Wednesday, October 8, 2008
Tip of the Day
In this fragile economic state, retirement plan participants need all the help they can get to protect their assets. To help you help them, the Financial Industry Regulatory Authority and the International Foundation of Employee Benefit Plans have joined forces to educate employers about retirement scams and how to prevent them from harming workers.
News You Can Use: Credit crunch could squeeze benefits
A new national survey by Grant Thornton LLP reveals that 55% of CFOs say they have seen credit costs increase, and 64% have found credit more difficult to come by than one year ago.
As a result, nearly one-quarter (23%) expect their employee rolls to decrease over the next six months, and 55% name benefits costs as their top concern.
While benefit managers can't control the financial crisis, and shrinking availability of credit as a result, you can stand and make the case to their CFOs that trimming benefits may do more harm than good. To help you effectively speak financial-ese, read current coverage in EBN.
As a result, nearly one-quarter (23%) expect their employee rolls to decrease over the next six months, and 55% name benefits costs as their top concern.
While benefit managers can't control the financial crisis, and shrinking availability of credit as a result, you can stand and make the case to their CFOs that trimming benefits may do more harm than good. To help you effectively speak financial-ese, read current coverage in EBN.
Scone: HR/Benefits pros should beware getting too comfortable about succession planning
Even before the long-simmering financial crisis exploded two weeks ago, most research on the subject showed that baby boomers (all 78 million of 'em) largely were delaying retirement. They were doing so for multiple reasons: feeling they still had something to contribute to the workforce, wanting to stay active and of course, financial necessity.
As boomers have seen pensions and retiree health benefits dry up and their 401(k) savings take a beating in the stock market, even more employees in this demographic may put off retiring. In addition to creating a bottleneck in corporate advancement for hungry Gen X and Gen Y workers who are eager to move ahead in their organizations, the retirement delay seems to be lulling employers into a sense of security regarding succession planning.
New survey numbers from Novations Group reveal 36% of HR and training execs don’t expect an unusually large talent loss loss due to boomer retirements. Further, only about one-quarter (26%) are actively taking steps to plan for the talent loss, even though 18% say they expect the loss of talent and institutional knowledge to be "serious." One in five are clueless about how boomer retirements will affect their companies at all.
Yes, employers have bought themselves ($700 billion worth?) time in dealing with boomer retirement as the economy continues to slow and older workers need to maintain employment to keep health coverage and recoup lost 401(k) assets. However, succession planning is not an issue HR/benefit pros can ignore for long.
Because worst case scenario, when the economy recovers, boomers may begin to head for the exits, taking their knowledge with them. And those eager Gen Yers -- surely not known for exercising patience -- may be long gone.
As such, employers need to get busy on cementing their succession plans. For tips, read coverage in EBN, as well as its sister publication SMB Human Resources, which targets issues specific to small and mid-sized businesses.
As boomers have seen pensions and retiree health benefits dry up and their 401(k) savings take a beating in the stock market, even more employees in this demographic may put off retiring. In addition to creating a bottleneck in corporate advancement for hungry Gen X and Gen Y workers who are eager to move ahead in their organizations, the retirement delay seems to be lulling employers into a sense of security regarding succession planning.
New survey numbers from Novations Group reveal 36% of HR and training execs don’t expect an unusually large talent loss loss due to boomer retirements. Further, only about one-quarter (26%) are actively taking steps to plan for the talent loss, even though 18% say they expect the loss of talent and institutional knowledge to be "serious." One in five are clueless about how boomer retirements will affect their companies at all.
Yes, employers have bought themselves ($700 billion worth?) time in dealing with boomer retirement as the economy continues to slow and older workers need to maintain employment to keep health coverage and recoup lost 401(k) assets. However, succession planning is not an issue HR/benefit pros can ignore for long.
Because worst case scenario, when the economy recovers, boomers may begin to head for the exits, taking their knowledge with them. And those eager Gen Yers -- surely not known for exercising patience -- may be long gone.
As such, employers need to get busy on cementing their succession plans. For tips, read coverage in EBN, as well as its sister publication SMB Human Resources, which targets issues specific to small and mid-sized businesses.
Tuesday, October 7, 2008
Overheard At: Call for Commuter Benefits
Being stuck on a train gives a person lots of time to think. Recently, it got EBN Editor Kelley Butler thinking about the importance of commuter benefits. Hear her impassioned plea.
News You Can Use: More Americans choose not to retire
Data recently released by the U.S. division of Sun Life Financial reveals that almost half (48%) of the American workforce believes it will still be working at the traditional retirement age of 67, and four of the five top reasons given were not financial in nature.
Read more in today's issue of Employee Benefit News Canada inBrief.
Read more in today's issue of Employee Benefit News Canada inBrief.
Dispatch from Canada: Telecommuters embrace "cafe culture"
In this occasional series of dispatches from our Canadian editor Sheryl Smolkin, we explore areas of Canadian HR/Benefits information that would be of use to American readers.
Today's installment details how more and more Canadian teleworkers are making the home base a local coffee shop.
Read, "Café commuters blend coffee culture and telecommuting" here.
Tip of the Day
As a benefit manager, doing your part to support our nation's veterans may include helping them secure comprehensive health benefits. To learn more about what's available and legal for your veteran workforce, read the current EBN.
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