $0.00 1 to 99 workers 100 to 499 workers 500 workers or more Retirement, savings Defined benefit Defined contribution 31% 38% Prevalence of Domestic Health Care Coverage Percentage of companies offering Spousal coverage Same-sex domestic partner coverage Opposite-sex domestic partner coverage 96% U.S. Employees’ Share of Health Care Costs Average costs for an employee-only plan Annual in-network deductible $981 Annual out-of-network deductible $1,994 Co-pay for in-network primary care office visits $21 Employers, Employees Share Premium Burden Average share of medical plan premiums paid by employers and employees in private industry. Family coverage 79% 68% Single coverage 21% 32% Employer paid Employee paid Source: U.S. Bureau of Labor Statistics, March. Most Organizations Offer Just One Health Care Plan 1 plan 40% 2 plans 32% 3 or more plans 28% $430Average employer contribution to a monthly health care premium for an employee-only plan 39% of organizations have self-funded health care. Source: SHRM Customized Benchmarking Database, 2012. Source: Fidelity Investments and the National Business Group on Health. $460 Average incentive U.S. companies offered employees to participate in health improvement programs in 2011 $169 Average amount employers spent per employee on health improvement programs in 2011, excluding incentives 0.62 0.23 0.39 1.09 0.44 0.65 2.09 1.00 1.10 Flex delivers consumer-driven, tax-advantaged plans, including FSAs, HRAs, HSAs,Transit and COBRA to employers throughout the US. Flex also offers the InsureXSolutions™ private insurance exchange that utilizes the defined contribution funding model to provide health and retiree benefits. Find out how your employee benefits programs can go further with Flex. Flexible Benefit Service Corporation (Flex) marketing@flexiblebenefit.com 866-472-0882 www.flexiblebenefit.com __________________ q q M Mq q M M qM THE WORLD’S NEWSSTAND® Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageHRMagazine q q M Mq q M M qM THE WORLD’S NEWSSTAND® Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageHRMagazine
  7. 7. q q M Mq q M M qM THE WORLD’S NEWSSTAND® Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageHRMagazine q q M Mq q M M qM THE WORLD’S NEWSSTAND® Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageHRMagazine © 2012 Prudential Financial and its related entities. Group Life and Disability Insurance. Group Insurance benefits are issued by The Prudential Insurance Company of America, 751 Broad Street, Newark, NJ 07102-3777. Prudential, the Prudential logo, the Rock symbol and Bring Your Challenges are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide. *Critical Illness is available to companies with more than 5,000 lives. 0232020-00001-00 Actually, yes—when you consider the possibilities of lower turnover, reduced absence-related costs and increased productivity. And when employees have the protection they need and deserve, you’ll find that they’re more engaged at work. With voluntary benefits from Prudential Group Insurance, you can support your employees on their way to financial wellness by offering Life, Disability and Critical Illness* coverage. They’ll get convenient and affordable solutions from a carrier they know and trust—with little or no cost to you. To learn more, contact Bob Patience, Vice President, Voluntary Benefits at 973-548-6233. Download our white paper “Voluntary Benefits: A Critical Tool for Improving Employees’ Financial Wellness” at prudential.com/group PRUDENTIAL GROUP INSURANCE IS THERE AN ROI TO HAVING FINANCIALLY HEALTHY EMPLOYEES?
