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HR Execs Want to Empower Employees to Make Own Benefits Decisions
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Sixty percent of human resources executives at America's mid-sized companies wish they could empower their employees to make their own benefit decisions, according to a national survey.

Covering more than 900 companies in a variety of industries across the country, the survey examined attitudes of human resource professionals on a broad range of benefits issues. The HR professionals held management positions ranging from senior vice president to risk manager. 

Empowerment 

Empowerment of employees emerged as a popular theme among the widely divergent companies. According to the survey, 60% of HR executives wish they could provide employees with enough information to make their individual benefits decisions ``and leave the rest to them.'' 

Nearly that same number -- 61% -- wish their employees could call a single number to handle questions concerning their benefits plans. 

Reduced Staffing

In fact, the study shows that 45% said "my department is so lean that there isn't enough time to do anything but fight fires.'' Not surprisingly, 45% of the HR executives viewed their role as a strictly "operational,'' while 55% saw their role also as "strategic, spending a good amount of time each year on benefits strategy.'' 


In addition, about 37% say "it's far too difficult'' for my staff to stay on top of benefits issues. In fact, only 30% consider themselves knowledgeable about all the different kinds of benefits products and services available today. Some 33% appeared to be overwhelmed, saying they have to make administration of the benefits plan easier: "we can't continue this way.'' 

Staffing Levels 

Overall, the survey found an average ratio of one benefits staff member, including administrative support personnel, for every 285 employees. In the leanest-staffed companies -- about 21% of the respondents -- the survey found a ratio of one staff member per 420 employees; in the fullest-staffed companies -- about 31% of the respondents -- there was one staff person per 250 employees. 

Only 42% of the respondents believe their employees are "fully satisfied with the service they receive from our benefits department today.'' 

Ironically, the study showed that 89% of the respondents believe one of their "major roles'' is to answer employees' questions. About 27% believe they spend "too much time'' answering employee questions. 

"Being a benefits manager today is extremely challenging,'' Swaye said. 

Frustration 

More than half of the respondents -- 55% -- say they believe employees "don't even read their benefits materials.'' About a third said "our employees don't even appreciate the benefits which they receive.'' 

The survey also found many HR staff challenged by a geographically diverse employee population. About 64% of the companies have more than 10 employee locations. For most companies, the benefits staff is located at company headquarters. 

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Fiscal Challenges 

Other challenges faced by the HR professionals included financial constraints, with 70% of the respondents saying they are facing growing pressure from management to find costs savings while increasing benefits and services to employees. In fact, 55% say senior management rewards them by doing more with less. Only 25% say they are rewarded based on employee satisfaction. 

Meanwhile, almost all of the respondents -- 85% -- say they also have had to grapple recently with the changes brought by either downsizing, reengineering or acquiring another company or division. And, close to 70% of the companies expect like changes in the near future. 

The study consisted of a random sample of 906 high-level benefits managers of companies with 1,000 to 10,000 employees, representing approximately 8.5 percent of the 10,631 companies of that size in the United States. Respondents were interviewed via telephone and asked to complete a written survey. The New York City-based Guideline Research Corp., which conducted the fieldwork and the statistical analysis, ranks among the top 25 custom market research firms in the U.S. 
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