Attraction and Retention: The Impact and Prevalence of Work-Life & Benefit Programs. research. A Research Report by WorldatWork October 2007

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1 Attraction and Retention: The and Prevalence of Work-Life & Benefit Programs research A Research Report by WorldatWork October 2007

2 About WorldatWork Media Contact: Marcia Rhodes N. rthsight Blvd. Scottsdale, Arizona / Toll free: 877/ Fax: 480/ WorldatWork Any laws, regulations or other legal requirements noted in this publication are, to the best of the publisher s knowledge, accurate and current as of this report s publishing date. WorldatWork is providing this information the understanding that WorldatWork is not engaged, directly or by implication, in rendering legal, accounting or other related professional services. You are urged to consult an attorney, accountant or other qualified professional concerning your own specific situation and any questions that you may have related to that. portion of this publication may be reproduced in any form out express written permission from WorldatWork.

3 Attraction and Retention The and Prevalence of Work-Life and Benefit Programs A Survey Brief by WorldatWork Introduction & Methodology In September 2007, WorldatWork conducted a survey to identify the prevalence and perceptions of s that are used to attract and/or retain talent, a specific focus on benefit and work-life s. The findings presented in this report confirm many of the assumptions surrounding leading-edge and/or innovative practices, as well as show the overall perceptions of many widespread attraction and retention s. Fixed and variable compensation s specifically were excluded from this survey. This survey was sent electronically to 4,625 WorldatWork members in the United States. There were 649 responses received for a 14-percent response rate. A typical member of WorldatWork is employed at the manager/assistant director level and above and has at least 5 years of experience in HR or compensation. In addition, he or she is most frequently employed at the headquarters of a large company; 95% of the Fortune 500 employ a member of WorldatWork. Results of individual questions are presented in the Detailed Survey Results section. Please note that the frequencies of responses may not always equal 100 percent due to rounding. Executive Summary Employers recognize that total rewards s beyond compensation are needed to attract, motivate and retain today s workforce. Most organizations offer a wide array of benefit and work-life s to attract and retain employees. Many of these s are low-cost but highly valued by employees. This perceived value by employees is essential for a total rewards strategy to be successful. This survey identifies 41 separate total rewards s and reports the perceived impact on attraction and retention in the participating organization s talent pool. While not surprising, paid vacation and medical plans topped the list of s rated as having a high impact on attraction and retention. Defined benefit plans, flex-time and telecommuting also were rated as high impact s. In today s workforce, many attraction and retention s are common, but cutting-edge s can be the differentiator that gives an organization the advantage in the war for talent. Attraction and Retention Practices WorldatWork, October

4 Key Highlights Ninety-five percent of survey respondents rated medical plans as either having moderate or high impact on attracting employees. Only 1 percent indicated that they do not offer a medical plan. More than 90 percent of participants said that paid vacation has a moderate to high impact on attraction and retention. A full 100 percent of participating organizations have a paid vacation in place. Thirty-eight percent of respondents reported not having a telecommuting in place. Of the 62 percent of organizations that do offer telecommuting, almost half (46 percent) said the has a high impact on employee retention. Emergency back-up dependent care services, on-site childcare and sabbaticals are offered by less than 30 percent of participating organizations. The 25 percent of organizations that offer on-site childcare s rated it as having a high impact on attraction (41 percent) and retention (43 percent). While health care and dependent care flexible spending accounts are used by more than 95 percent of organizations, these s are perceived to have minimal impact on attraction and retention. Most wellness s are utilized by about half of the survey population. In particular, health screenings, smoking cessation assistance s, and weight and stress management s report that these s have only a minor effect, if any, on attracting and retaining talent. Detailed Survey Results Workplace Flexibility Flex-time Part-time Schedules Compressed Workweek Telecommuting Job Sharing Phased Retirement Degree of on Attraction and Retention Attraction 2% 14% 49% 35% Retention 0% 7% 43% 49% Attraction 4% 23% 44% 28% Retention 3% 16% 45% 36% Attraction 4% 19% 40% 37% Retention 2% 14% 41% 43% Attraction 4% 20% 38% 38% Retention 2% 14% 39% 46% Attraction 10% 46% 35% 9% Retention 7% 35% 43% 16% Attraction 17% 41% 34% 8% Retention 8% 19% 45% 28% 82% 84% 52% 62% 36% 32% Attraction and Retention Practices WorldatWork, October

