News You Can Use: Nearly one third of employees may not own a home computer

Nearly all (94.5%) of human resource professionals say that it is important for employees to own a home computer, but as many as one-fourth of professionals say that over 30% of employees don't own computers at home.

"The survey echoes what we have seen as a growing trend -- access to home computers has expanded in recent years, but disparities still exist for those employees trying to acquire these essential, life-enhancing products during these unforgiving economic times," said Elizabeth Halkos, vice president of sales and marketing for Purchasing Power, the Atlanta-based company that conducted the survey.

Having access to benefit information online is the most important reason for employees to have home computers, according to 81.5 % of respondents. Also ranking high (both at 50.6 %) as an important use for a home computer was improving skills of the employee through online education and accessing wellness programs and other health information.

When asked if they have any solutions available for employees without home computers, 57.7 % of respondents said they did not. Of the 42% of respondents who do, 28.5% said they have computer kiosks in the workplace for use on breaks and 27% have loaner laptops for take-home use. Only 16.6 % reported they are offering computer purchase as a voluntary benefit, however.

The random sample survey was conducted during the 21st Annual Benefits Forum & Expo and the Society for Human Resource Management's (SHRM) 60th Annual Conference.

News You Can Use: Benefits accounted for nearly one-fifth of total compensation in 2007

Benefits account for nearly 20% of total compensation spending, states data from the nonpartisan Employee Benefit Research Institutes's 2007 study, published last week in the November issue of EBRI Notes.

Employers spent nearly $8 trillion at year-end 2007, up nearly 35% from the year 2000.

Wages and salaries accounted for the largest share, $6.4 trillion (or 81.4%), while benefits made up the remainder, $1.5 trillion (18.6%).

The largest portion of benefit spending remains in the retirement arena, at 47.7% of total benefits expenditure. Health costs, however, have risen to a close second at 42.8%. "Other benefits," which includes unemployment insurance, life insurance and workers compensation, rounded out the total at just under ten percent.

Overheard At/Tip of the Day: Eight great tips to save for retirement

Dean Kohmann, vice president of 401(k)s for Charles Schwab, chatted with us last week to share details about a new survey about retirement habits. He offered eight tips to help employees get on track with their savings regimen. Tune in to the podcast, and find the tips written below in this exclusive "print for your employees" section.

1. Contribute to your company’s retirement plan up to the maximum employer match.

Even if money is tight, Schwab recommends that people contribute at least enough to their 401(k) or similar plan in order to get the full company match. “You are getting paid to save,” asserts Catherine Miller, vice president of investor development for Schwab. “Don’t leave money on the table.” Most 401(k) contributions are deducted from pre-tax income, so people keep more of their earnings each paycheck and savings grow tax-deferred until retirement.

2. Pay off nondeductible, high-interest-rate debt like credit cards.

Eliminating debt will make it much easier to reach your savings goals. To maximize savings, create a budget and look for ways to cut back on non-essential expenses. Use that extra money to make more than the minimum monthly payment on high interest credit cards or loans. You can also try negotiating with credit card companies for a lower interest rate.

3. Create an emergency fund to cover at least three months of essential living expenses.

Without an emergency fund, Americans are at risk of dipping into retirement savings or taking on more debt if they need quick access to cash. You should save enough to cover at least three months of essential living expenses like rent or mortgage, utilities, food and transportation. Keep your emergency fund in an account that’s easy to access like a checking or savings account.

4. Contribute the maximum allowed to tax-advantaged retirement accounts.

Now more than ever, you are responsible for ensuring your own financial security during retirement. The more money you set aside early, the more comfortable your retirement may be. Try to contribute up to the IRS maximum in your 401(k) plan at work (the new maximum will be $16,500 in 2009) and also contribute to a traditional or Roth Individual Retirement Account (IRA), if available to help supplement these savings.

5. Save for a child’s education.

As a general rule, Schwab recommends saving for retirement before your children’s college education. “Your child may be able to get a loan for college, but you can’t get one for retirement,” added Miller. A 529 college savings plan or a Coverdell Education Savings Account can help you take advantage of tax-deferred growth on your investment.

6. Save for the down payment on a home.

Start by estimating how much house you can afford. Typically, your mortgage payment, including principal, interest, taxes and insurance should not be more than 28 percent of your gross income. Make sure you keep your risk tolerance and timing needs in mind when deciding how to save for your down payment. Avoid using tax-deferred retirement accounts to fund this purchase.

