2015 Strategic Benefits―Assessment and Communication of Benefits

1. October 15, 2015
SHRM Survey Findings: 2015 Strategic Benefits—
Assessment and Communication of Benefits

2. 2
The 2015 Strategic Benefits Survey is part of a survey series administered annually since 2012 by the
Society for Human Resource Management (SHRM). This research is used to determine whether
various employee benefits are leveraged to recruit and retain top talent. The six-part series features
the following topics:
 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: Assessment and Communication of Benefits
2015 Strategic Benefits Survey—Assessment and Communication of Benefits ©SHRM 2015
Introduction

3. • Change in investment in various benefits categories: One-half of organizations increased their investment in
health care benefits since fiscal year 2014; about one-quarter increased their investment in
wellness and preventive health (28%), professional and career development (26%), and financial
and compensation (22%) benefits. Very few (2%-5%) HR professionals indicated their
organizations had decreased their investment in various benefit categories.
• Most important benefit to the majority of employees: The majority of HR professionals indicated health care
benefits were the most important benefit to the majority (more than half) of their employees.
However, the percentage who indicated health care as the most important benefit to the majority of
their employees fell from 87% to 72% when comparing current perceptions versus expectations in
the next three to five years, indicating that the importance of this benefit may decrease over time.
• The main strategic focus for employee benefits package: More than one-quarter of HR professionals
indicated controlling health care costs (29%) or ensuring employees understand the value of their
benefits package (28%) was their organization’s main strategic focus for their employee benefits
package; 17% indicated retaining employees was their main strategic focus.
• Employee knowledge of employer-sponsored benefits available to them: About two-thirds (66%) of HR
professionals indicated their organization’s employees were “somewhat knowledgeable” about the
employer-sponsored benefits available to them; 16% were “very knowledgeable,” a statistically
significant increase from 2014 (9%).
32015 Strategic Benefits Survey—Assessment and Communication of Benefits ©SHRM 2015
Key Findings

4. • Primary method used to determine how much employees know about employer-sponsored benefits available to them:
About one-fifth of respondents indicated their organizations determined the knowledge level of
employees on their employer-sponsored benefits through the use of web-based benefits tools
(19%); 16% used employee surveys. However, one-half (50%) indicated their organizations did not
use any methods to determine how well employees understood the employer-sponsored benefits
available to them.
• Effectiveness of the organization’s employee benefits communications efforts: More than one-quarter (29%) of
HR professionals indicated their organizations’ employee benefits communications efforts were
“very effective” in informing employees about their benefits; about three-fifths (57%) indicated these
efforts were “somewhat effective.”
• Employee benefits communication budget: About two-fifths (39%) of HR professionals whose organizations
had an employee benefits communication budget indicated the budget was increased in fiscal year
2015 compared with fiscal year 2014; very few (4%) indicated the budget had been decreased.
• Employee benefits communications methods used by organizations: The top benefits communications method
used by organizations was providing online or paper enrollment materials to employees (76%), a
decrease of eight percentage points since 2012 (from 84%). More than three-fifths (63%) indicated
their organizations offered group employee benefits communication with an organizational
representative, and one-half (50%) reported their employees received one-on-one employee
benefits counseling with an organizational representative.
42015 Strategic Benefits Survey—Assessment and Communication of Benefits ©SHRM 2015
Key Findings (continued)

5. • Use of social media as an employee benefits communications tool: Very few respondents (3%) indicated their
organizations used social media as an employee benefits communications tool. Among
respondents who indicated their organizations were not using social media, 9% indicated they
planned to start using it within the next 12 months. Although more than one-half (56%) indicated
their organizations did not have plans to use social media for this purpose, the same was reported
by almost two-thirds (65%) in 2014, representing a shift/increase in the percentage of organizations
that may consider using social media in the future.
5
Key Findings (continued)
2015 Strategic Benefits Survey—Assessment and Communication of Benefits ©SHRM 2015