  8. 8. 52 HR Magazine • 2013 HR Benchmarks Trendbook BENEFITS Common Retirement Plans and Features Percentage of organizations offering or providing Defined benefit pension plan 23% 401(k), 403(b) or similar defined contribution plan 93 Employer contribution 80 Automatic employee enrollment 40 Source: SHRM Customized Benchmarking Database, 2012. Source: SHRM Customized Benchmarking Database. Health savings account $627 Health reimbursement arrangement $1,935 Employers Support Supplemental Accounts Employer contributions, 2012 Consumer Decision-Support Tools The majority of companies give enrollees of qualified high-deductible health plans that are linked to health savings accounts tools and information to make better informed health care decisions, according to a comprehensive 2012 census of health insurance companies by America’s Health Insurance Plans. Health education information Member access to health savings account information Hospital-specific quality data Personal health record Physician-specific quality data Provider cost information Percentage of companies offering tools 97% 93% 92% 90% 86% 84% q q M Mq q M M qM THE WORLD’S NEWSSTAND® Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageHRMagazine q q M Mq q M M qM THE WORLD’S NEWSSTAND® Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageHRMagazine ________________________
  9. 9. To qualify for the $50 Amazon.com gift card, you must receive a ShareBuilder 401k Cost Comparison report by 12/31/2012 and be a decision-maker for your company’s Advisory services are provided by ShareBuilder Advisors, LLC, an SEC registered investment advisor and a subsidiary of Capital One, N.A. 401(k) plans are: Not FDIC insured · Not Bank guaranteed · May lose value Get a $50 Amazon.com gift card just for checking your 401(k) fees. You can quickly see how your plan stacks up with our online cost comparison tool. Simply grab your Fee Disclosure to download a custom Cost Comparison report. Lower investment expenses can literally save you and your ShareBuilder 401k plans are designed to keep costs low and automatically reduce costs even more as your plan gets bigger. 800-299-2851 or visit: www.401kComparison.com/HR UPSIZE YOUR RETIREMENT ROI DOWNSIZE 401(k) PLAN FEES q q M Mq q M M qM THE WORLD’S NEWSSTAND® Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageHRMagazine q q M Mq q M M qM THE WORLD’S NEWSSTAND® Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageHRMagazine
  10. 10. 54 HR Magazine • 2013 HR Benchmarks Trendbook COMPENSATION Post-Recession Compensation Patterns Emerging From the Data I n most organizations, the recession has significantly affected compensa- tion planning and strategy. In the depth of the recession, employers froze or reduced salary increases and, in some extreme cases, even asked work- ers to take pay cuts to save jobs. Now that the recession has receded but the economy has not yet fully recovered, most companies—though not all—have unfrozen their salary increase budgets, as seen in compen- sation benchmarks. Company leaders, however, may still be looking for the optimal level of compensation spending as a percentage of overall operating expenses. At the same time, they continue to look for ways to reward and differentiate pay for their best performers. For example, even during the depths of the recession, employers maintained their commitment to variable pay and, indeed, increased the percentage of base pay dedicated to this form of compensation. Finally, the data show that companies are looking to shift the executive pay mix to emphasize long-term results and decision-making. 9.2%of companies provided catch-up or remedial salary increases in 2012. Source: Empsight International, 2012 Policies, Practices & Merit Report. Projected Average Base Pay Increases By employee job level Employees at all levels may expect modest pay increases for 2012 and 2013. Executive Salaried Salaried Nonunion Union exempt nonexempt hourly 2012 2.9% 2.8% 2.7% 2.7% 2.5% 2013 3.0 3.0 3.0 2.9 2.6 Source: Aon Hewitt, 2012-2013 Salary Increase Survey. Top Performers Rewarded More The following percentages represent average base salary increases based on employees’ performances: Highest performers Above-average performers Average performers Below-average performers Management, excluding executives 4.8% 3.7% 3.1% 1.4% Exempt, nonmanagement 4.7 3.9 3.2 1.3 Nonexempt, salaried 4.9 4.1 3.7 1.4 Nonexempt, hourly 4.6 3.7 3.6 1.5 Source: Towers Watson, 2012 General Industry Salary Budget Survey-U.S. 1 to 99 100 to 249 250 to 499 500 to 999 1,000 to 2,499 2,500 to 7,499 7,500 or more Salary Costs By organization size Salaries account for a big budget bite. The following percentages represent the average amounts of oper- ating expenses made up by salaries in 2012: Number of employees Source: SHRM Customized Benchmarking Database, 2011. 40% 39% 45% 42% 40% 18% 48% q q M Mq q M M qM THE WORLD’S NEWSSTAND® Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageHRMagazine q q M Mq q M M qM THE WORLD’S NEWSSTAND® Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageHRMagazine _______________________
