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1/30/05
SURVEY Ask corporate human resources executives at big firms what their top two headaches were in 2004, and they are likely to say keeping talent and finding new ways to reduce the cost of employee benefits. When Authoria, a Waltham human capital and performance management firm, surveyed more than 200 human resources executives whose companies employ 100 to 2,500 workers, it found that 76 percent of the executives at the biggest firms were especially concerned about retaining and developing talent, a 24 percent increase over 2003. The survey, conducted with the Gantry Group, a Concord market research company, also found that the second biggest concern was finding ways to decrease employee benefits. This year, US employers might get a bit of relief in 2005 from such costs, but it won't be much. According to the 2005 Towers Perrin Health Care Cost Survey, healthcare costs will increase by 8 percent this year, representing the first "significant break in the five-year string of double-digit increases" that companies have faced since 2000. Between 2000 and 2004, for example, employers saw healthcare costs increase by 12 to 16 percent. But even though increases will be in the single digits this year, that doesn't mean they're going away, said Towers Perrin. "The cumulative effect of soaring costs over the past five years has created a bigger cost base," the company said. "That means that, while the 2005 percentage increase creates an appearance of lower costs, the increase in actual dollars is similar to past years." Overall, US employers are spending 63 percent more for healthcare insurance now than they spent four years ago, and 87 percent more than they spent eight years ago. According to Towers Perrin, the increases might seem lower this year because many employers have instituted cost-cutting measures. Employers have shifted more of the burden for health coverage to workers, for example. They've also instituted wellness programs to encourage workers to lose weight, quit smoking and develop better habits. Still, the underlying reasons for the high cost of healthcare have not disappeared. They include the price tag for creating and developing new treatments, medical technologies, and drugs. Take away other cost-cutting measures like medical plan redesign and new forms of managed care and the real cost of healthcare this year will be about 10 percent, said Towers Perrin. Employees are also reeling from the burden of healthcare coverage. They're paying 56 percent more today than they spent four years ago, and 71 percent more than they spent eight years ago, said Towers Perrin.
WORKPLACE In this era of mergers, layoffs and outsourcing, it's not surprising that some workers aren't enthused about their jobs - or their bosses. And the fact that Generations X and Y are not as loyal to employers as their parents were is yet another reflection of our times. With their parents' pink slips still clear in their minds, younger workers are shifting away from the all-consuming career and opting for personal and professional balance instead. Results from a new study seem to support the premise that many workers are losing faith in their employers. Released by Harris Interactive Inc., the New York market research firm, the survey of 7,718 working adults found that more than half don't trust their bosses. Others feel they've been treated unfairly, and complain of being locked into dead-end jobs. Thirty-six percent of the people surveyed said their managers are dishonest and do not act with integrity. Twenty- nine percent don't believe top managers care about helping them to advance or improve their skills, and more than 30 percent are in jobs that aren't going anywhere. Ken Dychtwald, founder of Age Wave, a San Francisco organization that counsels the government and private employers on services and policies that impact baby boomers and older adults, believes the findings point to a profound shift in the way people see their employers and jobs. He says the accounting scandals, coupled with the sluggish economy and layoffs, contribute to the negative views. The survey, sponsored by 24 US corporations, including Age Wave, also reveals that younger workers are less likely to feel loyal to employers and are more distressed about the state of corporate America today. In addition, many of the workers were more concerned about job security, healthcare coverage and professional development than a fatter paycheck, suggesting that employers will have to offer far more than extra pay to retain talent. Overall, only 33 percent of the employees were satisfied with their jobs, and 12 percent were extremely satisfied. Just 20 percent felt passionate about their work, and less than 15 percent described their work as energizing. And only 31 percent reported their managers or employers inspired them to do their best work. According to the study, managers seem to feel the same way. One-third didn't care about their employers; another third said they would be willing to promote their companies as great places to work. Just over a third said the companies they work for have inspired them. The happiest employees? Workers at small companies. In all, 49 percent were satisfied with their jobs, 44 percent felt energized by their jobs, and 53 percent were passionate about the work they do, the study said. Of the workers at small firms, 64 percent really cared about their employers. Just 47 percent of the workers at big companies did. Sixty-one percent of the employees at small companies routinely give their best effort because they want to see their employer succeed. Only 43 percent of the workers at big firms agreed with that statement. Seventy-four percent of the big firms allocate raises each year. However, only 34 percent of the small firms do so yearly. Eighty percent of the big corporations provide life insurance, but only 31 percent of the small companies do. Of the workers at small firms, 64 percent said they cared about their employers. Just 47 percent of the workers at big companies said that. And 61 percent of the employees at small companies said they routinely give their best effort because they want to see their employer succeed. Only 43 percent of the employees at big firms agreed with that statement. Diane E. Lewis can be reached at .
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