5 Health And Wellness Degree of on Attraction and Retention Medical Plan Attraction 0% 6% 36% 59% Retention 1% 11% 38% 50% Dental Plan Attraction 3% 22% 48% 27% Retention 7% 26% 45% 23% Healthcare Flexible Spending Accounts Attraction 6% 43% 42% 10% Retention 11% 45% 37% 7% Dependent Care Flexible Spending Attraction 8% 45% 40% 8% Accounts Retention 12% 47% 35% 7% Employee Assistance Programs Attraction 25% 51% 21% 3% Retention 23% 49% 23% 5% Weight Management Programs Attraction 35% 52% 12% 2% Retention 31% 50% 17% 3% Stress Management Programs Attraction 35% 51% 12% 2% Retention 26% 49% 21% 4% Health Screenings Attraction 31% 45% 20% 4% Retention 23% 46% 27% 5% On-Site Nurse Attraction 32% 45% 19% 4% Retention 28% 45% 20% 7% Smoking Cessation Assistance Attraction 38% 48% 12% 2% Retention 33% 49% 17% 1% 99% 99% 96% 95% 94% 55% 50% 65% 36% 58% Caring for Dependents Degree of on Attraction and Retention On-site Child Care Attraction 7% 16% 37% 41% Retention 5% 19% 33% 43% Dependent Care Referral and Resource Attraction 28% 52% 16% 5% Services Retention 29% 47% 20% 4% Emergency Back-up Dependent Care Attraction 16% 42% 33% 9% Services Retention 17% 31% 39% 12% Mother s Privacy/Lactation Rooms Attraction 31% 52% 14% 4% Retention 24% 46% 25% 5% Adoption Assistance Services Attraction 19% 51% 26% 4% Retention 18% 52% 25% 5% 25% 45% 24% 59% 44% Attraction and Retention Practices WorldatWork, October

6 Paid and Unpaid Time Off Paid Vacation Paid Maternity Leave Paid Paternity Leave Paid Adoption Leave Sabbaticals Degree of on Attraction and Retention Attraction 1% 6% 30% 63% Retention 1% 8% 35% 56% Attraction 6% 20% 44% 30% Retention 4% 23% 39% 35% Attraction 14% 40% 31% 16% Retention 13% 36% 33% 18% Attraction 15% 40% 33% 12% Retention 12% 39% 35% 15% Attraction 17% 37% 27% 20% Retention 14% 34% 25% 27% 100% 74% 47% 50% 29% Retirement Defined Benefit Plan Defined Contribution Plan Profit Sharing Plan Degree of on Attraction and Retention Attraction 4% 18% 38% 40% Retention 1% 9% 32% 58% Attraction 0% 11% 46% 43% Retention 2% 12% 46% 41% Attraction 2% 17% 47% 35% Retention 2% 17% 44% 36% 56% 97% 44% Financial Support Degree of on Attraction and Retention Financial Planning Services and Attraction 17% 56% 22% 5% Education Retention 18% 49% 26% 7% Adoption Reimbursement Attraction 19% 52% 26% 4% Retention 15% 53% 26% 6% 529 College Saving Plans Attraction 26% 48% 22% 5% Retention 26% 52% 17% 5% 57% 37% 33% Culture Change Initiatives Diversity/Inclusion Initiatives Degree of on Attraction and Retention Attraction 10% 38% 38% 14% Retention 11% 38% 37% 14% 69% Attraction and Retention Practices WorldatWork, October

7 Coaching/Mentoring Leadership Training Formal or Informal Mentoring Programs Degree of on Attraction and Retention Attraction 7% 38% 42% 13% Retention 4% 26% 44% 26% Attraction 7% 41% 40% 12% Retention 4% 29% 44% 24% 87% 70% Learning and Advancement Opportunities Tuition Reimbursement Career Ladders and Pathways Job Rotations Paid/Subsidized Attendance at Outside Seminars and Conferences Paid/Subsidized Certification Programs Degree of on Attraction and Retention Attraction 3% 24% 48% 25% Retention 3% 21% 47% 28% Attraction 3% 23% 47% 27% Retention 2% 18% 40% 40% Attraction 8% 33% 48% 12% Retention 5% 26% 47% 22% Attraction 9% 34% 43% 14% Retention 6% 29% 46% 20% Attraction 6% 30% 47% 17% Retention 4% 25% 48% 23% 91% 78% 44% 95% 90% Demographics Number of employees (worldwide) Less than 100 employees 5.3% % % 1,000-2, % 2,500-4, % 5,000-9, % 10,000-19, % 20,000-49, % 50,000-74, % 75,000-99, % 100, , % 500,000 or more 0.5% Organization Type Public 51.6% Private 28.3% t-for-profit 20.1% Attraction and Retention Practices WorldatWork, October

8 Industry Accommodations and Food Services 1.1% Administrative and Support, Waste Management and Remediation Services 0.3% Agriculture, Forestry, Fishing and Hunting 0.2% Arts, Entertainment and Recreation 1.3% Construction 0.6% Consulting, Professional, Scientific and Technical Services 8.4% Educational Services 4.6% Finance and Insurance 14.0% Health Care and Social Assistance 10.6% Information - includes Publishing -Electronic and Print, IT, etc. 3.8% Manufacturing 16.7% Mining 0.5% Other Services - except Public Administration 6.0% Public Administration 3.0% Real Estate and Rental and Leasing 0.6% Retail Trade 2.8% Transportation and Warehousing 2.7% Utilities, Oil and Gas 6.2% Wholesale Trade 0.9% Other t Identified Above 15.8% Attraction and Retention Practices WorldatWork, October

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