Most Workers Content with Compensation Package, Yet Many Yearn for Flexible Schedules
May 17 2006 - 7:00AM
PR Newswire (US)
Hudson Survey of 10,000 Reveals Trends in Pay, Health &
Retirement Plans, and Non-Traditional Benefits NEW YORK, May 17
/PRNewswire/ -- Even though three out of four (72%) U.S. workers
claim to be very or somewhat satisfied with their compensation, a
large portion (44%) of the same sample say they would change their
mix of cash and benefits if they could. These findings come from
Hudson's Transforming Pay Plans: 2006 Compensation and Benefits
Report. This survey, based on the responses of 10,000 workers,
examines employee attitudes about traditional and non-traditional
pay and benefit programs. "The survey reveals a work force with
shifting compensation demands that can be hard for employers to
decipher and even harder to satisfy," stated Peg Buchenroth,
managing director, compensation and benefits, Hudson Highland
Group. "Though cash is still king, workers are coming to grips with
paycheck-squeezing realities like higher healthcare costs and
self-funded retirement programs. At the same time, they are placing
much greater value on less tangible, lifestyle oriented benefits."
Given their choice of unconventional benefits, most employees would
select a more flexible work schedule (33 percent) or additional
family benefits (22 percent), including parental leaves and
personal days, over job training (13 percent) or supplemental
insurance (16 percent). "People are more interested in having a
well-balanced life," added Buchenroth. "Many individuals find
elements such as flex-schedules, telecommuting, on-site daycare or
more personal time to have greater importance than cash. In fact,
employees may forgo additional cash in order to have an improved
work-life balance or better opportunities for career advancement."
Nonetheless, cash is still and always will be most important, so
employers are turning to pay-for-performance strategies to
compensate top talent. However, organizations are slow to implement
these systems or are ineffectively communicating them to their
staff. In fact, when asked about the factors influencing
compensation at their company, 57 percent of workers believe tenure
determines pay. Just 35 percent report that workers who do a better
job earn more. Additionally, only one-quarter is eligible for
earning a commission or bonus on top of their salary. Managers have
a slightly different perspective on this issue, as nearly half (48
percent) believe that their organization pays their top performers
the best, opposed to only 31 percent of non-managers.
"Performance-based incentives are ineffective if employees do not
realize there are rewards for achieving their objectives, no matter
their position," stated Robert Morgan, COO, Hudson Talent
Management. "By clearly communicating these rewards, companies not
only entice their work force to meet strategic goals, but top
performers are also likely to stay longer." Another aspect of
compensation packages that is a major concern for employers and
employees alike is health insurance. Faced with requests from
one-fifth of workers wanting better benefits on top of excruciating
cost pressure, companies are responding by offering consumer-driven
healthcare (CDH) plans. However, these alternatives appear to be
unappealing options to most workers, as only one-third have a
positive impression of these programs, particularly Health Savings
Accounts (HSAs). The remainder have an unfavorable opinion (34
percent) or are unsure about them (29 percent). Of those who work
for an organization that offers an HSA (32 percent), only 40
percent participate. Additional information about the Hudson
compensation survey and the Transforming Pay Plans: 2006
Compensation and Benefits Report can be found at
http://www.hudson-index.com/. The survey is based on a national
phone poll of 10,000 U.S. workers conducted March 20-26, 2006 and
was compiled by Rasmussen Reports, LLC, an independent research
firm (http://www.rasmussenreports.com/). The margin of sampling
error for a survey based on this number of interviews is
approximately +/-1 percent with a 95 percent level of confidence.
Hudson, one of the world's leading professional staffing,
outsourcing and talent management solutions providers, also
publishes the Hudson Employment Index(SM), a monthly measure of the
U.S. work force's confidence in the employment market. The next
Hudson Employment Index will be released on May 31. Hudson Hudson
delivers specialized professional staffing, outsourcing, and talent
management solutions worldwide. From single placements to total
solutions, the firm helps clients achieve greater organizational
performance by assessing, recruiting, developing and engaging the
best and brightest people for their businesses. Hudson is a
division of Hudson Highland Group, Inc. one of the world's leading
professional staffing, retained executive search and talent
management solutions providers. The company employs more than 3,800
professionals serving clients and candidates in more than 20
countries through its Hudson and Highland Partners businesses. More
information is available at http://www.hudson.com/. DATASOURCE:
Hudson CONTACT: Sarah Kafenstok of Hudson, +1-312-795-4202, ; or
Anshula Ahluwalia of Ogilvy Public Relations, +1-312-397-6074, Web
site: http://www.hudson.com/ http://www.hudson-index.com/
http://www.rasmussenreports.com/
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