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.

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: Breaking the salary talk taboo

Should salaries be public? The issue won’t be moot, if a new Web site has its way.

While salary ranges have been available for some time on the Internet, Glassdoor.com, launched in June, now makes it possible for employees to post their salaries for the world to see. The site lists some 88,000 salaries at 11,000 companies in 90 countries, according to an article in yesterday’s Christian Science Monitor.

It's a level of transparency that hasn't existed before, so it's initially uncomfortable," Robert Hohman, CEO of Glassdoor, told the Monitor. "But it's empowering. Being paid fairly for our work affects us emotionally, and having that income affects our life.”

Some companies already make employee salaries public. Is this the way to ensure fairness in the workplace? Does salary transparency serve as an incentive because people must live up to their level? Or does it only breed discontent? There often are other components to compensation; should they, too, be public?

Tell us what you think!

New s You Can Use: Want a bigger salary? Consider IT.

Despite the lagging job market, IT salaries are on the rise. BenefitNews.com Site Director Lynn Gresham explores this topic in today's Web Exclusive.