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- 1. SHRM Survey Findings: Employee Benefits
in California—Leveraging Benefits to
Retain Employees
April 23, 2014
- 2. • This is part four 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 Retain Employees ©SHRM 2014 2
Introduction
- 3. • For the purpose of this survey, the following definitions were used:
» Highly skilled employees: employees with skills that are critical to the short- and long-term
success of their operating unit or the organization.
» High-performing employees: employees who were ranked among the top 10% in their
organization’s last performance review.
Employee Benefits in California—Leveraging Benefits to Retain Employees ©SHRM 2014 3
Definitions
- 4. Leveraging Benefits to Retain Employees at All Levels of the Organization
• Do organizations leverage their benefits program to retain employees at all levels of the organization? Only one in
five (20%) California organizations reported leveraging their benefits program to retain employees.
• What benefits offerings have been leveraged to retain employees at all levels of the organization? Similar to the
overall findings, organizations in California reported that health care (68%) and retirement savings
and planning (55%) are the benefits most frequently leveraged to retain employees.
• In the next three to five years, what benefits offerings will increase in importance to help organizations retain all
employees? HR professionals in California indicated that professional and career development
benefits (67%) and health care (63%) are two of the benefits that would increase in importance with
respect to retaining employees.
Employee Benefits in California—Leveraging Benefits to Retain Employees ©SHRM 2014 4
Key Findings for Retaining Employees at All Levels
California
- 5. Leveraging Benefits to Retain Highly Skilled Employees
• Are organizations leveraging their benefits program to retain highly skilled employees? About one-fifth (21%) of
organizations in California reported leveraging their benefits program to retain highly skilled
employees.
• What benefits offerings have been leveraged to retain highly skilled employees? Health care (67%), professional
and career development benefits (46%), and flexible working benefits (46%) are the benefits most
frequently leveraged to retain these employees in California. Compared to the overall findings,
many benefits were leveraged less often by organizations in California, with the largest difference of
23 percentage points for retirement savings and planning benefits (36% in California, 59%
nationally).
• In the next three to five years, what benefits offerings will increase in importance to help organizations retain highly
skilled employees? Organizations indicated that retirement savings and planning benefits (64%) and
heath care (64%) will increase in importance to help organizations retain highly skilled employees.
Employee Benefits in California—Leveraging Benefits to Retain Employees ©SHRM 2014 5
Key Findings for Retaining Highly Skilled Employees
California
- 6. Leveraging Employee Benefits to Retain High-Performing Employees
• Do organizations leverage their benefits program to retain high-performing employees? Only one in five (20%)
organizations reported leveraging their benefits program over the past 12 months to retain high-
performing employees.
• What benefits offerings have been leveraged to retain high-performing employees? HR professionals in California
reported both health care (69%) and professional and career development benefits (50%) as the
benefits they leverage the most to retain high-performing employees. Compared to the overall
findings, some benefits were leveraged less often by organizations in California, with the largest
difference of 25 percentage points for retirement savings and planning benefits (38% in California,
63% nationally).
• In the next three to five years, what benefits offerings will increase in importance to help organizations retain high-
performing employees? Organizations indicated that health care (65%), retirement savings and
planning (63%), and professional and career development benefits (60%) are the benefits that will
increase the most in importance with respect to retaining high-performing employees.
Employee Benefits in California—Leveraging Benefits to Retain Employees ©SHRM 2014 6
Key Findings for Retaining High-Performing Employees
California
- 7. • The use of benefits as a retention tool is not widespread among HR professionals (20% in
California, 18% nationally in the past 12 months). However, considering that wage growth has been
weak in the post-recession economy, HR professionals cannot always use higher salaries as a
draw for keeping talent. Many recruiters now advocate using a “total rewards” approach to
retention, and they encourage leveraging an employer’s benefits package as part of that strategy.
• With medical costs on the rise and many workers unprepared financially for retirement, HR
professionals should consider leveraging health care benefits as part of their retention strategy. Of
those organizations that used benefits as a retention tool, 68% in California and nationally cited
health care benefits as part of that strategy. Even with some uncertainty surrounding health care
plans in connection with the Patient Protection and Affordable Care Act, HR professionals should
view health care benefits, if offered at their employer, as a valuable tool for keeping workers in the
fold.
• Many studies have shown that members of the Millennial generation, or those born between 1982
and 2002, place a high value on flexible work schedules and managing their own time. Many
organizations (46% in California, 55% nationally) that used benefits for retention of highly-skilled
workers cited flexible work benefits as part of that strategy. If this benefit is offered at their
employer, HR professionals should highlight this aspect of their overall benefits plans as a tool to
keep talented Millennials at their organizations.
Employee Benefits in California—Leveraging Benefits to Retain Employees ©SHRM 2014 7
What do these findings mean for the HR profession?
- 8. Leveraging Benefits to Retain
Employees
at All Levels of the
Organization
Employee Benefits in California—Leveraging Benefits to Retain Employees ©SHRM 2014 8
- 9. Over the past 12 months, has your organization had
difficulty retaining employees at all levels of the
organization?
