Benefit costs, employee engagement are top challenges as businesses recover from the recession

March 2, 2011

Survey by Unum and Harvard Business Review Analytic Services shows balancing act for HR

CHATTANOOGA, Tenn.--(BUSINESS WIRE)-- As they recruit and rebuild after the economic crisis, what concerns top the priority list for human resources leaders? Managing benefit costs followed by improving employee engagement, according to a new survey commissioned by employee benefits provider Unum (NYSE:UNM) in partnership with Harvard Business Review Analytic Services.

Next on the list are improving recruitment of quality employees and dealing with the impact of health care reform.

“Human resources leaders are walking a tightrope in balancing these demands, and they’re telling us that the pressure is only going to increase,” said Mike Simonds, senior vice president for Unum. “Employee benefits providers need to take an active role in helping them balance costs and build a culture that contributes to an engaged workforce.”

Among the findings of the survey of nearly 400 human resources decision-makers:

  • Nearly 60 percent said managing benefit costs is a top challenge, and nearly 80 percent expect that challenge to intensify in the next three years.
  • Forty-five percent said improving employee engagement is a top challenge, and 70 percent expect that challenge to intensify.
  • More than 40 percent said recruiting quality employees is a top challenge, and nearly 60 percent expect that challenge to intensify.
  • Nearly 40 percent said dealing with the impact of health care reform is a top challenge, and 80 percent expect that challenge to intensify.

The survey also found that the role of corporate culture is perceived as critical to driving engagement, recruitment and retention of a quality workforce. In fact, it may be more important than money, the survey finds:

  • A company’s values and focus on employee fulfillment are the most important factors in attracting and engaging quality employees.
  • Being a company that cares about the well-being of its staff was twice as likely to be viewed as very important in attracting and retaining staff as providing a high base salary.
  • An attractive benefits package and an ethical, transparent culture were also more likely to be viewed as very important in attracting and retaining staff than were a high starting salary and job security.

“Human resources leaders are looking for answers to questions about benefits cost predictability, employee engagement and simple administration,” Simonds said. “In our role as a benefits company, we appreciate the challenging but critical part employers play as providers of benefits access, education and guidance.”

Read the full results of the survey here.

About Unum

Unum (www.unum.com) is one of the leading providers of employee benefits products and services in the United States and the United Kingdom. Through its subsidiaries, Unum Group paid approximately $6 billion in total benefits to customers in 2009.

About Harvard Business Review Analytic Services

Harvard Business Review Analytic Services is an independent, sponsored research unit within Harvard Business Review Group, which conducts research and comparative analysis into timely business and management ideas.

About Harvard Business Review

Harvard Business Review is the leading destination for smart management thinking. Through its flagship magazine, 11 international licensed editions, books from Harvard Business Review Press, and digital content and tools published on HBR.org, Harvard Business Review provides professionals around the world with rigorous insights and best practices to lead themselves and their organizations more effectively and to make a positive impact.

About the survey

Harvard Business Review Analytic Services completed research with 394 individuals who identified themselves as benefits and HR decision makers via an online survey during June and July 2010. Respondents were largely drawn from the list of Harvard Business Reviewmagazine and email newsletter subscribers. Forty–four percent of the respondents were HR executives, directors, or managers, while another 25% were line-of-business managers. Owners and C-suite executives made up another 22%. Respondents represented a broad cross section of U.S. employers by size and industry.

 

 

Source: Unum

Contact:

Unum

Mary Fortune, 423-294-6368

mfortune@unum.com