Transcript SHRM Survey Findings: Employee Benefits in California—Leveraging Benefits to Recruit Employees April 23, 2014

SHRM Survey Findings: Employee Benefits in
California—Leveraging Benefits to Recruit Employees
April 23, 2014
Introduction
• This is part five 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:
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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 Recruit Employees ©SHRM 2014
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Definition
• For the purpose of this survey, the term highly skilled employees is defined as employees with skills
that are critical to the short- and long-term success of their operating unit or the organization.
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Key Findings for Recruiting Employees at All Levels
California
Leveraging Benefits to Recruit Employees at All Levels of the Organization
• Do organizations leverage their benefits program to recruit employees?
Thirty percent of organizations in California reported having difficulty recruiting employees; onethird (33%) indicated leveraging their benefits program to recruit employees.
• What benefits offerings have been leveraged to recruit employees? Similar
to the overall findings, health care (85%) and retirement savings and planning (61%) still remain the
top two benefits that organizations in California most frequently leverage to recruit employees.
These benefits are followed by flexible working benefits (39%), leave benefits (38%), and
professional and career development benefits (37%).
• What benefits offerings will increase in importance to help recruit
employees in the next three to five years? Organizations indicated that retirement
savings and planning benefits (69%), health care benefits (62%), and flexible working benefits
(62%) are the benefits that will increase in importance the most with respect to recruiting
employees in California.
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Key Findings for Recruiting Highly Skilled Employees
California
Leveraging Benefits to Recruit Highly Skilled Employees
• Are organizations leveraging their benefits program to recruit highly skilled employees?
Although more than one-half (54%) of organizations in California indicated having difficulty in
recruiting highly skilled employees, only 35% reported leveraging their benefits program to recruit
these applicants.
• What benefits offerings have been leveraged to recruit highly skilled employees? Health care
(73%) was the benefit most frequently leveraged to recruit these employees in California.
Compared to the overall findings, many benefits were leveraged less frequently by organizations in
California, with the largest difference of 15 percentage points for flexible working benefits (40% in
California, 55% nationally).
• In the next three to five years, what benefits offerings will increase in importance to help
organizations recruit highly skilled employees? In 2013, HR professionals in California
organizations indicated that retirement savings and planning benefits (70%) and heath care (63%)
would be the most important benefits to leverage during recruitment.
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What do these findings mean for the HR profession?
• California organizations use benefits as a recruitment tool at a higher rate than the rest of the
United States (33%, compared with 26% nationally). Those are not significant rates, but many
recruiters now advocate using a “total rewards” approach to attracting new employees, and they
encourage leveraging an employer’s benefits package as part of that strategy. HR professionals
cannot always use higher salaries as a draw for new talent because wage growth has been weak in
the post-recession economy.
• With medical costs on the rise and many workers unprepared financially for retirement, HR
professionals should consider leveraging health care benefits and retirement savings and planning
benefits as part of their recruitment strategy. Even with some uncertainty surrounding health care
plans in connection with the Patient Protection and Affordable Care Act, HR professionals should
view this benefit, if offered at their employer, as a valuable tool for attracting workers.
• Several studies have shown that members of the Millennial generation, or those born between 1982
and 2002, place high value on flexible work schedules and managing their own time. Many HR
professionals have recognized this trend: 40% of California organizations and 55% of organizations
nationally leveraged flexible working benefits to recruit highly skilled employees in 2013. If this
benefit is offered at their employer, HR professionals should highlight this aspect of their overall
benefits plans as a tool to attract younger, talented workers to their organizations.
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Leveraging Benefits to Recruit
Employees at All Levels of the
Organization
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Over the past 12 months, has your organization had
difficulty recruiting employees at all levels of the
organization?
30%
Yes
26%
California (n =
310)
Overall (n = 351)
70%
No
74%
Note: Respondents who answered “not sure” were excluded from this analysis.
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Over the past 12 months, has your organization
leveraged your benefits program to recruit employees
at all levels of the organization?
33%
Yes
California (n =
298)
Overall (n =
341)
26%
67%
No
74%
Note: Respondents who answered “not sure” were excluded from this analysis.
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Which of the following benefits has your organization
leveraged to recruit employees at all levels within
your organization?
85%
81%
Health care
Retirement
savings and
planning
61%
70%
39%
Flexible working
benefits
43%
38%
Leave benefits
50%
Professional and
career
development…
Housing and
relocation
benefits
Note: Only respondents whose
within the organization were
analysis. Percentages do not
Overall (n = 88)
37%
45%
29%
Preventive health
and wellness
Family-friendly
benefits
California (n = 97)
33%
25%
33%
20%
24%
organizations leveraged their benefits program to recruit employees at all levels
asked this question. Respondents who answered “not sure” were excluded from this
equal
100%Benefits
due to multiple
response options.Benefits to Recruit Employees ©SHRM 2014
Employee
in California—Leveraging
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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
recruit all levels of employees?