Employee Benefits in California—Leveraging Benefits to Retain Employees ©SHRM 2014 9
Note: Respondents who answered “not sure” were excluded from this analysis.
28%
72%
26%
74%
Yes
No
California (n
= 310)
Overall (n =
349)
- 10. Over the past 12 months, has your organization
leveraged your benefits program to retain employees
at all levels of the organization?
Employee Benefits in California—Leveraging Benefits to Retain Employees ©SHRM 2014 10
Note: Respondents who answered “not sure” were excluded from this analysis.
20%
80%
18%
82%
Yes
No
California (n =
293)
Overall (n =
335)
- 11. Which of the following benefits has your organization
leveraged to retain employees at all levels within
your organization?
Employee Benefits in California—Leveraging Benefits to Retain Employees ©SHRM 2014 11
Note: Respondents who answered “not sure” and those whose organizations did not leverage their benefits program
to retain employees at all levels within the organization were excluded from this analysis. Percentages do not
equal 100% due to multiple response options.
68%
55%
45%
40%
37%
27%
27%
18%
68%
57%
43%
37%
40%
38%
27%
15%
Health care
Retirement savings
and planning
Flexible working
benefits
Leave benefits
Professional and
career development
benefits
Family-friendly
benefits
Preventive health
and wellness
Housing and
relocation
benefits
California (n = 60)
Overall (n = 60)
- 12. Employee Benefits in California—Leveraging Benefits to Retain Employees ©SHRM 2014 12
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
retain all levels of employees?
67%
63%
60%
60%
53%
42%
25%
15%
33%
33%
36%
40%
41%
56%
73%
65%
0%
3%
3%
0%
5%
2%
2%
20%
Professional and
career development
benefits
Health care
Retirement savings
and planning
Preventive health
and wellness
Flexible working
benefits
Family-friendly
benefits
Leave benefits
Housing and
relocation benefits
Increase in importance Remain the same Decrease in importance
Note: n = 46-60. Respondents who answered “not sure” and whose organizations did not leverage their benefits
program to retain employees at all levels within the organization were excluded from this analysis. Percentages
may not equal 100% due to rounding.
- 14. Employee Benefits in California—Leveraging Benefits to Retain Employees ©SHRM 2014 14
Over the past 12 months, has your organization had
difficulty retaining highly skilled employees?
30%
70%
28%
72%
Yes
No
California (n =
303)
Overall (n =
348)
Note: Respondents who answered “not sure” were excluded from this analysis.
- 15. Over the past 12 months, has your organization had
difficulty retaining highly skilled employees?
Employee Benefits in California—Leveraging Benefits to Retain Employees ©SHRM 2014 15
Note: Only statistically significant differences are shown.
Comparisons by organization staff size
100 to 499 employees (36%) > 1 to 99 employees (14%)
Comparisons by organization staff size
• Organizations with 100 to 499 employees are more likely than organizations with 1 to
99 employees to have had difficulty retaining highly skilled employees over the past
12 months.
Comparisons by organization sector
Publicly owned for-profit (50%) > Privately owned for-profit (28%)
Comparisons by organization sector
• Publicly owned for-profit organizations are more likely than privately owned for-
profit organizations to have had difficulty retaining highly skilled employees over
the past 12 months.
- 16. Over the past 12 months, has your organization
leveraged your benefits program to retain highly
skilled employees?
Employee Benefits in California—Leveraging Benefits to Retain Employees ©SHRM 2014 16
Note: Respondents who answered “not sure” were excluded from this analysis.
21%
79%
20%
80%
Yes
No
California (n =
289)
Overall (n =
335)
- 17. Employee Benefits in California—Leveraging Benefits to Retain Employees ©SHRM 2014 17
Which of the following benefits has your organization
leveraged to retain highly skilled employees?
67%
46%
46%
38%
36%
28%
21%
21%
63%
55%
55%
38%
59%
41%
19%
28%
Health care
Professional and
career development
benefits
Flexible working
benefits
Leave benefits
Retirement savings
and planning
Family-friendly
benefits
Housing and
relocation benefits
Preventive health
and wellness
California (n = 61)
Overall (n = 64)
Note: Respondents who answered “not sure” and whose organizations did not leverage their benefits program to
retain highly skilled employees were excluded from this analysis. Percentages do not equal 100% due to multiple
response options.
- 18. Employee Benefits in California—Leveraging Benefits to Retain Employees ©SHRM 2014 18
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
retain highly skilled employees?
64%
64%
54%
48%
46%
38%
29%
16%
34%
36%
45%
48%
51%
57%
67%
67%
2%
0%
2%
3%
4%
5%
3%
18%
Health care
Retirement savings
and planning
Professional and
career development
benefits
Flexible working
benefits
Family-friendly
benefits
Preventive health
and wellness
Leave benefits
Housing and
relocation benefits
Increase in importance Remain the same Decrease in importance
Note: n = 51-59. Respondents who answered “not sure” and whose organizations did not leverage their benefits
program to retain highly skilled employees were excluded from this analysis. Percentages may not equal 100% due
to rounding.