6. • Health care remains the most important benefit to the majority of employees, at a time when HR
professionals devote extensive time to complying with requirements connected to the Patient
Protection and Affordable Care Act (PPACA). Although some employers may opt out of coverage
and pay a penalty under PPACA, research has shown this could be a detriment to recruitment and
retention efforts. Knowing that, HR professionals should place added emphasis on communications
for health care coverage options for their employees.
• The vast majority of HR professionals said their benefits communications efforts have some degree
of effectiveness, but one-half of those surveyed do not use any methods to determine workers’
knowledge of their benefit offerings. Determining employees’ familiarity with benefits is an important
component of communication plans, because many workers and job seekers today have forgone
higher base salaries in favor of attractive benefits packages, particularly those that include flexible
work arrangements.
• Many HR professionals indicated that their organization increased the benefits communication
budget in fiscal year 2015, yet very few are using social media as part of their strategy. Given the
low-cost nature of social media channels, HR professionals may consider using this medium as a
means of educating their employees about benefits packages and controlling associated costs.
62015 Strategic Benefits Survey—Assessment and Communication of Benefits ©SHRM 2015
What Do These Findings Mean for the HR Profession?

7. 7
Key Findings
Awareness and Importance of Benefits

8. 8
Change in Investment in Various Benefit Categories Since Fiscal Year 2014
2015 Strategic Benefits Survey—Assessment and Communication of Benefits ©SHRM 2015
Note: n = 266-330. Respondents who indicated they were “not sure” were excluded from this analysis. Percentages may not total 100% due to
rounding.
7%
6%
7%
11%
11%
11%
13%
18%
22%
26%
28%
50%
91%
93%
89%
85%
86%
87%
84%
78%
74%
71%
70%
45%
2%
2%
5%
4%
2%
3%
3%
4%
5%
3%
2%
5%
Other benefits
Family-friendly benefits
Housing and relocation benefits
Business travel benefits
Flexible working benefits
Leave benefits
Employee programs and services benefits
Retirement savings and planning benefits
Financial and compensation benefits
Professional and career development benefits
Wellness and preventive health benefits
Health care benefits
Increased Remained the same Decreased

9. 92015 Strategic Benefits Survey—Assessment and Communication of Benefits ©SHRM 2015
Most Important Benefit to the Majority (More Than Half) of Employees
87%
3%
3%
3%
2%
1%
1%
0%
0%
1%
72%
9%
6%
8%
2%
2%
1%
0%
0%
0%
Health care benefits
Retirement savings and planning benefits
Flexible working benefits
Financial and compensation benefits
Leave benefits
Wellness and preventive health
Professional and career development
benefits
Family-friendly benefits
Housing and relocation benefits
Other
Currently
In the next
1e.g., telecommuting, compressed workweek
2e.g., financial advice, bonus plans and subsidies, educational assistance, etc.
3e.g., flu vaccinations, smoking cessation program
4e.g., professional training
5e.g., adoption assistance, elder care referral service
1
2
3
4
5
Note: n = 434-435. Respondents who answered “not sure” were excluded from this analysis. Percentages may not total 100% due to rounding.
3 to 5 years

10. 10
What do these findings mean for the HR profession?Organization’s Main Strategic Focus for Employee Benefits Package
2015 Strategic Benefits Survey—Assessment and Communication of Benefits ©SHRM 2015
Note: n = 429. Respondents who answered “None of the above” or “not sure” were excluded from this analysis.
1 e.g., health care
29%
28%
17%
9%
8%
6%
3%
Controlling health care costs
Ensuring employees understand the
value of their benefits package
Retaining employees
Increasing employee engagement
Recruiting new employees
Shifting some of the financial
responsibility to employees for select…
Other
1

11. 11
What do these findings mean for the HR profession?Employee Knowledge of Employer-Sponsored Benefits Available to Them
2015 Strategic Benefits Survey—Assessment and Communication of Benefits ©SHRM 2015
16%
66%
17%
1%
9%
73%
17%
1%
13%
67%
19%
0%
14%
72%
14%
0%
Very knowledgeable
Somewhat knowledgeable
Not very knowledgeable
Not at all knowledgeable
2015 (n = 452)
2014 (n = 372)
2013 (n = 429)
2012 (n = 433)
1
Note: Respondents who answered “not sure” were excluded from this analysis. Percentages may not total 100% due to rounding.
1 Statistically significant difference from 2014.