  11. 11. 2013 HR Benchmarks Trendbook • HR Magazine 55 COMPENSATION Target Bonuses for Nonexecutives By organization size The biggest employers are more generous with variable pay. The following percentages represent the amount of average variable pay as a percentage of base pay in 2012: Number of employees 1 to 99 100 to 249 250 to 499 500 to 999 1,000 to 2,499 2,500 to 7,499 7,500 or more 2.5% 4.0% 3.6% 5.0% 3.9% 13.0% 10.0% Source: SHRM Customized Benchmarking Database, 2011. Short-Term Incentives and Discretionary Bonuses Executives are projected to reap big incentive and bonus awards in 2013.The following percentages represent the amount they are expected to receive as a percentage of total base salary: Short-term Discretionary incentive bonus Executives 40.0% 13.5% Management, excluding executives 19.3 4.0 Exempt, nonmanagement 10.0 3.0 Nonexempt, salaried 5.0 2.5 Nonexempt, hourly 5.0 2.0 Median Size of Signing Bonuses for New College Graduates Bachelor’s degree, nontechnical $4,500 Bachelor’s degree, technical 5,000 Master of Business Administration 10,000 Other master’s degree 6,125 Source: Empsight International, 2012 Policies, Practices & Merit Report. Variable Pay Rising Variable pay for salaried exempt employees, as a percentage of payroll. 2010 2011 2012 2013, projected Source: Aon Hewitt, 2012-2013 Salary Increase Survey. Sample Compensation Across Professions Median annual salaries and total cash compensation for select positions. Title 2011 salary 2012 salary 2011 total cash compensation 2012 total cash compensation Top public relations executive $173,000 $168,500 $204,100 $204,300 Public relations—entry 44,500 44,800 45,100 46,500 Marketing communications group manager 128,300 130,400 147,200 138,000 Marketing communications manager 85,900 82,200 92,100 87,400 Top advertising and sales promotion executive 162,800 180,000 204,600 235,400 Advertising group manager 155,100 144,200 178,500 159,400 General accounting manager 90,000 89,700 96,100 96,000 General accounting—entry 44,900 43,200 45,700 44,200 CFO and top financial officer 308,400 309,800 412,300 402,400 Financial analysis and tax—entry 48,700 47,300 49,800 49,100 Customer service manager 75,500 77,700 80,900 83,400 Customer service—entry 34,000 37,500 34,600 38,700 Logistics group manager 120,200 125,000 138,200 140,400 Logistics manager 86,200 87,400 93,300 91,400 Engineering manager 98,500 99,300 105,300 106,000 Engineering—entry 54,600 57,100 55,600 58,000 Manufacturing operations group manager 130,500 141,000 143,900 158,800 Manufacturing operations manager 84,000 85,800 90,300 92,900 Top sales executive 212,400 230,600 276,000 304,100 Direct sales group manager 137,800 146,800 156,600 165,600 Information technology development manager 139,400 146,600 162,900 162,000 Information technology development—entry 52,000 53,800 52,300 54,000 Source: Towers Watson survey data. Types of Short-Term Incentive Plans The following percentages of organizations surveyed in 2012 offer these short-term incentive plans: Combination companywide incentive with individual performance component.................. 51.7% Companywide incentive (include a profit sharing plan)......................................... 34.2 Individual incentive................................................................. 27.8 Business incentive.................................................................. 24.3 Workgroup or team incentive........................................... 13.3 Source: Buck Consultants, Compensation Planning for 2013. $6.1M Median value of long-term incentives for CEOs at S&P 500 companies in 2011, up from $5.42 million in 2010. Source: Mercer analysis. Source: Towers Watson, 2012 General Industry Salary Budget Survey-U.S. 11.3% 11.6% 12.0% 12.1% q q M Mq q M M qM THE WORLD’S NEWSSTAND® Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageHRMagazine q q M Mq q M M qM THE WORLD’S NEWSSTAND® Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageHRMagazine _______________________