- 20. Over the past 12 months, has your organization had
difficulty retaining high-performing employees?
Employee Benefits in California—Leveraging Benefits to Retain Employees ©SHRM 2014 20
Note: Respondents who answered “not sure” were excluded from this analysis.
31%
69%
26%
74%
Yes
No
California (n =
307)
Overall (n =
350)
- 21. Over the past 12 months, has your organization had
difficulty retaining high-performing employees?
Employee Benefits in California—Leveraging Benefits to Retain Employees ©SHRM 2014 21
Note: Only statistically significant differences are shown.
Comparisons by organization staff size
500 to 2,499 employees (38%) > 1 to 99 employees (15%)
Comparisons by organization staff size
• Organizations with 500 to 2,499 employees are more likely than organizations with 1
to 99 employees to have had difficulty retaining high-performing employees over the
past 12 months.
- 22. Over the past 12 months, has your organization
leveraged your benefits program to retain high-
performing employees?
Employee Benefits in California—Leveraging Benefits to Retain Employees ©SHRM 2014 22
Note: Respondents who answered “not sure” were excluded from this analysis.
20%
80%
19%
81%
Yes
No
California (n
= 289)
Overall (n =
336)
- 23. Employee Benefits in California—Leveraging Benefits to Retain Employees ©SHRM 2014 23
Which of the following benefits has your organization
leveraged to retain high-performing employees?
69%
50%
38%
38%
36%
22%
22%
17%
63%
49%
38%
63%
57%
22%
27%
37%
Health care
Professional and
career development
benefits
Leave benefits
Retirement savings
and planning
Flexible working
benefits
Housing and
relocation benefits
Preventive health
and wellness
Family-friendly
benefits
California (n = 58)
Overall (n = 63)
Note: Respondents who answered “not sure” and whose organizations did not leverage their benefits program to
retain high-performing employees were excluded from this analysis. Percentages do not equal 100% due to multiple
response options.
- 24. Employee Benefits in California—Leveraging Benefits to Retain Employees ©SHRM 2014 24
Within the next three to five years, what benefits
offerings will increase or decrease in importance in
your organization’s efforts to retain high-performing
employees?
65%
63%
60%
51%
47%
39%
27%
15%
31%
35%
40%
43%
51%
61%
71%
70%
4%
2%
0%
6%
2%
0%
2%
15%
Health care
Retirement savings
and planning
Professional and
career development
benefits
Flexible working
benefits
Family-friendly
benefits
Preventive health
and wellness
Leave benefits
Housing and
relocation benefits
Increase in importance Remain the same Decrease in importance
Note: n = 45-61. Respondents who answered “not sure” and whose organizations did not leverage their benefits
program to retain high-performing employees were excluded from this analysis.
- 26. 31%
36%
18%
10%
5%
1 to 99 employees
100 to 499 employees
500 to 2,499
employees
2,500 to 24,999
employees
25,000 or more
employees
Employee Benefits in California—Leveraging Benefits to Retain Employees ©SHRM 2014 26
Demographics: Organization Staff Size
n = 310
- 28. Percentage
Professional, scientific and technical services 24%
Health care and social assistance 13%
Manufacturing 12%
Finance and insurance 10%
Government agencies 8%
Educational services 8%
Transportation and warehousing 7%
Retail trade 7%
Whole trade 6%
Real estate and rental and leasing 5%
Accommodation and food services 4%
Administrative and support and waste management and remediation services 4%
Construction 4%
Information 4%
Utilities 4%
Religious, grantmaking, civic, professional and similar organizations 3%
Mining 2%
Arts, entertainment and recreation 2%
Repair and maintenance 2%
Agriculture, forestry, fishing and hunting 2%
Personal and laundry services 1%
Other 9%
28Employee Benefits in California—Leveraging Benefits to Retain Employees ©SHRM 2014
Demographics: Organization Industry
Note: n = 328. Percentages do not equal 100% due to multiple response options.
- 29. Employee Benefits in California—Leveraging Benefits to Retain Employees ©SHRM 2014 29
Demographics: Other
U.S.-based operations only 79%
Multinational operations 21%
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/division 15%
Facility/location 16%
Note: n = 234. Percentages do not equal 100%
due to rounding.
What is the HR department/function
for which you responded throughout
this survey?
- 30. 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 Retain Employees ©SHRM 2014 30
- 31. • SHRM Research Findings: State of Employee Benefits in the Workplace—
Leveraging Benefits to Retain Employees
• SHRM Research Findings: Employee Benefits Landscape in California
• California Resources Page
• Benefits Underused to Recruit, Retain, SHRM Finds
• Retention Resource Page
• Staffing Management Resource Page
Employee Benefits in California—Leveraging Benefits to Retain Employees ©SHRM 2014 31
Additional SHRM Resources
- 32. 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
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
32Employee Benefits in California—Leveraging Benefits to Retain Employees ©SHRM 2014
- 33. 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.
33Employee Benefits in California—Leveraging Benefits to Retain Employees ©SHRM 2014