Unfortunately for some employers, it may take more than just money to retain workers. According to recent study results, employees appreciate flexibility in the workplace as a way to balance a decrease in monetary benefits such as health care and pensions.

The Families and Work Institute, in its "2008 National Study of Employers" found that employees given more flexibility in the workplace are more likely to stay on the job. Study results were presented at the Word At Work Conference in Philadelphia in May.

And, according to the study, programs that cost money but improve the quality of workplace life, such as on-site child care, are not being reduced. 

Cutbacks are being made mostly in paid benefits, the study noted. While 94 percent of companies still provide health insurance coverage for family members of employees, just 4 percent now cover the entire bill. That is down from 13 percent 10 years ago. And 19 percent of companies will not pay any of the bill to cover family members, which is up from 12 percent in 1998. Also, 34 percent of employees who receive health insurance have seen their costs toward that insurance rise in the past year.

In spite of health benefits taking a direct hit, 31 percent of employers now offer health benefits for unmarried partners of employees, an increase of 14 percent over 10 years ago. Also, 65 percent of employers now offer Employee Assistance Programs to help workers deal with psychological problems, an increase of 9 percent over 10 years.

Life has gotten better for new mothers at work, according to the study, with 53 percent of companies providing a private space for breast-feeding women to express their milk (up 16 percentage points in the past decade), but fewer of them received full maternity leave pay. That figure dropped to 16 percent from 27 percent 10 years ago.

Further, the traditional defined benefit pension plan, provided by 48 percent of employers in 1998 has dropped to 29 percent now.

The study reported two conflicting findings on flexibility. Employers are more reluctant to let workers shift from full-time to part-time and back while keeping the same level of employment. In 2008, the study said, 47 percent of employers said they permitted employees to shift easily between full- and part-time, and that is down from 57 percent in 1998.

However, employers are now more flexible about when people arrive at and leave work, with 79 percent of employers allowing at least some of their workers to change their start times, up from 68 percent in the same study 10 years ago.

If you are struggling with retention challenges in your business, please give our Operations and HR Manager Lois Ribner, a call to brainstorm some ideas. You can reach her at 717-757-6999 or 800-745-8233. You can also send an email by using the form below.

Save article

Email Firm

Email to a Friend