  12. 12. 56 HR Magazine • 2013 HR Benchmarks Trendbook EDUCATION, TRAINING & DEVELOPMENT $52Average cost per training hour in 2011 15.3 hoursAverage formal training hours per learner in 2011, up from 12.75 hours in 2010 2011 Annual Training Budgets By organization size Number of employees 1 to 99 100 to 499 500 to 2,499 2,500 to 24,999 25,000 or more Training Makes Gains T raining departments continue to reclaim budget dollars lost during the Great Recession, with 2011 year-over-year training spending up 9.5 percent to an average of $800 per learner, according to Bersin & Associ- ates, a research firm headquartered in Oakland, Calif. The result? Training bud- gets are now back to 2005 levels. How- ever, employers are focusing on onsite training vs. training delivered through technical schools, community colleges or universities. Tuition reimbursement allotments have decreased by 11 percent from 2011 to 2012, dropping from $5,579 to $4,980 per person, according to the Society for Human Resource Manage- ment’s Human Capital Benchmarking Database—even though average college tuition at four-year colleges increased by 15 percent from the 2008-09 school year to the 2010-11 school year, says the U.S. Department of Education College Affordability and Transparency Center. In addition, Section 127 of the Internal Revenue Code, which allows employees to exclude from income up to $5,250 per year in college educational assistance, is set to expire Dec. 31 unless Congress acts to renew it or make it permanent. Employers continue to explore e-learning options as a way of decreasing the cost per training hour. E-learning has begun to focus more heavily on informal, social learning opportunities—wikis, blogs, social media, chat forums and other collab- orative learning platforms. In 2011, 25 percent of U.S. companies invested in informal learning tools or services, with large companies more than doubling what they spent in 2010 to an average of $40,000, according to Bersin & Associates. Training Spending per Learner $1,000 900 800 700 600 Source: Bersin & Associates/Karen O’Leonard, The Corporate Learning Factbook 2012: Executive Summary. Source: SHRM Survey Findings: Changing Employee Skills and Education Requirements—Training Budgets, Resources and Strategies. Source: Bersin & Associates/Karen O’Leonard,The Corporate Learning Factbook 2012: Executive Summary. $797 $853 $904 $805 $716 $730 $800 2005 201120102009200820072006 $150,000 $200,000 $20,000 $32,500 $75,000 q q M Mq q M M qM THE WORLD’S NEWSSTAND® Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageHRMagazine q q M Mq q M M qM THE WORLD’S NEWSSTAND® Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageHRMagazine
  13. 13. 2013 HR Benchmarks Trendbook • HR Magazine 57 EDUCATION, TRAINING & DEVELOPMENT E-Learning Moves to the Head of the Class A majority of organizations are expanding or planning to expand their use of e-learning. Source: SHRM Workplace Forecast, 2011. No plans to expand 23% Currently expanding 52%Plan to expand 25% Where Employees Receive Training Onsite 81% Employer-provided, offsite 57 Technical or community college 44 College or university 41 Percentages do not total 100 percent due to multiple responses. Source: SHRM Survey Findings: Changing Employee Skills and Educa- tion Requirements—Training Budgets, Resources and Strategies, 2012. Maximum Tuition Reimbursement per Year The maximum reimbursement allowed by employers for tuition/ education expenses per year per employee.These expenses do not include training expenses for seminars and other activities that are not part of a college- or university-level undergraduate or graduate course. 2010 2011 2012 Source: SHRM Human Capital Benchmarking Database. $4,980 $5,579 $4,575 q q M Mq q M M qM THE WORLD’S NEWSSTAND® Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageHRMagazine q q M Mq q M M qM THE WORLD’S NEWSSTAND® Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageHRMagazine ____________ _____________________ Our Graduates are Cockyfor a Reason! Strong relationships with business partners create outstanding internship and job opportunities. World-class faculty includes national and international leaders in the field. If you’ve got what it takes to be an HR leader, a USC MHR degree is a proven fast track to the top of the profession. To learn more about how a USC MHR degree can accelerate your career, visit moore.sc.edu or contact us at gradinfo@moore.sc.edu. MASTER OF HUMAN RESOURCES AT THE DARLA MOORE SCHOOL OF BUSINESS
  14. 14. 58 HR Magazine • 2013 HR Benchmarks Trendbook MOBILITY 57%of multinational companies expect to increase the current number of employees relocated outside their home countries in 2012-13. Mobility Professionals Get Creative N umerous mobility benchmark indicators are rising, offering positive and negative news for human resource professionals. On the plus side, relocation volumes and budgets have resumed growth following a stretch during which many companies cut or froze moves and budgets. On the negative side, more employees are expressing reluc- tance to move. Besides addressing this resistance to relocation, mobility professionals report contending with: • A difficult housing market. • Safety risks to expatriates. • The rising cost of house-hunting trips. Survey research shows that many mobility professionals are getting creative in response to this complex mix of