Offering Benefits to Part-Timers

We did a bit of research this week, for a client, on the topic of benefits for part-time employees.  Thought I'd share a few tidbits here.

The upshot:  About half or more of all organizations offer some benefits to part-time employees.  Bigger organizations are more likely to do it than smaller organizations.  Not-for-profit organizations are much more likely to do it than their for-profit counterparts.

The benefit most commonly offered to part-time employees (about 75%-80% of employers nationally) is the opportunity to participate in a defined contribution plan (i.e. a 401k).  On average these employers require a minimum number of hours  of just over 1,000 annually in order for a part-time employee to be eligible.  The next most common benefit offered to part-timers is paid vacation (about 70%-75% of employers nationally), with a similar average eligibility hurdle.

Based on the studies we considered, the benefit offered least often to part-time employees is disability coverage (less than 50% of employers nationally).

Corporate Volunteerism: More than a Perk - an Underutilized Development Tool

The Wall Street Journal has an article today on "the latest office perk":  paying employees for volunteer assignments.  Volunteer programs are seen as a particularly strong point in attracting and retaining Millenials.  But corporate volunteerism has much to offer beyond being an attraction and retention tool.

Today's HR professionals are facing increasing pressure to create the development opportunities necessary to prepare the next generation of leaders (a particularly urgent need with the boomers approaching retirement age), along with training budgets that have been flattened by a slowing economy.  New research from Deloitte suggests that the solution to this challenge may lie in an unexpected place: corporate volunteer programs.

According to Deloitte's Volunteer IMPACT survey, 91% of respondents agree that skills-based volunteering would add value to training and development programs, but only 16% of companies intentionally offer skills-based volunteer opportunities for employee development on a regular basis.  And out of those who do offer volunteer opportunities for the purpose of leadership and skill development, the vast majority limit the opportunities to management and above. 

Interesting possibilities here, it seems to me.

Spotlight on Innovative Work-Life Programs

Alliance for Work-Life Progress (AWLP), an entity of WorldatWork, recently recognized three organizations with its 2008 Work-Life Innovative Excellence Award.

This year's honorees are Accenture, Ernst & Young and USAA.  Their award winning programs are briefly described below:

Accenture – Future Leave

After extensive research on retaining a multigenerational workforce, Accenture realized that the "work experience" needed to look past daily or weekly flexibility and address career flexibility. “Future Leave” offers an innovative alternative to the traditional leave of absence. Under Future Leave, Accenture employees are assured of a job when they return, can continue their benefit coverage at the same premium, and have the option of budgeting for the time away by having a percentage of earnings placed in a separate account. The pilot program, which was introduced to more than 30,000 U.S. employees in March 2007, was adopted as an ongoing program in Accenture’s U.S. offices this past January.

Ernst & Young – The Parents Network

The Parents Network supports the needs of Ernst & Young (EY) parents of children with special needs. The increase in disabling conditions among children in the United States has major workplace implications. The Parents Network supports partners, staff and family members by offering a safe forum in which to share experiences, needs and concerns and receive support. The network offers insurance advocacy; educational program awareness; referral to Web site resources, providers, and local community groups; and sharing face-to-face, telephonically and electronically. They discuss career issues and personal and family adjustments related to parenting children with special needs. The experiences of these parents help maximize EY’s investment in benefits and services for all its people.

USAA – Personal Balance Tool

The Personal Balance Tool (PBT) was developed in 2006 as a one-stop, Web-based resource to help USAA employees and their family members achieve greater work-life balance. Users access the tool anonymously and can easily identify all available benefits that can help them achieve their personal and professional goals and successfully meet responsibilities at work and at home. Employees may choose whatever subject they seek to self-educate, including: Benefits information, USAA product information and other services Helpful articles and tip sheets Suggestions to manage personal and work priorities Guidance to address issues with a manager/supervisor Suggestions for seeking professional assistance, including the Employee Assistance Program provided through Value Options and Work/Life Referral Program provided through Harris Rothenberg, International

The State of Consumerism in Healthcare: SWOT Analysis Courtesy of EBRI

I try to do the occasional post on benefits when notable topics or studies (or even just quirky trends) cross my path.  I thought the findings from the  2007 EBRI/Commonwealth Fund Consumerism in Health Care Survey published by the Employee Benefits Research Institute, particularly their SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis of these newer health plan types, was worth summarizing and sharing here.  There is a lot interest in and attention being paid to these so-called consumer-driven plan approaches.  Some see these plans as the future of health insurance and a possible avenue for addressing runaway healthcare expenses; others believe them to target a very limited niche in the overall marketplace.