7. Pay down tax-deductible, high-interest-rate debt like mortgages.

Reducing high-interest-rate debt from a tax-deductible mortgage, home equity or student loan can significantly enhance your ability to save in other areas over time. After taking care of other savings priorities, Schwab recommends you consider refinancing this kind of debt if interest rates have dropped. You may lower monthly payments in the near term and help save money over time, but make sure to factor in any transaction or closing costs before making a decision.

8. Keep investing.

If you’ve accomplished your other savings priorities, investing for the long term may be a good way to stay ahead of inflation and earn more than traditional savings accounts pay. Start by creating a realistic investing plan and put it into action to begin earning right away. Stay diversified with an asset allocation that matches your risk tolerance and keep long-term goals in mind to stay on track.

News You Can Use: Nearly one-third of workers do holiday shopping online at work

Nearly one-third (29%) of workers do holiday shopping online during work hours, states new data from CareerBuilder.com. In addition, only half of employers will monitor Internet use of employees, potentially setting the stage for even more lost productivity in an already-crunched Q4.

"While employers are unlikely to terminate workers for online holiday shopping during the workday, employees should proactively police their personal Internet usage," said Rosemary Haefner, Vice President of Human Resources for CareerBuilder.com. "In addition, employees need to be aware of company Internet policies, as more than a quarter of employers surveyed monitor workers' time spent online and sites visited."

Of those who plan to holiday shop online this season while at work, 43% of workers anticipate they will spend more than one hour, 23% said they will spend two hours or more and 13% will spend three hours or more.

According to the survey, workers also use the Internet for the following non-work related purposes:

Research. 61% of workers use the Internet for non-work related research and activities while they are at work. Among these workers, 37% said they spend an average of more than 30 minutes of their workday on non-work related online activities and 18% said they spend an average of an hour or more.

E-mail. 20% of workers send six or more non-work related e-mails per day. Among this group, 22% spend more than 30 minutes during the typical workday doing so.

Blogging. 9% of workers surveyed have a personal blog, and while nearly a quarter (23%) of them spend time blogging at work, only 9% of them spend 15 minutes or more blogging during the typical workday.

Social Networking. 41% of workers surveyed have a MySpace, Facebook or other social networking page. More than one-third (35%) of them spend time on their social networking page during the workday with 8% spending 30 minutes or more.

Instant Messaging: 20% of workers use instant messenger at least once a week.

More than 5,600 U.S. workers and more than 3,000 hiring managers and HR professionals participated in this survey, conducted between August and September.

Overheard At: How Piggly Wiggly got high-tech

In today's special Web-exclusive podcast, grocery chain Piggly Wiggly discusses how they moved from paper to online enrollment systems. Craig Massey, director of HR, shares the story with EBA Managing Editor McLean Robbins.

Tip of the Day: Get workers to tune in to benefits updates

With open enrollment season in full swing at companies nationwide, employees who miss out on benefits may be simply throwing money away.

Nearly a quarter of workers don't pay attention when new and potentially cost-saving methods are offered, states new data from CareerBuilder.com. More than half of employers report that workers are losing more than $250 through poor choices, and 20% report that workers are losing $1000 or more.

"Open enrollment ensures that eligible employees are not missing out on significant amounts of helpful benefits and wallet friendly programs," said Rosemary Haefner, vice president of human resources for CareerBuilder.com. "In a challenging economy, many people are being prudent about how they can save money by cutting back on exorbitant personal expenses, but also need to be aware of cost-saving benefits at work that are easily available to them."

Haefner offers the following tips to employees to take advantage of benefits savings:

-- Keep benefits on radar: Workers are already overwhelmed with e-mail, so make each communication count. Use bullets, bold, and consumer marketing techniques to convey benefit changes, especially when cost savings are available.
-- Speak up: Make yourselves available to employees, via telephone or one-on-one meetings.
-- Be proactive: Tell employees about savings available through benefit changes, and highlight information about savings in these communications. And during one-on-one meetings, be sure to take the time to educate employees about other benefit offerings that might be of interest, like transportation reimbursements, or FSA plans.

The survey was conducted among more than 6,100 U.S. workers and more than 3,000 hiring managers and HR professionals between August 21 and September 9, 2008.

News You Can Use: What sets your Gen X and Gen Y employees a-Twitter?