opportunities and challenges. For example, the number of corpo- rate policies allowing homeowners to rent, rather than requiring them to buy homes in new locations, has increased in the past three years. This approach lowers relocation costs while mitigating a key source of relocation reluctance: high housing costs in new locations. Two overarching qualitative trends illustrate a creative and strategic approach to managing mobility: • Growing use of alternative inter- national assignments designed to respond faster to businesses’ need for specific talent. • Ongoing elevation of mobility as an integral part of talent management strategies. A benchmark supporting the latter point represents perhaps the most noteworthy data in mobility today: A whopping 92 percent of mobility professionals surveyed by Weichert Relocation Resources Inc. during March and April identified their activi- ties as either “important” or “critical” to their companies’ talent manage- ment strategies. Source: Cartus Corp., 2012 Trends in Global Relocation. 37%of multinational companies plan to sustain their current rate of global relocation. 6%of multinational companies plan to decrease the number of global transferees during the next year. Global Transfer Volume Rising Fewer than 500 500 to 4,999 5,000-plus salaried employees salaried employees salaried employees Increase 23% 25% 29% No change 63 63 55 Decrease 14 13 16 Source: Atlas Van Lines, 2012 Corporate Relocation Survey. Relocation Budget Changes By company size Compared to 2011, do you anticipate that your relocation budget in 2012 will: Average Relocation Costs Source: Worldwide ERC, 2012 U.S.Transfer Volume & Cost Survey. Current employee homeowners New-hire homeowners Current employee renters New-hire renters $97,166 $19,309 $72,672 $24,216 q q M Mq q M M qM THE WORLD’S NEWSSTAND® Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageHRMagazine q q M Mq q M M qM THE WORLD’S NEWSSTAND® Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageHRMagazine ______________________ ________________________
  15. 15. 2013 HR Benchmarks Trendbook • HR Magazine 59 MOBILITY Use of Alternative International Assignments Increase Are you using alternative assignments? Yes 39% Considering implementing 22% No 39% 41% of companies report experiencing “moderate to major” problems related to employees’ reluctance to relocate; an additional 36 percent report “minor difficulties.” Reasons for Reluctance Percentages do not total 100 percent because multiple responses were allowed. Source: Worldwide ERC. Slowed real estate appreciation and depressed housing market in old location Old location home is in negative equity High housing cost in new location Employee or family resistant to the move Spouse reluctance to leave job High cost of living in new location Undesirable new locations Less-than-adequate relocation policy Source: Weichert Relocation Resources Inc., 2012 Employee Mobility Survey. 67%of respondents have structured programs where mobility profes- sionals help guide potential job candidates through their decisions to relocate, up from 53 percent in 2011. Most Desirable U.S. Cities for Executive Talent City Attractions Atlanta Business infrastructure, affordability and quality of life Chicago Strong culture, ethnic diversity, moderate cost of living and public transportation Denver Active adult and outdoor lifestyle Dallas High number of Fortune 500 companies and affordable living Source: Heidrick & Struggles, internal survey of 50-plus executive search consultants. Assignment Definition Use by the following percentages of respondents Commuter assignments International assignment involving travel between home and destina- tion countries for a number of workdays per month, with a set maxi- mum return trips home. Employee typically stays on home-country payroll but is expected to work in the host country frequently. 58% Extended business travel Employee travels regularly to an international location, typically for one or two weeks, to work on key projects. 72% Rotational assignments Series of two or more international assignments, typically one to three months, returning to home location or different location for a set period. 42% Core-flex Basic set of fixed and optional benefits, resulting in a package tailored to the employee’s circumstances or the unit’s cost constraints. 20% Local plus Such programs accelerate transition to the destination with local salary and benefits, plus payments to ease adjustment. Typically offered for permanent assignments or international new hires. 45% Types and Use of Alternative International Assignments Source: Weichert Relocation Resources Inc., 2012 Alternatives to International Assignments survey. Source: Weichert Relocation Resources Inc., 2012 Alternatives to International Assignments survey. 91% 86% 20% 17% 13% 9% 28% 28% For links to some of the reports and surveys cited in this section, see the 2013 Benchmarks Trendbook online at www.shrm.org/1212-Benchmarks- Trendbook. q q M Mq q M M qM THE WORLD’S NEWSSTAND® Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageHRMagazine q q M Mq q M M qM THE WORLD’S NEWSSTAND® Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageHRMagazine ____________________ __________ _______________________________________ ___________________ ___________________