In the survey, two types of plans - consumer directed health plans (CDHPs) and high deductible health plans (HDHPs) are examined and compared with the more traditional health plan.  Strengths, weaknesses, opportunities and threats for the new plan types are summarized below:

• Strengths: The financial incentives embedded in these plans seem to be working, if at least modestly. Participants in CDHPs and HDHPs report being more cost-conscious about health care than participants in traditional plans. Seventy-four percent of CDHP participants and 60 percent of HDHP participants say that the terms of the health plan make them think about the cost when deciding whether to see a doctor or to fill a prescription, compared with 47 percent of traditional plan participants.
• Weaknesses:  The level of participant satisfaction with these new plans is significantly lower than for traditional plans. About 64 percent of participants in traditional plans are very or extremely satisfied with their plans, compared with 48 percent for CDHP participants and 35 percent for HDHP participants.
• Opportunities: The effectiveness of these plans could be enhanced if participants were more committed and assertive in managing their health and their use of health care services.  Because of the financial structure, they offer the possibility of being the most cost-efficient type of health plan. To improve results, however, will take the dual effort of greater engagement by workers and greater support by employers.
• Threats: Unless workers become more positive about the consumer-driven health plans meeting their needs, the enrollment may decline.

The study offers the following concluding statement:

There is somewhat of a chicken and egg problem with consumer-driven health plans. The relatively low enrollment in CDHPs and HDHPs affects the levels of familiarity and confidence. Some degree of skepticism is to be expected and will be hard to overcome unless prospective participants see more of their counterparts satisfied with the change. Enrollment will grow only if workers buy into the idea of the informed and engaged consumer and accept the financial structure. CDHPs and HDHPs are perhaps at a tipping point. The level of enrollment in these plans has grown significantly relative to previous years, but is still modest in absolute terms. That suggests that both workers and employers remain skeptical of them. These attitudes will change only if both the substance and perception are positive. If employers and workers change their mindsets, CDHPs and HDHPs can become a significant part of the U.S. health care financing system. But if there are no changes in employers’ and workers’ attitudes and behaviors, they will remain as a niche type of plan or decline in the future.

This continues to be an interesting trend to watch evolve.

Heartache Leave

Out there on the bleeding edge of employee benefit offerings, Japanese firm Hime & Company has announced its plans to provide employees with "heartache leave".  According to an article in the Economic Times (India), and timed to coincide with February's "season of love", the Tokyo based company offers those who've broken up with a partner:

• One day off per year for those younger than 24
• Two days off per year for those 25 to 29
• Three days off per year for those over 30

Interesting to note the underlying assumption about the resiliency of those of us over 30. 

The company's CEO Miki Hiradati had this to say about the new benefit:

Not everyone needs to take maternity leave, but with heartbreak, everyone needs time off, just like when you get sick.

Workers Wish for Birthdays Off!

When asked for their top choice for an employer-sponsored holiday among several days typically included as "floaters", birthdays were the #1 option selected by a wide margin in a national survey of 500 adult office workers commissioned by Blumberg Capital Partners.  The holiday question was part of a broader survey examining the impact of office building conditions on worker morale, productivity and motivation.

The complete rankings of the top choice holiday selected by participants is shown below:

• Own birthday - 46%
• Veterans' Day - 14%
• Presidents' Day - 10%
• Election Day - 10%
• Martin Luther King Jr. Day - 8%
• Halloween - 6%
• Valentine's Day - 2%
• Columbus Day - 2%
• St. Patrick's Day - 2%

This comes as no surprise to me.  I have encountered the strong preference for birthdays as a holiday in a number of organizations.  The preference seems particularly strong at those companies with one or more unions in place; workers rising from union ranks to take management jobs resent the loss of the birthday holiday (which I have been made to understand is a common union benefit).

As one gentleman put it to me:  "Working on your birthday is ... well, it's unAmerican!"

Apparently he has a lot of company.