Retirement savings
and planning
29%
69%
2%
Health care
62%
37%
1%
Flexible working
benefits
62%
37%
1%
Professional and
career development
benefits
Preventive health
and wellness
49%
Family-friendly
benefits
Increase in importance
7%
3%
54%
34%
14%
0%
44%
43%
Leave benefits
Housing and
relocation benefits
49%
51%
63%
64%
2%
21%
Remain the same
Note: n = 76-94. Only respondents whose organizations leveraged their benefits program to recruit employees at
all levels within the organization were asked this question. Respondents who answered “not sure” were excluded
from this analysis. Percentages
may notBenefits
equal 100%
due to rounding.
Employee
in California—Leveraging
Benefits to Recruit Employees ©SHRM 2014
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Leveraging Benefits to
Recruit
Highly Skilled Employees
Employee Benefits in California—Leveraging Benefits to Recruit Employees ©SHRM 2014
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Over the past 12 months, has your organization had
difficulty recruiting highly skilled employees?
54%
Yes
50%
California (n =
309)
Overall (n =
353)
46%
No
50%
Note: Respondents who answered “not sure” were excluded from this analysis.
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Over the past 12 months, has your organization
leveraged your benefits program to recruit highly
skilled employees?
35%
Yes
California (n =
296)
Overall (n =
343)
30%
65%
No
70%
Note: Respondents who answered “not sure” were excluded from this analysis.
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Which of the following benefits has your organization
leveraged to recruit highly skilled employees?
73%
70%
Health care
48%
Retirement savings
and planning
61%
Professional and
career development
benefits
45%
41%
40%
Flexible working
benefits
55%
46%
29%
33%
Housing and
relocation benefits
Family-friendly
benefits
Preventive health
and wellness
Overall (n = 104)
32%
Leave benefits
California (n = 103)
22%
35%
21%
25%
Note: Only respondents whose organizations leveraged their benefits program to recruit highly skilled employees
were asked this question. Respondents who answered “not sure” were excluded from this analysis. Percentages do
not equal 100% due to multipleEmployee
responseBenefits
options.in California—Leveraging Benefits to Recruit Employees ©SHRM 2014
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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
recruit highly skilled employees?
Retirement savings
and planning
Health care
56%
Flexible working
benefits
55%
Family-friendly
benefits
Housing and
relocation
benefits
2%
51%
3%
55%
29%
Increase in importance
0%
42%
41%
24%
1%
44%
46%
Preventive health
and wellness
2%
36%
63%
Professional and
career development
benefits
Leave benefits
28%
70%
3%
2%
69%
61%
14%
Remain the same
Note: n = 83-98. Only respondents whose organizations leveraged their benefits program to recruit highly skilled
employees were asked this question. Respondents who answered “not sure” were excluded from this analysis.
Percentages may not equal 100%Employee
due to rounding.
Benefits in California—Leveraging Benefits to Recruit Employees ©SHRM 2014
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Demographics
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Demographics: Organization Staff Size
1 to 99 employees
31%
100 to 499 employees
36%
500 to 2,499
employees
18%
2,500 to 24,999
employees
25,000 or more
employees
10%
5%
n = 310
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Demographics: Organization Sector
Privately owned
for-profit
60%
Nonprofit
organization
19%
Publicly owned
for-profit
13%
Government
sector
Other
7%
2%
Note: n = 322. Percentages do not equal 100% due to rounding.
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©SHRM 2014
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Demographics: Organization Industry
Professional, scientific and technical services
Health care and social assistance
Manufacturing
Finance and insurance
Government agencies
Educational services
Transportation and warehousing
Retail trade
Whole trade
Real estate and rental and leasing
Accommodation and food services
Administrative and support and waste management and remediation services
Construction
Information
Utilities
Religious, grantmaking, civic, professional and similar organizations
Mining
Arts, entertainment and recreation
Repair and maintenance
Agriculture, forestry, fishing and hunting
Personal and laundry services
Other
Percentage
24%
13%
12%
10%
8%
8%
7%
7%
6%
5%
4%
4%
4%
4%
4%
3%
2%
2%
2%
2%
1%
9%
Note: n = 328. Percentages do not equal 100% due to multiple response options.
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Demographics: Other
Does your organization have
U.S.-based operations (business
units) only, or does it operate
multinationally?
U.S.-based operations only
79%
Multinational operations
21%
n = 324
Is your organization a single-unit
organization or a multi-unit organization?
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%
n = 325
What is the HR department/function
for which you responded throughout
this survey?
Corporate (company-wide)
78%
Business unit/division
15%
Facility/location
16%
Note: n = 234. Percentages do not equal 100%
due to rounding.
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
59%
practices.
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%
Note: n = 234. Percentages do not equal 100% due to
rounding.
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©SHRM 2014
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SHRM Survey Findings: Employee Benefits in
California—Leveraging Benefits to Recruit
Employees
Survey Methodology
• 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
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Additional SHRM Resources
• SHRM Research Findings: State of Employee Benefits in the Workplace—
Leveraging benefits to recruit employees
• SHRM Research Findings: The Ongoing Impact of the Recession—California
Recruiting and Skill Gaps
• SHRM Research Findings: Employee Benefits Landscape in California
• California Resources Page
• Managing the Hiring Process in California
• Benefits Underused to Recruit, Retain, SHRM Finds
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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
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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.
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