How do Your Employee Benefits Stack Up
Employee benefits represent a major portion of the compensation for many employees. According to the U.S. Department of Labor Bureau of Labor Statistics, the federal government agency that keeps track of employee pay and benefits trends, paid leave benefits such as paid holidays and vacations were the most commonly provided employee benefit, enjoyed by 77 percent of employees.
The BLS reports that 63 percent of private establishments offered health insurance to their workers during the study period of March 2005. Of the 70 percent of workers who had access to medical care plans, only 53 percent participated in such plans. Similarly, prescription drug coverages were available to 64 percent of workers but only 48 percent participated in the drug plan.
Dental insurance plans were offered to 46 percent of workers and vision care coverage was offered to 29 percent of workers, with participation rates at 36 percent and 22 percent respectively. The study did not offer reasons as to why workers elected or declined to participate in the various benefit offerings.
According to BLS data, 60 percent of workers had an opportunity to participate in a retirement plan yet only 50 percent chose to participate. Defined contribution plans were offered with a greater frequency than defined benefit plans.
Life insurance benefits were offered to 52 percent of workers and disability benefits were available to 40 percent of workers with only one or two percent electing not to participate in these benefits.
Workers in full time white collar or blue collar occupations were more likely to receive employee benefits compared to part time workers and workers in service occupations. Likewise, union workers were identified as having a higher level of benefits participation than non-union counterparts.
Good producing or manufacturing and larger establishments were more likely to offer benefit plans for workers that the smaller or service establishments.
Due to cost concerns, many employers continually evaluate their benefit plan offerings for employees. The rising costs of insurance coverages often prompt employers to re-bid insurance coverages annually, or to implement changes to coverages, deductibles, or employee contribution rates. Group insurance and retirement plan features are likely to continue to receive careful scrutiny by employers as such plans receive greater participation rates by an aging workforce. Data was drawn from the BLS report Employee Benefits in Private Industry in the United States, March 2005.
About the author: William S. Hubbartt is a human resources and privacy consultant St. Charles, IL. www.Hubbartt.com. He is the author of 8 books on management and privacy issues.