12. 12
What do these findings mean for the HR profession?
Primary Method Used to Determine the Knowledge Level of Employees
on the Employer-Sponsored Benefits Available to Them
2015 Strategic Benefits Survey—Assessment and Communication of Benefits ©SHRM 2015
19%
16%
7%
4%
6%
50%
Use of web-based benefits tools
Employee surveys
Employee focus groups
Employee meetings
Other
We do not use any methods to
determine their knowledge
*
Note: n = 454. Percentages may not total 100% due to rounding. An asterisk (*) indicates that the response option was developed from open-ended
responses.

13. 13
What do these findings mean for the HR profession?Methods Used to Determine the Types of Benefits Employees Want
2015 Strategic Benefits Survey—Assessment and Communication of Benefits ©SHRM 2015
30%
30%
9%
2%
2%
2%
7%
34%
Employee surveys
Employee requests
Employee focus groups
Union negotiations
Comparison of competitors'
benefits/market
Employee meetings
Other
We do not use any methods to
determine what benefits employees want
*
Note: n = 461. Percentages do not total 100% due to multiple response options. An asterisk (*) indicates that the response option was developed from
open-ended responses.
*
*

14. 14
Key Findings
Assessment and Communication of Benefits

15. 152015 Strategic Benefits Survey—Assessment and Communication of Benefits ©SHRM 2015
Effectiveness of Employee Benefits Communications Efforts in Informing
Employees About Their Benefits
Note: n = 437. Respondents who answered “not sure” were excluded from this analysis. Percentages may not total 100% due to rounding.
29%
57%
11%
2%
Very effective
Somewhat effective
A little effective
Not at all effective

16. 162015 Strategic Benefits Survey—Assessment and Communication of Benefits ©SHRM 2015
Change in Organization’s Current Fiscal Year’s Employee Benefits
Communications Budget Compared with Previous Fiscal Year
39%
57%
4%
Increased in current fiscal year
compared with previous fiscal year
Remained the same
Decreased in current fiscal year
compared with previous fiscal year
Note: n = 302. Only organizations that had a employee benefits communications budget in place in both fiscal year 2014 and fiscal year 2015 were
included in this analysis.

17. 2015
(n = 452)
2014
(n = 368)
2013
(n = 431)
2012
(n = 447)
Enrollment materials (online or paper) 76% 83% 82% 84%
Group employee benefits communications
with an organizational representative
63% 70% 62% 65%
One-on-one employee benefits counseling
with an organizational representative
50% 52% 55% 51%
Intranet 44% 46% 46% 48%
Newsletters (online or paper) 34% 41% 34% 39%
Direct mail to home/residence 33% 38% 33% 41%
Benefit fairs 21% 25% 24% 26%
Virtual education 16% 15% 14% 13%
Social media 3% 4% 3% 4%
E-mails* 2% -- -- --
Other 4% 9% 9% 2%
172015 Strategic Benefits Survey—Assessment and Communication of Benefits ©SHRM 2015
Employee Benefits Communications Methods Used by Organizations
1
Note: Respondents who answered “not sure” were excluded from this analysis. Percentages do not total 100% due to multiple response options. An
asterisk (*) indicates that the response option was developed from open-ended responses.
1Statistically significant difference from 2012.

18. 9%
56%
35%
8%
65%
27%
8%
57%
34%
8%
60%
33%
Yes
No
Not sure 2015 (n = 433)
2014 (n = 347)
2013 (n = 416)
2012 (n = 429)
182015 Strategic Benefits Survey—Assessment and Communication of Benefits ©SHRM 2015
Plans to Use Social Media as an Employee Benefits Communications Tool
Within the Next 12 Months
1
Note: Only organizations that currently do not use social media as an employee benefits communications method were asked this question.
Percentages may not total 100% due to rounding.
1Statistically significant difference from 2014.
Very few (3%) indicated their
organization currently uses
social media as an employee
benefits communications tool.