In collaboration with Editor in Chief Kelley Butler's article in the December issue "Leveraging BlackBerries and buzzwords," EBN conducted its own (albeit unscientific) research to figure out how your Gen X and Gen Y employees best communicate.

Following the model set forth in the original study, published by the Employee Benefits Research Institute, we asked a number of employees what terms they most did (and didn't) identify with.

Meaghan Lynch, second year medical student at Boston University

Disciplined: Very
Carefree: Not so much
Family-Oriented: Very
Hard-working: Very
Expensive Taste: Somewhat
Technologically Savvy: Not at all.
Charitable: Very
Optimistic: Very

Other words: Happy, honest, social, motivated, practical

---

Gina Anderson, researcher at Corporate Executive Board

Disciplined: Yes
Carefree: Somewhat
Family-Oriented: Not very
Hard-working: Yes
Expensive Taste: Somewhat
Technologically Savvy: Yes
Charitable: Somewhat
Optimistic: Extremely

Other words: energetic, intelligent, intellectual, organized, and conscientious

---

Alison Noelker, field sales representative at Eli Lilly & Co.

Disciplined: Very
Carefree: Not at all
Family-Oriented: Somewhat
Hard-working: Very
Expensive Taste: Somewhat
Technologically Savvy: Very
Charitable: Somewhat
Optimistic: Very

Other words: driven, energetic, determined, go-getter, empathetic, loyal

---

Molly Bernhart, associate editor at Fierce Markets

Disciplined: Somewhat
Carefree: Very
Family-Oriented: Very
Hard-working: Very
Expensive Taste: Not at all
Technologically Savvy: Somewhat
Charitable: Somewhat
Optimistic: Very

Other words: poised/tactful, creative, principled

---

Kristina Libby, U.S. Program Coordinator, Global Entrepreneurship Week

Disciplined: very
Carefree: somewehat
Family-Oriented: not yet
Hard-working: yes
Expensive Taste: relative to my income range
Technologically Savvy: Exceptionally
Charitable: yes
Optimistic: sickeningly so

Other terms: occasionally ambivalent, determined, open minded, fast paced, detail oriented, creative, knowledge hungry, bored with static nine-to-five hours, overachiever

---

In keeping with the idea that the Gen X and Gen Y audience best respond to messages distributed via Web 2.0 material, EBN has also begun distributing its own messages through social media channels like Twitter, Facebook, and a corporate blog, the Employee Benefit News Daily Diversion. If you're looking to get up to speed with your own employees, we'd suggest developing a familiarity with our own materials through these free and easy-to-use channels.

News You Can Use: Does where you live affect your retirement plan participation?

Employees in Midwestern and Northeastern states are more likely to participate in retirement plans than their Southern and Western counterparts, states new data from the nonpartisan Employee Benefit Research Institute.

According to 2007 data, wage and salary workers in Florida have the lowest probability (36.4%) of participating in a retirement plan, while those living in Iowa are the most likely to participate, at 58.3%.

Among salaried workers, Wisconsin took top place (54.4% among private wage and salary workers; 67.7% amongst full-year wage and salary workers). Again, Florida came in last, with 32.3% of all workers participating.

New Jersey residents are most likely to participate from the public sector employer group, with 82.1%, followed closely by Idaho and Ohio, at 81.9% and 81.7%, respectively. Louisiana residents in the public sector were lease likely to participate, with 68.8%.

If you're searching for ways to increase worker participation, why don't you take a listen to the helpful suggestions on our recent podcast with Dean Kohmann of Charles Schwab.

Overheard At: Great communication is simple ... in theory

Jennifer Benz, founder of Benz Communications, discusses new trends in benefit communication as part of our November feature on the topic.

For more information on this topic, check out the following articles in this month's issue:

• Award winners share best practices in communication
• Are you talking to me?

News You Can Use: Nation's health care systems slow to embrace wellness mantra

More than 40% of hospitals and health care systems will be on the wellness bandwagon by 2010, a new survey from Meritain Health reports. Additionally, 75% are considering adding wellness programs for employees if they do not already have one in place.

At present, a mere 7% have wellness programs in place.

“These survey results reflect a significant opportunity for helping health care workers become healthier and more productive, but unfortunately also illustrate the challenges HR managers face in making wellness programs an integral part of the benefits offered to employees at our nation’s hospitals and physician’s offices,” said Laura Smith, vice president of healthcare systems accounts for Meritain Health. “In perhaps no other industry could it be more important to have employees modeling healthy behavior, while at the same time producing significant cost savings for their employers.”

