1. SHRM Survey Findings: State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees
December 18, 2013

2. Introduction
This is part four of a series of SHRM survey findings examining employee benefits in the workplace.
The following topics are included in the six-part series titled State of Employee Benefits in the Workplace:
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
State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees ©SHRM 2013

3. Definitions
For the purpose of this survey, the following definitions were used:
Highly skilled employees are defined as employees with skills that are critical to the short- and long-term success of their operating unit or the organization.
High-performing employees are defined as employees ranked among the top 10 percent in their organization’s last performance review.
State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees ©SHRM 2013

4. Key Findings for Retaining Employees at All Levels
Leveraging Benefits to Retain Employees at All Levels of the Organization
Do organizations leverage their benefits program to retain employees at all levels of the organization? Less than one in five (18%) organizations reported leveraging their benefits program to retain employees.
What benefits offerings have been leveraged to retain employees at all levels of the organization? Organizations reported that health care (68%) and retirement savings and planning (57%) are the benefits most frequently leveraged to retain employees.
In the next three to five years, what benefits offerings will increase in importance to help organizations retain all employees? Organizations indicated that health care and retirement savings and planning are two of the benefits that would increase in importance with respect to retaining employees.
State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees ©SHRM 2013

5. Key Findings for Retaining Highly Skilled Employees
Leveraging Benefits to Retain Highly Skilled Employees
Are organizations leveraging their benefits program to retain highly skilled employees? One-fifth (20%) of organizations reported leveraging their benefits program to retain highly skilled employees.
What benefits offerings have been leveraged to retain highly skilled employees? Health care (63%), retirement savings and planning (59%), professional and career development (55%), and flexible working benefits (55%) are the benefits most frequently leveraged to retain these employees.
In the next three to five years, what benefits offerings will increase in importance to help organizations retain highly skilled employees? Organizations indicated that family-friendly benefits, retirement savings and planning, and flexible working benefits will increase the most in importance with respect to retaining highly skilled employees.
State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees ©SHRM 2013

6. Key Findings for Retaining High-Performing Employees
Leveraging Employee Benefits to Retain High-Performing Employees
Do organizations leverage their benefits program to retain high-performing employees? Less than one in five (19%) organizations reported leveraging their benefits program to retain high-performing employees.
What benefits offerings have been leveraged to retain high-performing employees? HR professionals reported both health care (63%) and retirement savings and planning benefits (63%) as the benefits they leverage the most when retaining these employees. Other commonly leveraged benefits include flexible working benefits (57%) and professional and career development benefits (49%).
In the next three to five years, what benefits offerings will increase in importance to help organizations retain high-performing employees? Organizations indicated that retirement savings and planning, flexible working benefits, professional and career development, and health care are the benefits that will increase in importance with respect to retaining high-performing employees.
State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees ©SHRM 2013

7. What do these findings mean for the HR profession?
The use of benefits as a retention tool is not widespread among HR professionals. However, considering that wage growth has been very weak in the post-recession economy, HR professionals cannot always use higher salaries as a draw for keeping talent. Many recruiters now advocate using a “total rewards” approach to retention, and they encourage leveraging an employer’s benefits package as part of that strategy.
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 retention strategy. Even with some uncertainty surrounding health care plans in connection with the Patient Protection and Affordable Care Act, HR professionals should view health care benefits, if offered at their employer, as a valuable tool for keeping workers in the fold.
Many 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. If this benefit is offered at their employer, HR professionals should highlight this aspect of their overall benefit plans as a tool to keep younger, talented workers at their organizations.
State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees ©SHRM 2013

8. Leveraging Benefits to Retain Employees
at All Levels of the Organization
State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees ©SHRM 2013

9. Over the past 12 months, has your organization had difficulty retaining employees at all levels of the organization?
Note: Respondents who answered “not sure” were excluded for this analysis.
State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees ©SHRM 2013

10. Comparisons by organization staff size
Over the past 12 months, has your organization had difficulty retaining employees at all levels of the organization?
Comparisons by organization staff size
Organizations with 100 to 2,499 employees are more likely than organizations with 1 to 99 employees to have had difficulty retaining employees at all levels of the organization over the past 12 months.
Comparisons by organization staff size
100 to 499 employees (28%)
500 to 2,499 employees (33%)
>
1 to 99 employees (12%)
Note: Only statistically significant differences are shown.
State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees ©SHRM 2013

11. Over the past 12 months, has your organization leveraged your benefits program to retain employees at all levels of the organization?
Note: Respondents who answered “not sure” were excluded from this analysis.
State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees ©SHRM 2013

12. Which of the following benefits has your organization leveraged to retain employees at all levels within your organization?
Note: Respondents who answered “not sure” and those whose organizations did not leverage their benefits program to retain employees at all levels within the organization were excluded from this analysis. Percentages do not equal 100% due to multiple response options.
State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees ©SHRM 2013

13. 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 retain all levels of employees?
Note: n = Respondents who answered “not sure” and whose organization did not leverage their benefits program to retain employees at all levels within the organization were excluded from this analysis.
State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees ©SHRM 2013

14. Leveraging Benefits to Retain Highly Skilled Employees
State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees ©SHRM 2013

15. Over the past 12 months, has your organization had difficulty retaining highly skilled employees?
Note: Respondents who answered “not sure” were excluded for this analysis.
State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees ©SHRM 2013

16. Comparisons by organization staff size
Over the past 12 months, has your organization had difficulty retaining highly skilled employees?
Comparisons by organization staff size
Organizations with 500 to 2,499 employees are more likely than organizations with 1 to 99 employees to have had difficulty retaining highly skilled employees over the past 12 months.
Comparisons by organization staff size
500 to 2,499 employees (40%)
>
1 to 99 employees (15%)
Note: Only statistically significant differences are shown.
State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees ©SHRM 2013

