Workscape said it found that while almost half of organizations resorted to pay freezes or cuts during the recession and almost 90% froze or cut benefits packages, those measures have not yet resulted in high turnover, and while employers are contemplating the threats economic expansion may have on workforce retention, they are not yet confident enough in the recovery to exercise preventative measures where pay and benefits increases are concerned.
Two-thirds (65%) are considering or strongly considering pay increases to drive retention as the economy recovers, and 46% will consider benefits increases, according to the report. The greatest majority (82%) will increase manager/employee communications during the recovery in an effort to stem the loss of talent.
In addition, more than half (52.5) strongly disagreed that they will stop providing health care benefits to their employees and incur the fines under the new health law, even if paying fines rather than providing coverage makes overall employee healthcare costs lower. Two-thirds (65.7%) strongly agreed that they would continue providing health benefits to their employees as they find it critical for employee recruitment and retention.
More than seven-in-ten respondents (72%) said the one benefit employees cannot live without is health coverage. Other selections included merit increases (14%), performance bonuses (6%), 401(k) contributions (4%), and stock options (4%).
Workscape surveyed and/or interviewed 476 business leaders across the country in March and April 2010.
The survey report is here.