Hewitt Survey Finds U.S. employers offer employees Généreux

 

Friday, Mar 20,2009, 11:52:32 AM   Click:

Copyright: Business Wire
Source: Business Wire
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Business Editors

LINCOLNSHIRE, IL - (BUSINESS WIRE) - March 19 2009 - With many economists predicting a bleak short-term outlook for economic recovery, the possibility of further layoffs are likely a reality for thousands of Americans . While job loss is not good news, a new survey by Hewitt Associates, a human resources consulting and outsourcing, found that pay for most of the affected employees in large companies U.S. remained unchanged. However, companies continue to seek other ways to cut costs, benefits, like many others, are likely to be reduced.

Hewitt's survey of 228 large U.S. companies, representing 4.5 million employees revealed that more than 80 percent of employers have laid off over the past 24 months, and 45 percent intend to make further reductions over the next 12 months. The good news for those affected is that employees start programs remained virtually unchanged by the economic downturn. More than half (51 percent) of companies offer a standard one to two weeks pay for each year of service, and another third (33 percent) vary their payments based on a formula that generally combines years of service, salary level and / or grade.

In addition to cash, most companies provide at least one advantage after separation in May, which include health care coverage, retirement benefits, disability, financial assistance or insurance life. Not surprisingly, health coverage is the most common benefits offered. Thirty percent of all businesses to provide health care during the period of rupture and offer COBRA at the end of the period of rupture. Over a quarter (26 percent) provide COBRA coverage immediately, with the employee paying the full premium. Most companies (72 percent) also failed to provide outplacement assistance for employees.

But as companies seek to make further cost reductions in response to economic conditions, many say they will look more closely at their pay. According to Hewitt's survey, one in five (20 percent) plan to make changes to their plans for departure, and nearly a third (31 percent) are uncertain. Among these modifications, 43 percent plan to reduce payments in cash, and one in five (21 percent) plan to reduce benefits.

"In the midst of efforts to reduce employer costs, employee programs were largely spared, in part because these benefits are considered as a means to maintain the goodwill of the affected employees. In addition, most companies do not include any simply not the true cost impact of these programs on their results, "said Lori Wisper, senior compensation consultant at Hewitt Associates. "Organizations now have to dig deeper into their costs and forcing many employers to look more closely at the costs and competitiveness of their town. In doing so, they realize they May be able to make changes not only to better adapt to other employers, but also help reduce costs. "

Other key


Most companies (80 percent) of minimum and maximum limits on the cash portion of their pay. The average minimum is 4.5 weeks of pay, and the average maximum is 40 weeks pay.
The regularity with which organizations are reducing their workforce has meant that most (72 percent) now have formal, written starting in place policies for large employee populations. In the past, these practices vary more based on circumstances.
A majority of companies (87 percent) failed to require employees to sign a waiver that includes specific conditions. Most exemptions including a dispute hesitate and other conditions, such as non-disclosure and non-disparagement agreements.

About Hewitt Associates Hewitt Associates (NYSE: HEW) provides organizations worldwide with expert advice in human resources and outsourcing solutions to help them anticipate and solve their most complex benefit, talent, and financial difficulties. Hewitt consults with companies to design and implement a wide range of human resources, retirement, investment management, health management, compensation, and strategies for talent management. As a leading provider of outsourcing, Hewitt manages health care, pension, payroll and other HR programs to millions of employees, their families, and retirees. With a history of exceptional customer service since 1940, Hewitt has offices in 33 countries and employs approximately 23,000 employees who help make the world a better place to work. For more information, please visit www.hewitt.com.



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