2010 Top Five Total Rewards Priorities Survey
Employer and employee interests align around health, personal responsibility and cost reduction
The 16th annual "Top Five Total Priority Rewards Priorities" survey, sponsored jointly by Deloitte Consulting LLP and the International Society of Certified Employee Benefit Specialists, clearly underscores the impact of the financial crisis at both the employer level and the employee level. Motivated by concerns related to financial and job security, employees are getting their financial houses in order while increasingly participating in wellness and disease management programs. Likewise, employers are stepping up emphasis on such programs in an effort to combat rising healthcare costs year after year.
The survey found that companies continue to place a strong focus on cost, making it their number one Total Rewards strategic challenge with a 15 point lead over the second ranked challenge of talent. While hunkering down and focusing on cost may help a company survive this recession, it may also represent a risk for companies that want to be positioned to take full advantage of the economic recovery.
Key findings from an employee perspective include:
- 77 percent worried about their ability to afford retirement and 60 percent were apprehensive about staying employed.
- Four in ten employees plan to delay retirement and 45 percent plan on contributing more to 401(k) or other qualified retirement plans (up from 33 percent in 2009).
- 65 percent plan to participate in wellness and disease management programs to maximize their health status, up from 48 percent in 2009.
Key findings from an employer perspective include:
- 64 percent considered a move away from salary freezes or reductions within the past 12 months, and only 11 percent are contemplating such a move in the next 12 months.
- 52 percent identified an increase in the use of employee self-service technologies as the top action their organizations have undertaken relative to the restructure of the administration of some or all of its rewards programs.
- 51 percent indicated improving the measurement of return on investment of reward programs as an area of emphasis over the next 12 months.
- 72 percent of organizations planned to redesign their health and welfare plans over the next 12 months.
This alignment of interests between employer and employee is the strongest recorded to date and points to a shared focus on health, personal responsibility and cost reduction – that could benefit both in the long-term.