  16. 16. 60 HR Magazine • 2013 HR Benchmarks Trendbook STAFFING MANAGEMENT Employment Trends a Mixed Bag S taffing trends in the United States during the past five years have been a study in contradictions. The Great Recession, which began in Decem- ber 2007, produced massive layoffs and hiring and salary freezes throughout 2008 and the first half of 2009. While the National Bureau of Economic Research declared an end to the economic recession in June 2009, companies have been slow to create new jobs and increase hiring—despite generating large profits. Between the second quarter of 2009 and the fourth quarter of 2010, corporations in the United States raked in $464 billion in pretax profits while the monthly unemployment rate hovered between 9 percent and 10 percent. As of August 2012, 40 percent of unemployed workers had been looking for work for 27 weeks or longer. In perhaps a sign of frustration, the percentage of people participating in the workforce reached its lowest level since 1981 in August—63.5 percent, according to the U.S. Labor Department. Paradoxically, HR professionals who are hiring report difficulty finding and retaining workers with key skills, especially given companies’ meager merit increases. As unemployment edges lower, voluntary departures are on the rise, encouraging employers to pay attention to what engages and retains their workers. But data show that strategic staffing can help HR profes- sionals keep cost-per-hire low, and retention and productivity high. Private Employment Not Keeping Pace While no longer hemorrhaging jobs, the economy hasn’t created the necessary 150,000 jobs per month to recoup the pre-2010 losses and keep up with the growing population, estimates the U.S. Labor Department. U.S. private employers have exceeded that target some months, but have fallen well short of it other months. March April May June July August September October November December January2011 February March April May June July August September October November December January2012 February March April May June July August February March April May June July August September October November December January2009 February March April May June July August September October November December January2010 February January2008 Total Private Employment, Monthly Change In thousands Source: U.S. Bureau of Labor Statistics. Voluntary Turnover Rising As unemployment has edged down, voluntary turnover has risen. U.S. unemployment rate Voluntary separation rate 2004 5.5% 9.3% 2005 5.1 10.5 2006 4.6 10.4 2007 4.6 10.4 2008 5.8 9.2 2009 9.3 7.3 2010 9.6 7.0 2011 8.5 8.0 Source: PwC Saratoga, 2012/2013 U.S. Human Capital Effectiveness Report: State of the Workforce. For links to some of the reports and surveys cited in this section, see the 2013 Benchmarks Trendbook online at www.shrm.org/1212-Benchmarks-Trendbook. 300 200 100 0 -100 -200 -300 -400 -500 -600 -700 -800 -900 q q M Mq q M M qM THE WORLD’S NEWSSTAND® Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageHRMagazine q q M Mq q M M qM THE WORLD’S NEWSSTAND® Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageHRMagazine
  17. 17. 2013 HR Benchmarks Trendbook • HR Magazine 61 STAFFING MANAGEMENT Mismatched Supply for Demand Despite the more than 12 million people out of work, 52 percent of organizations with full-time job openings indicated that they are having difficulty recruiting, according to 2011’s SHRM Poll: The Ongoing Impact of the Recession—Recruiting and Skill Gaps. The following percentages of HR professionals indicated that it is “somewhat” or “very” difficult to fill these positions: Of respondents reporting difficulty recruiting, the following percent- ages of HR professionals indicated that job applicants lack skills in these key areas: Source: Empsight International LLC, 2012-2013 Policies, Practices and Merit Survey. Skills Shortages Companies have big concerns about skills shortages. Very concerned 18.8% Concerned 33.5 Somewhat concerned 34.6 Not at all concerned 13.1 54% 44% 41% 39% 36% 36% 30% 25% 21% 19% 17% Critical thinking and problem-solving Professionalism and work ethic Written communications Leadership Teamwork and collaboration Oral communications Information technology application Creativity and innovation Lifelong learning and self-direction Ethics and social responsibility Diversity Percentages do not total 