Talent Management - November 2008 - (Page 24)

recruitment & retention assessment & evaluation compensation & beneﬁts performance management learning & development succession planning [compensation & beneﬁts] by David Weldon T aming Employee Beneﬁts Programs A competitive employee beneﬁts program can help attract and retain skilled workers. By balancing need-to-have and nice-tohave offerings, involving employees more in plan management and regularly monitoring which offerings bring the greatest return on investment, leading organizations can keep beneﬁts plan costs low and employee satisfaction high. In addition to driving health care coverage costs down, Medical insurance is far and away the most expensive the next top goal with beneﬁts management programs beneﬁt offered by organizations, and it can be a budget is to drive retention rates up, survey data revealed. buster. A new research study published in July 2008 Indeed, 49 percent of all organizations surveyed cited from research ﬁrm Aberdeen Group found the cure isn’t employee retention as a top concern. in reducing medical care coverage, but in ﬁnding ways to make Figure 1: Performance by Class Status it less needed. For example, include wellness programs and disease management programs, both of which attempt to rein in the need and cost of other health care by keeping employees more healthy to begin with. If a company is aggressive about containing costs, it may tie employees’ participation in such programs to the amount they pay into the company health plan or how much they must provide in healthservice co-payments. Definition of maturity class Mean class performance B enjamin Franklin said, “An ounce of prevention is worth a pound of cure,” and that certainly is the approach being adopted by leading organizations looking to contain rising health care beneﬁt costs. eﬁts cost per employee and administrative burden on human resources (See Figure 1.). Pressure Points Best-in-Class: Top 20% of aggregate performance scorers • 66% have improved employee retention. • 65% have increased employee job satisfaction. • 59% have decreased benefits-per-employee costs. • 44% have reduced the administrative burden on human resources. • 14% have improved employee job retention. • 14% have increased employee job satisfaction. • 14% have decreased benefits-per-employee costs. • 10% have reduced the administrative burden on human resources. • 4% have improved employee retention. • 3% have increased employee job satisfaction. • 1% have decreased benefits-per-employee costs. • 4% have reduced the administrative burden on human resources. Industry Average: Middle 50% of aggregate performance scorers The study, “Taming the Beneﬁts Management Beast: Driving Costs Down and Satisfaction Up,” surveyed more than 330 organizations regarding Source: Aberdeen Group, June 2008 their investments in beneﬁts management programs and in systems to manage those programs. Aberdeen collected data against 10 metrics as- A competitive employee beneﬁts program is critical signed to distinct workforce management elements, to attract and retain skilled workers. But organizaincluding improvements seen in revenue, recruiting tions naturally want to reduce the cost of individual and retention. Data revealed best-in-class organiza- employee beneﬁts. The problem is freezing or reductions are achieving signiﬁcant gains in the areas of ing beneﬁt program budgets to cut costs can put the employee job satisfaction, employee retention, ben- program out of balance with employee demands. To Laggard: Bottom 30% of aggregate performance scorers 24 November 2008 talent management magazine www.talentmgt.com http://www.talentmgt.com

Table of Contents Feed for the Digital Edition of Talent Management - November 2008

Talent Management - November 2008 Editor’s Letter Contents Human Performance Leading Edge Learning Connections Recruitment & Retention Assessment & Evaluation Compensation & Benefits Performance Management Learning & Development Succession Planning Insight Dashboard Application Advertisers’ Index Editorial Resources Full Potential

Talent Management - November 2008

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