Employers report barriers like overall program appeal (30%), cost (27%) and convincing C-suite executives (15%) as reasons why they have not yet gotten wellness initiatives off the ground.

“In these lean economic times, it is tempting for healthcare executives to eschew offering new employee benefits in the interest of prudent budgetary policy,” said Dr. Larry Luter, Chief Medical Officer for Meritain Health. “With the cost of healthcare continuing to rise every year, and national data regarding the number of Americans who are overweight, obese or living with diabetes doing the same, an investment in employee health is one of the most important things any company can do to secure its long-term financial future.”

Overheard At: Tuition Benefits

Retaining valued employees is more important than ever. Learn how tuition benefit programs work from Linda Blandford-Beringsmith, a vice president at Robert Half International.

For more information on this topic, read "Straight A's for tuition benefits" in this month's issue.

Overheard At: Save your job

Welcome to this web-exclusive podcast focused on your careers - not the needs of your clients or employees, but on how to take care of #1 in today's downtrodden economic state. Last week, first-time unemployment claims rose to the highest level since September 2001, and more cuts are surely around the corner as companies realize difficulty meeting 2009 budget expectations. We're here today with Chuck Wright of leading executive recruitment firm Santon Chase International.

Tip of the Day: Five questions to tell your employees to ask at open enrollment

When brainstorming ways to better educate your employees about the decisions they need to make at open enrollment, it's often imperative that benefits professionals put themselves in an employee's shoes.

Andy Smith, Senior Partner with Cornerstone Financial Partners, believes that by not investing the time to make informed choices, workers may be leaving money on the table and putting their future at risk.

Take Smith's five questions and ask yourself one more: Am I educating my workers to make a proper decision about this topic?

1. Is the 401(k) account properly allocated? "For most workers, the 401(k) will be the primary source of income in retirement, so it's important for investors to review their portfolio and rebalance when necessary," says Smith.

According to the Financial Engines National 401(k) Evaluation, 69% of the nearly 1 million 401(k) participants surveyed have portfolios with inappropriate risk and/or diversification. Additionally, 36% hold high concentrations of company stock, and 33% fail to contribute enough to receive the full company match, leaving money on the table.

2. How much is in company stock?

The Pension Protection Act of 2006 has made it easier for employees to diversify out of company stock. The act gives employees the right to sell publicly traded company stock received as a matching contribution in a retirement plan account after three years of service for original matching contributions, and immediately for employee contributions.

3. Is there a better choice for health insurance?
Spend time educating employees about CDHPs and HDHPs in such a way as to inform them of which choice will most benefit them health-wise and financially.

For 2009, the maximum annual HSA contribution for an eligible individual with self-only coverage is $3,000. For family coverage, the maximum annual HSA contribution for 2009 is $5,950. Individuals age 55 and older can also make an additional "catch-up" contribution of $1,000 in 2009.

4. Are Flexible Spending Accounts being fully utilized? In addition to visits to the doctor, the cost of eyeglasses, dental work, psychologist visits, even cough syrup can be run through the plan.

Some companies also offer a dependent care Flexible Spending Account (FSA) which allows contributions up to $5,000 a year.

5. Is long-term care coverage necessary? According to the American Association for Long-Term Care Insurance roughly one-third of men and one-half of women age 65 and over will require some form of long-term care.

Smith advises married couples to review both spouses' benefits to find any gaps or overlaps in coverage. "It's possible to save money or improve coverage simply by moving the family to a spouse's heath plan," says Smith.

Overheard At: Proactive engagement mitigates workplace conflict

Did you know that it costs 150% of an employee's annual salary to replace them? In today's Web-exclusive podcast, Richard Hart of Proactive Resolutions talks about how to get employees to proactively deal with difficult workplace situations and offers tips on how HR can mitigate potentially job-threatening situations before they get out of hand.

News You Can Use: Lack of communication damages morale

We all know communication is essential when getting benefits messages across to employees, but new news from Accountemps suggests that effective communication can actually improve morale as well. When used incorrectly, one-third of executives responding say that a lack of open and effective communication is the top thing that can damage employee happiness.

