Benefits October 3, 2007

Employers to Focus on Career Development and Employee Training in 2008

October 3, 2007 (PLANSPONSOR.com) - U.S. employers plan to throw most of their money toward ramping up career development and training opportunities for their workers in 2008, rather than increasing investment in retirement or health care benefits, according to a survey by Mercer.
Reported by

The Mercer survey looked at the talent and rewards strategies of 580 companies in the U.S. and found that 51% of companies plan to hike their investments in career development, 47% say they will keep investment in that area the same in 2008 and only 2% say they will lower the amount.

Companies said they would direct money toward the following:

  • 46% said they would increase investment in training opportunities, 51% said stay the same, and 2% said they would decrease.
  • 33% said they would increase investment in non-cash rewards, 65% they would keep investments the same, and 2% said they would decrease investments in that area.
  • 29% said they would increase annual cash incentives, 67% said they would keep it the same and 4% said they planned to decrease investment in this area.
  • 14% said they would increase health care investments, 79% said they planned to keep them the same, and 7% said they would decrease investments in this area.
  • 9% said they would ramp up retirement investments, 82% said they would keep investments the same, and 9% said they would decrease investments in that area.

The survey also looked at the greatest challenges employers face with respect to the workforce. Attracting and retaining quality talent was the top concern, with 88% of respondents saying so, followed by engaging employees (76%) and keeping total rewards costs affordable and sustainable (74%).

For the full survey results go here .

«