Can't afford raises? Other options are available

National surveys of employers and their workers indicate that although the recession negatively affected what companies spend on employee benefits, the impact is slowing.

Of the human resources professionals participating in the national 2010 Society for Human Resource Management (SHRM) Employee Benefits Survey, 72 percent confirmed that employee benefits packages had been hurt by the recession - and that includes both for-profit and not-for-profit businesses.

Benefits costs are a huge consideration in any organization's budget. According to the Metlife's “Ninth Annual Study of Employee Benefits Trends,” companies spend about 48 percent of an employee's annual salary on benefits - 19 percent on mandatory benefits, 18 percent on voluntary benefits and 11 percent on pay for time not worked.

The one-two punch of the ongoing weak national economy and big jumps in health care costs has pushed many companies to rethink what they could do to continue to attract and retain quality employees.

RESOURCES

Cedar Rapids-based Geonetric Inc., for example, with more than 60 employees, reviewed its non-health related benefits, said Anne Ohrt, Geonetric human resources manager.

“We've really tried to switch gears and say, ‘What can we do with the resources we have?' ” she said.

FLEX TIME UP

One of the benefits that Geonetric offers doesn't cost the company anything - flex time. Qualified employees are accountable for results but aren't held to a clock.

Today's technology allows employees to occasionally work from home if they have a sick family member, for example.

“We believe that flexibility is a huge benefit,” Ohrt said. “We know that life happens, and we don't want people to miss out on that.”

FLEX TIME DOWN

That bucks a national trend, according to the most recent SHRM Employee Benefits Survey. That study noted a drop in companies offering flex time, from 57 percent in 2006 to 49 percent in 2010.

TELECOMMUTING UP

During that same time period, however, telecommuting part-time from home went from 26 percent to 34 percent. So it could be a matter of more tools now being available in the employer's tool kit to offer workers.

SALARIED HIT

Sue Bennett, compensation and benefits manager at Kirkwood Community College, which has 797 full-time employees, said the recession has been felt more on the salary side rather than affecting full-time employee benefits.

“We've kept our benefits pretty level over the past couple of years,” Bennett said. “We have a pretty rich benefits package here.”

OPTIONS CHANGE

Non-health care related benefits - such as tuition benefit for employees and use of the college's recreation center - won't likely change. Potential adjustments might include a long-term care option offered at a reduced group rate, but with employees paying the entire premium.

PTO: JURY'S STILL OUT

Kirkwood has bucked the paid time-off trend and keeps separate paid vacation, sick leave and other PTO options. The SHRM survey noted 47 percent of respondents offer full-time employees paid time off - vacation, sick leave and personal days all rolled into one - and 44 percent separate vacation time.