"Regular communication with employees is always integral to an organization's success, but it becomes especially critical during periods of uncertainty," said Max Messmer, chairman of Accountemps and author of Motivating Employees For Dummies(R) (John Wiley & Sons, Inc.). "When people are concerned about job security and company performance, updates on corporate news are essential. By keeping employees informed, managers can address anxiety and ensure workers are focused on meeting business objectives."

For more information about how to effectively reach your employees, we'd suggest "Are you talking to me?" in this month's EBN.

News You Can Use: Merit pay increases shrink further

The slumping economy has caused merit pay increases to decrease to 2.8%, down from the 3.71% expected in June. Cost of living increases are budgeted at around 1.2%, and higher among small businesses, states new data from Business and Legal Reports.

Merit increases remain the largest at companies with over 1,000 employees, hovering at around 3%, while cost-of-living increases are the largest at nonprofit companies.












"We are just trying to keep doors open," one respondent reportedly said.

According to the survey, 38.5% of respondents are changing plans because of the economy. An additional 30.5% are considering changes. Only 23.6% are moving forward with initial budget expectations. Nearly four-in-ten companies responding plan to reduce pay, offer smaller or no rate increases (24.4%) or delay effective dates of raises (15.3%).

One respondent said that while they were not freezing increases, they were cutting back on employee's eligible hours.

The survey was conducted in late October via online polling. 541 people responded.

News You Can Use: Presidential preferences

Don't miss our must-see coverage of what President-elect Obama's policies will mean for you. It's all online at ebn.benefitnews.com.

Quotable: Look smart, recruiters!

"After a period of reactionary cutting and freezing, hiring activity will return to a level of normalcy that closely replicates the hiring levels experienced during the first half of 2008," says Jobfox CEO Rob McGovern, author of The Recession: A Silver Lining for Corporate Recruiters, a white paper. "Hiring is largely a function of 'job churn' and we see no evidence that churn will do anything but accelerate in the coming quarters."

Tip of the Day: Energy (and cost) saving tips for the office

When your business is struggling to save for every penny, low-to-no-cost ways to save money are often overlooked in the search for the next grand solution. Go green(er) and with these cost saving measures, courtesy of the E.P.A.'s ENERGY STAR program:

Give it a rest
Use power management settings on your computer and monitor (sleep mode) when not in use. Use the power strip as a central "turn off" point to completely disconnect the power supply at night.

Unplug it
Unplug cell phones and laptops when they are charged. Adapters draw energy from outlets even when they're not charging.

Lighten up
Make sure your bulbs are ENERGY STAR efficient. They last up to ten times longer and use 75% less energy. And of course, turn the lights off when you leave.

Let it flow
Make sure paper, files and office supplies aren't blocking air vents. Blocked vents use up to 25% more energy.

Team up
Remember the power of numbers. Create a "green team" in your office to brainstorm ways to make your working environment a greener place.

News You Can Use: Absent employees cost companies more than one-third of payroll each year

It’s no secret that missing workers cost companies millions of dollars in lost revenue each year. But exactly how much does the combined cost of absenteeism affect your business?

According to a new survey by Mercer, “The Total Financial Impact of Employee Absences,” the total cost of absence can equal as much as 36% of payroll. Of that 36%, nine percent accounts for unplanned absences. Planned absences, like vacations and holidays, average 26.6%.

For even a mid-sized business, this unplanned absence can account for as much as $4.5 million dollars per year.

“Employers tend to focus their energies on managing healthcare costs because the dollars are easily measured,” said George Faulkner, principal and absence management specialist at Mercer. “But this new survey suggests that absences cost employers more than half the cost of healthcare, a startling number and a call to action for all organizations to get a better handle on this often unchecked cost.”

Unplanned absences like casual sick days result in the highest per-day productivity loss, 21% versus just 15% for planned absences like vacation days. On average, employees have 5.3 unplanned absence days per year.

“The cost of absenteeism is often misunderstood, seen as un-measurable, or dismissed as negligible,” said Toni Kellam, absence management consultant at Kronos, the company that commissioned Mercer’s survey. “[T]his new survey shows is that employers can control labor costs and increase productivity by better tracking and controlling their absence-related expenses and minimizing unplanned absences.”

In order to help manage unplanned absences, 36% of survey participants use a PTO bank rather than a tradition TTO plan for nonunion hourly workers. In contrast, only 29% use PTO banks for salaried workers.

Fourteen percent of employers don’t provide paid sick leave for non-union hourly workers (excepting disability claims).

Nearly 500 employers participated in the survey.