"Based on our data, 60% of companies have reported that the economic downturn has affected their employee benefit programs," Williams noted, citing research from the group's 2009 Employee Benefits Survey Report. The survey reflects data on responses from 522 randomly selected HR professionals who are members of SHRM.
For example, of the 52 types of benefits offered under health care and welfare, eight declined in 2009: (1) contraceptive coverage; (2) HMO; (3) life insurance for dependents; (4) long-term care insurance; (5) retiree health care coverage; (6) supplemental accident insurance; (7) surcharges for spousal health care coverage; and (8) wholesale generic drug program for injectable drugs.
The emotional stress caused by economic uncertainty, however, has produced an uptick in mental health coverage. Nearly 75% of HR professionals reported their organizations offered mental health benefits last year, compared to 80% this year.
Additionally, more companies provided a defined contribution retirement plan benefit in 2009 (90%) than 2008 (84%). Williams acknowledged, however, that some employers are putting their 401(k) matches on hold, but the trend doesn't suggests a major overhaul of 401(k) benefits. "The people who are overseeing those benefits realize that the economy is going to rebound" and will most likely reinstate those matches, he explained.
Many have speculated that when the economy starts to rebound, those with jobs will seek out greener pastures. "Our data shows this is not the case," Williams explained. For instance, three out of four employees say they will remain with their current employer when the economy rebounds. The HR profession can take credit for creating such loyalty, he noted.
Other key findings from the survey:
Nearly 16% of HR professionals reported that their company offers some form of domestic partner benefits beyond health care. Specifically, 14% offer family-friendly benefits to same-sex partners and 14% extend the same to opposite-sex partners. For health care, 37% of organizations offer the benefit to opposite-sex domestic partners and 36% offer it to same-sex domestic partners.
A financial literacy program benefit debuted on the 2009 survey with 12% of surveyed companies offering it.
HR professionals reported fewer organizations offering the executive retention bonus benefit in 2009 (11%) than 2008 (17%).