100 percent because multiple responses were allowed. Hiring Highs and Lows Cost-per-hire varies by industry, organization size, and whether recruiters are assigned to fill similar jobs or dissimilar jobs within a business. Cost-per-Hire for Key Industries Industry Cost-per-hire Number of positions hired Industries with high cost-per-hire Association—professional/trade $5,582 10 Manufacturing—durable 5,159 2,401 Publishing 4,438 1,501 Industries with low cost-per-hire Services—accommodation 1,062 316 Waste management 1,320 4,243 Arts and recreation 1,394 184 Cost-per-Hire by Organization Size Cost-per-hire Time-to-fill Fewer than 1,000 employees $3,079 29 days 1,000 or more employees $4,285 43 days Recruiter Assignments Cost-per-hire Time-to-fill By job specialty or function $2,958 28 days By business unit $3,939 39 days Source: SHRM Customized Benchmarking Database, 2011. High Productivity Means Low Turnover Industries reporting lower turnover rates have higher productivity levels than those found in industries with high turnover rates. This differential may suggest that indus- tries with higher revenue per full-time equivalent are more likely to hold onto their staffs. Industry Average annual turnover Revenue per FTE Services—accommodation, food and drinking places 35% $183,173 Arts, entertainment and recreation 27 188,817 Retail/wholesale trade 22 523,529 All industries 15 339,785 High-tech 11 207,763 Government/public 9 204,594 Association 8 294,582 Utilities 8 413,086 Source: SHRM Customized Benchmarking Database, 2011. Planning for Change Identifying top performers and high-potentials at risk of leaving, and monitoring gaps in current workforce capability and future workforce needs, are elements of a strategic workforce plan, but HR professionals have a long way to go in workforce planning. Has your organization conducted a strategic workforce planning assessment to … Identify future workforce needs over the next five years?.......................................40% Identify potential skills gaps over the next five years? ............................................36% Analyze the impact of workers age 50 and older leaving your organization?......29% Source: SHRM Survey Findings: SHRM-AARP Strategic Workforce Planning, 2012. q q M Mq q M M qM THE WORLD’S NEWSSTAND® Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageHRMagazine q q M Mq q M M qM THE WORLD’S NEWSSTAND® Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageHRMagazine Engineers High-skilled medical High-skilled technical Scientists Managers and executives Sales representatives Skilled trades Accounting, finance professionals 88% 86% 85% 83% 78% 72% 68% 54%
  18. 18. 62 HR Magazine • 2013 HR Benchmarks Trendbook TECHNOLOGY For links to some of the reports and surveys cited in this section, see the 2013 Benchmarks Trendbook online at www.shrm.org/1212- Benchmarks-Trendbook. HR Technology Is More Complete, Complex A fter a period that was seen as a deep freeze on systems spending for HR, many companies are finally thawing out budgets and looking to upgrade or add capabilities. Many orga- nizations are beginning to resume their technology spending to improve core HR services and realize efficiencies. Talent and performance management remain top priorities, while software- as-a-service and shared services are emerging as the most prevalent models for delivering HR services. To help give you some idea of how organizations view, use and plan for their HR technology needs, the following tables and charts look at buying plans for HR software, the state of HR self-service and analytics, and where major companies stand with regard to social media adoption and implementation. HR Technology Spending 2012 vs. 2011 More than 20 percent reduction 6% Less than 20 percent reduction 10% About the same 53% Less than 20 percent increase 21%More than 20 percent increase 10% Source: Towers Watson, 15th HR Service Delivery Survey. Service Delivery Applications Usage and Plans In use Budgeted within 12 months Within next 36 months No plans or not aware Employee self-service 82% 9% 6% 3% Manager self-service 54 19 14 13 Role-based portal access to self-service transactions and information 47 17 18 18 HR-oriented help desk 40 4 9 47 Source: CedarCrestone, 2012-2013 HR Systems Survey. 70%of companies use social media technologies. Source: McKinsey Global Institute, The Social Economy: Unlocking value and productivity through social technologies, 2012. q q M Mq q M M qM THE WORLD’S NEWSSTAND® Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageHRMagazine q q M Mq q M M qM THE WORLD’S NEWSSTAND® Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageHRMagazine ____________ _______________________________ ____________________