17. Over the past 12 months, has your organization leveraged your benefits program to retain highly skilled employees?
Note: Respondents who answered “not sure” were excluded for this analysis.
State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees ©SHRM 2013

18. Which of the following benefits has your organization leveraged to retain highly skilled employees?
Note: Respondents who answered “not sure” and whose organizations did not leverage their benefits program to retain highly skilled employees were excluded from this analysis. Percentages do not equal 100% due to multiple response options.
State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees ©SHRM 2013

19. 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 retain highly skilled employees?
Note: n = Respondents who answered “not sure” and whose organizations did not leverage their benefits program to retain highly skilled employees were excluded from this analysis.
State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees ©SHRM 2013

20. Leveraging Employee Benefits to Retain High-Performing Employees
State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees ©SHRM 2013

21. Over the past 12 months, has your organization had difficulty retaining high-performing employees?
Note: Respondents who answered “not sure” were excluded for this analysis.
State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees ©SHRM 2013

22. Comparisons by organization staff size
Over the past 12 months, has your organization had difficulty retaining high-performing employees?
Comparisons by organization staff size
Organizations with 500 to 2,499 employees are more likely than organizations with 1 to 99 employees to have had difficulty retaining high-performing employees over the past 12 months.
Comparisons by organization staff size
500 to 2,499 employees (34%)
>
1 to 99 employees (13%)
Note: Only statistically significant differences are shown.
State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees ©SHRM 2013

23. Over the past 12 months, has your organization leveraged your benefits program to retain high-performing employees?
Note: Respondents who answered “not sure” were excluded from this analysis.
State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees ©SHRM 2013

24. Which of the following benefits has your organization leveraged to retain high-performing employees?
Note: Respondents who answered “not sure” and whose organizations did not leverage their benefits program to retain high-performing employees were excluded from this analysis. Percentages do not equal 100% due to multiple response options.
State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees ©SHRM 2013

25. Within the next three to five years, what benefits offerings will increase or decrease in importance in your organization’s efforts to retain high-performing employees?
Note: n = Respondents who answered “not sure” and whose organizations did not leverage their benefits program to retain high-performing employees were excluded from this analysis. Percentages may not total 100% due to rounding.
State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees ©SHRM 2013

26. Organization Demographics
State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees ©SHRM 2013

27. Demographics: Organization Staff Size
State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees ©SHRM 2013

28. Demographics: Organization Sector
State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees ©SHRM 2013

29. Demographics: Organization Industry
Percentage
Professional, scientific and technical services
21%
Health care and social assistance
17%
Manufacturing
15%
Government agencies
12%
Finance and insurance
10%
Educational services 9%
Religious, grantmaking, civic, professional and similar organizations 5%
Accommodation and food services 4%
Administrative and support and waste management and remediation services
Construction
Mining
Transportation and warehousing
Arts, entertainment and recreation 3%
Information
Retail trade
Real estate and rental and leasing 2%
Repair and maintenance
Utilities
Whole trade
Agriculture, forestry, fishing and hunting 1%
Personal and laundry services
Other 7%
Note: n = 375. Percentages do not equal 100% due to multiple response options.
State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees ©SHRM 2013

30. Demographics: Other
Is your organization a single-unit organization or a multi-unit organization?
Does your organization have U.S.-based operations (business units) only, or does it operate multinationally?
Single-unit organization: An organization in which the location and the organization are one and the same.
39%
Multi-unit organization: An organization that has more than one location.
61%
U.S.-based operations only
80%
Multinational operations
20%
n = 381
n = 381
For multi-unit organizations, are HR policies and practices determined by the multi-unit headquarters, by each work location or by both?
What is the HR department/function for which you responded throughout this survey?
Corporate (company-wide)
73%
Business unit/division
16%
Facility/location
11%
Multi-unit headquarters determines HR policies and practices.
59%
Each work location determines HR policies and practices. 4%
A combination of both the work location and the multi-unit headquarters determines HR policies and practices.
37%
n = 244
n = 244
State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees ©SHRM 2013

31. SHRM Survey Findings: State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees
Survey Methodology
Response rate = 11%
441 HR professional respondents from a randomly selected sample of SHRM’s membership participated in this survey
Margin of error +/- 5%
Survey fielded May 3-22, 2013
State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees ©SHRM 2013

32. Additional SHRM Resources
Retention Resource Page
Staffing Management Resource Page
Managing for Employee Retention Toolkit
Retention: How Do I Calculate Retention? Is Retention Related to Turnover?
State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees ©SHRM 2013

33. About SHRM Research
For more survey/poll findings, visit For more information about SHRM’s Customized Research Services, visit Follow us on
Project leaders:
Christina Lee, researcher, SHRM Research
Project contributors:
Alexander Alonso, Ph.D., SPHR, vice president, SHRM Research
Evren Esen, manager, Survey Research Center, SHRM Research
Copy editor:
Katya Scanlan, SHRM Knowledge Center
State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees ©SHRM 2013

34. About SHRM
The Society for Human Resource Management (SHRM) is the world’s largest association devoted to human resource management. Representing more than 250,000 members in over 140 countries, the Society serves the needs of HR professionals and advances the interests of the HR profession. Founded in 1948, SHRM has more than 575 affiliated chapters within the United States and subsidiary offices in China, India and United Arab Emirates.
State of Employee Benefits in the Workplace—Leveraging Benefits to Retain Employees ©SHRM 2013