Adoption Benefits Increasing in Prevalence

Adoption assistance is becoming an increasingly popular benefit.  This trend is addressed in an article "Adoption Policies that Work for Your Company" in the January 2008 issue of WorldatWork's workspan magazine.

The article notes that adoption assistance benefits vary substantially, and outlines example policies offered by companies on the 2006 listing of Working Mother magazine's Top 100 companies (of which 92% offer some adoption assistance policies):

Abbott Laboratories - Up to $10,000 in adoption reimbursement with no limit on number of adoptions per family; two weeks' paid leave for travel and bonding with child.

Avon Products Inc. - $10,000 average adoption reimbursement; eight weeks of fully paid leave for adoption (same as birthmothers receive).  Secondary caregivers (including dads) are given two weeks of paid leave following the birth or adoption of a child.

Bank of America - Up to 26 weeks of parental leave, with eight of those weeks fully paid (for all new moms with at least 1 year of service); up to $8,000 in reimbursements per child.

Eli Lilly and Co. - Up to 64 job-guaranteed weeks off (15 months), with one fully paid (after one year of service); $10,000 average adoption reimbursement.

Fannie Mae - Resource and referral service to investigate adoption options; $10,000 average adoption reimbursement; four weeks of fully paid leave for new adoptive parents.

Timberland Co. - $12,000 adoption reimbursement; two weeks of fully paid leave for new adoptive parents.

Verizon Communications/Verizon Wireless - $10,000 in adoption reimbursement; adoptive parents can phase back into work on a reduced schedule and keep full benefits.

New Twist on Education Benefits: IBM to Launch "Learning Accounts"

IBM is looking to launch a new kind of education benefit; a 401(k)-type program that will fund accounts employees can use for professional education, according to an article in this month's CFO magazine. 

According to the article:

IBM's proposed "learning accounts" would allow U.S.-based employees with five years of service to contribute up to $1,000 a year, with IBM matching 50 cents on the dollar.  The program doesn't begin until next July, which will give IBM time to pursue another wrinkle: getting the government to pony up a tax break by making contributions exempt from income taxes, a la 401(k) plans.  Rep. Rahm Emanuel (D-Ill) has already proposed such legislation and IBM is bringing its lobbying powers to bear.

IBM will continue to spend $600 million a year on tuition reimbursement, but says this new option is needed so that "our employees get an expanded skill-set to be effective in a global economy," says Stanley Litow, vice president of corporate citizenship and corporate affairs.  "People need training for the jobs that may exist in the future."

Commuter Benefits Programs - A "Green" Perk

An article in today's New York Times discusses the growing popularity of commuter benefits programs, whereby tax incentives created by Congress in the 1990's allow companies to create tax favored incentives to encourage the use of mass transit and car pooling.  Many organizations are including these programs as part of an overall "green" initiative.

According to the Times:

It allows companies to cover up to $110 a month of a worker's commuting costs via bus, subway, train or ferry or lets workers take up to $110 a month in pre-tax money for that purpose.  A similar amount can be contributed to each rider in van pools for six or more passengers.

And:

If employers fund the program, they get a tax deduction for the expense; when the money is set aside from employees' paychecks, employers save money because the amount is not subject to payroll taxes.  In many cases, state and local taxes don't apply either.

Employers looking for more information about commuter benefits programs (also referred to as transit incentive programs or TRIPs) can check out the Web site maintained by the Federal Transit Administration of the Department of Transportation, under the heading Commuter Choice Program.

Perks Keep Executives Plugged In

The most popular perks offered to executives, according to the 2007/2008 Executive Compensation Survey recently released by CompData Surveys, are those that keep them tethered to the office (and who is surprised by this?).  According to the survey of nearly 5,300 employers, 63% offer cell phones to executives as perks, and 44% provide laptops or home PCs.

Other perks offered include:

• Car allowance - 33%
• Company car - 30%
• Supplemental life insurance - 26%
• Voluntary deferred compensation - 20%
• Annual physical exam - 18%
• Supplemental disability program - 17%
• Club membership - 16%
• Supplemental executive retirement plans - 11%
• Supplemental medical insurance - 6%
• Supplemental vacation - 5%
• Legal counseling - 5%
• Airline VIP lounge membership - 3%
• Dependent tuition reimbursement - 3%