  19. 19. 2013 HR Benchmarks Trendbook • HR Magazine 63 TECHNOLOGY Factors Accounting for Increased HR Technology Spending in 2012 Percentage of respondents Deploying new modules or functions from existing vendors Upgrading or re-implementing existing human resource management systems Expanding self-service offerings Replacing older systems Implementing new vendors to automate processes for the first time Deploying new HR analytics or workforce planning capabilities Expanding existing functions into new regions or business units Deploying or redeploying an HR portal Deploying or redeploying a data warehouse Implementing new call center support technology Implementing mobile access Moving to an internally deployed cloud-based architecture Bringing services or technology formerly outsourced back in-house Moving to an information technology outsourcing approach Percentages do not total 100 percent because multiple responses were allowed. Source: Towers Watson, 15th HR Service Delivery Survey. 38% 36% 34% 33% 29% 25% 21% 12% 9% 7% 4% 3% 2% Use of Software-as-a-Service vs. Licensed Model Across all applications Budgeted In use within 12 months Other 9% 4% Outsourced process and software 3 3 Hybrid 10 11 Software-as-a-service, subscription-based 23 35 Licensed software, hosted 18 14 Licensed software, on premise 38 33 Basic HR Systems Usage and Plans Budgeted Within No plans In use for next 36 12 months months Payroll 99% 1% 0% 0% HR management system 97 2 1 0 Benefits administration 90 4 2 4 Workforce management Workforce analytics or planning Talent management Social media tools Service delivery Business intelligence, visualization and tools Administrative Talent Management Applications Usage and Plans Budgeted Within No plans In use for next 36 months or 12 months not aware Career planning and development 26% 16% 20% 38% Succession planning 29 15 20 36 Compensation management 57 12 10 21 Competency or profile management 57 15 15 13 Performance management 64 12 12 12 Learning management 66 7 8 19 Recruiting 85 5 3 7 Three-Year Application Adoption Outlook % in use within three years % in use 0 20 40 60 80 100 80%of companies host HR portals via in-house data centers. The remaining 20 percent use third-party hosts. System 22% Source: CedarCrestone, 2012-2013 HR Systems Survey. Source: CedarCrestone, 2012-2013 HR Systems Survey. Source: Towers Watson, 15th HR Service Delivery Survey, 2012. q q M Mq q M M qM THE WORLD’S NEWSSTAND® Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageHRMagazine q q M Mq q M M qM THE WORLD’S NEWSSTAND® Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageHRMagazine ______________________ ______________________
  20. 20. 64 HR Magazine • 2013 HR Benchmarks Trendbook WORKFORCE TRENDS A Snapshot of the U.S. Workforce October 2012 U.S. Unemployment Rate, 2007-12 2007 2008 2009 2010 2011 2012 Year Baby Boomers (age 55 and older) 2010 2020 Year Prime-age workers (ages 25 to 54) 2010 2020 Year Young workers (ages 16 to 24) 2010 2020 Foreign-Born Workers As a Share of Regional Labor Force Hispanic workers 2010 2020 Asian workers 2010 2020 Black workers 2010 2020 15.9%Percentage of foreign-born workers in the U.S. labor force in 2011 Projected Employment Change by Major Industry, 2010-20 Source: All figures from the U.S. Bureau of Labor Statistics. In thousands Health care and social assistance 5,639 Professional and business services 3,809 Construction 1,840 Retail trade 1,769 State and local government 1,642 Leisure and hospitality 1,343 Educational services 819 Other services 819 Transportation and utilities 817 Financial activities 780 Wholesale trade 744 Information 140 Mining 25 Manufacturing -73 Federal government -372 West Northeast South Midwest Projected Change in Percentage of Minorities in the U.S. Workforce Projected Change in Age Composition of the U.S. Workforce 4.6% 6.1% 9.7% 9.6% 9.1% 7.9% 24.0% 8.0% 14.2% 18.5% 19.5% 25.2% 11.2% 13.6% 63.7% 66.9% 14.8% 12% 11.6% 5.7% 4.7% 18.6% Labor force 155.6 million Employed 143.4 million Unemployed 12.3 million Long-term unemployed 5.0 million Marginally attached 2.4 million Part-time for economic reasons 8.3 million Part-time for noneconomic reasons 18.9 million The long-term unemployed category includes those who have been jobless for 27 weeks or more.“Marginally attached” people have not searched for work in the four weeks prior to the U.S. Bureau of Labor Statistics survey, and they are not counted as unemployed.They include 813,000 discouraged workers who are not looking for work because they believe no jobs are available. q q M Mq q M M qM THE WORLD’S NEWSSTAND® Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageHRMagazine q q M Mq q M M qM THE WORLD’S NEWSSTAND® Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageHRMagazine ______________________ _______________________ ________________________ ______________ _____________________ __________________ __________________________

×