Mid-Atlantic Tech Companies Use Flex Benefits to Attract Workers

December 11, 2008 (PLANSPONSOR.com) - The findings of the KnowledgeBank 2008-2009 Total Compensation Survey of Mid-Atlantic Technology Companies suggest that responding companies embrace flexible human resource practices to recruit and retain staff in a challenging marketplace.

According to a press release, 84% of respondent companies provide for variable work schedules and 64% encourage telecommuting. Other perks used to retain and recruit staff include providing special recognition awards (60%) and paying new hire bonuses for referrals (59%).

Common benefits provided to 70% or more of full-time employees at respondent companies include group term life insurance, vision care, 401(k) plans, prescription drug coverage and dental care. Tuition reimbursement plans were available in 44% of the firms, and 16% also provided profit sharing, the press release said.

Almost 90% of the survey participants provide health care coverage for employees and/or families, but cost sharing between employer and employee continues to increase. The survey found employers are continuing to adopt consumer-driven health care options that include health savings accounts (HSAs) and health reimbursement accounts (HRAs).

In 2008, the average actual salary adjustments were 4.2%, slightly less than last year’s 4.3% actual average. But despite the economic downturn, survey participants projected an average salary adjustment rate of 4.5% for 2009.

The survey collected data from 143 firms with total employment of 72,811 and incumbent pay data for 13,878 employees in September and October 2008. The summary report provides data on base salary, cash incentive, and total cash compensation for 30 key positions typically found in technology companies. A copy of the summary report is available for purchase at www.knowledgebank.us.com .