19. 2015 Strategic Benefits Survey—Leveraging Benefits to Retain Employees ©SHRM 2015 19
Key Findings
Demographics

20. 20
Note: n = 361. Percentages do not total 100% due to multiple response options.
Demographics: Organization Industry
2015 Strategic Benefits Survey—Assessment and Communication of Benefits ©SHRM 2015
Percentage
Manufacturing 23%
Health care and social assistance 16%
Professional, scientific and technical services 12%
Finance and insurance 10%
Government agencies 8%
Educational services 7%
Transportation and warehousing 6%
Retail trade 6%
Construction 5%
Utilities 4%
Mining, quarrying, and oil and gas extraction 4%

21. 21
Key FinDemographics: Organization Industry (continued)
Percentage
Wholesale trade 4%
Administrative and support, and waste management and remediation services 4%
Real estate and rental and leasing 3%
Accommodation and food services 3%
Religious, grant-making, civic, professional and similar organizations 3%
Arts, entertainment and recreation 2%
Repair and maintenance 2%
Information 2%
Agriculture, forestry, fishing and hunting 1%
Personal and laundry services 0%
Other industry 11%
2015 Strategic Benefits Survey—Assessment and Communication of Benefits ©SHRM 2015
Note: n = 361. Percentages do not total 100% due to multiple response options.

22. 22
Key FinDemographics: Organization Sector
57%
18%
13%
9%
3%
Privately owned for-profit
Nonprofit
Publicly owned for-profit
Government
Other
n = 355
2015 Strategic Benefits Survey—Assessment and Communication of Benefits ©SHRM 2015

23. 23
Key FinDemographics: Organization Staff Size
n = 343
2015 Strategic Benefits Survey—Assessment and Communication of Benefits ©SHRM 2015
30%
35%
21%
10%
4%
1 to 99 employees
100 to 499 employees
500 to 2,499 employees
2,500 to 24,999 employees
25,000 or more employees

24. 24
Key FinDemographics: Other
2015 Strategic Benefits Survey—Assessment and Communication of Benefits ©SHRM 2015
n = 359
U.S.-based operations only 77%
Multinational operations 23%
Does your organization have U.S.-based
operations (business units) only, or does it operate
multinationally?
n = 360
n = 226
n = 226
Single-unit organization: An organization in
which the location and the organization are
one and the same.
38%
Multi-unit organization: An organization that
has more than one location.
62%
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?
Multi-unit headquarters determines HR
policies and practices.
56%
Each work location determines HR policies
and practices.
3%
A combination of both the work location and
the multi-unit headquarters determines HR
policies and practices.
41%
Corporate (companywide) 75%
Business unit/division 11%
Facility/location 14%
What is the HR department/function for which you
responded throughout this survey?

25. 25
SHRM Survey Findings:
Survey Methodology
SHRM Survey Findings: Strategic Benefits—Assessment and
Communication of Benefits
2015 Strategic Benefits Survey—Assessment and Communication of Benefits ©SHRM 2015
Survey Methodology:
• Response rate = 12%
• 461 HR professionals from a randomly selected sample of SHRM’s membership participated in this
survey
• Margin of error +/- 5%
• Survey fielded May-June 2015
Project Lead:
Karen Wessels, researcher, workforce planning, SHRM Research
Project Contributors:
Evren Esen, director, SHRM-SCP, Survey Programs, SHRM Research
Bruce Elliott, manager, SHRM-SCP, Compensation and Benefits
Jennifer Schramm, manager, SHRM-SCP, Workforce Trends and Forecasting, SHRM
Research

26. 262015 Strategic Benefits Survey—Assessment and Communication of Benefits ©SHRM 2015
Additional SHRM Resources
Health Care Reform Resource Page: shrm.org/healthcare
For more survey/poll findings, visit shrm.org/surveys
For more information about SHRM’s Research Services:
» Customized Research Service, visit shrm.org/customizedresearch
» Engagement Survey Service, visit shrm.org/peopleinsight
» Customized Benchmarking Service, visit shrm.org/benchmarks
Follow us on Twitter @SHRM_Research

27. 272015 Strategic Benefits Survey—Assessment and Communication of Benefits ©SHRM 2015
About SHRM
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