Perks of Telework: Benefits Mean the World During Pandemic

Time for Perks of Telework, our revamped recap of intriguing data, surveys, and trends about how the 21st century workplace is weathering the new coronavirus. Check this space every other Friday to keep up with the latest coping with Covid-19 chatter.

Every Bit Helps

Six months into the virus-plagued lockdown, weary workers appreciate what they get out of their employee benefits.

Insurance provider Prudential polled workers about what’s on their minds as open enrollment season draws near.

Many said they appreciated the benefits offered by their current employer. Some admitted to keeping an eye out for better offers.

Three-fourths of respondents said benefits are more important than ever during the current economic downturn—the most treasured benefits being health-care coverage (44%), paid sick leave (43%), and work-sponsored retirement plans (38%).

Seven out of 10 (72%) said their current benefits package is “a big part” of why they’re sticking with whatever job they have right now.

Around half (52%) said they’d consider taking another job if better benefits were on the table.

And 51% said they’re worried about choosing the right amount of benefit coverage this enrollment season as the Covid-19 crisis rages on.

“Given the uncertainty of the current environment, it’s more important than ever for employers to educate and encourage their employees to choose the solutions that will help safeguard their financial security—over the near and long term,” Prudential executive Leston Welsh said in a release.

Lean Times

Clinging to worthwhile benefits sounds about right given Gallagher’s latest findings.

The consulting firm surveyed nearly 4,000 employers about compensation plans for the coming year.

Forty-three percent of respondents said salary freezes were in the works for management/executives, while 42% said rank-and-file staff would endure the same in order “to preserve jobs in 2021.”

Respondents reported no major benefits cuts—86% said health-care coverage hadn’t changed, and 79% plan to provide same level of coverage next year—so far.

But that’s likely to change.

Employers told Gallagher they’re being squeezed by the high cost of medical services (67%) and specialty drugs (41%). With the economy still sputtering, companies may shift more of the financial burden to staff in the coming months.

“Likely these would be in the form of increased premiums or greater implementation of high deductible health plans,” Gallagher analysts wrote.

Moving Along

Another pay-related issue managers are having to grapple with during the pandemic is retaining antsy staff.

Staffing service Robert Half polled senior managers in more than two dozen major metropolitan areas about how salary issues affect their ability to keep top performers happy.

Nearly nine out of 10 (88%) said they were worried about the company’s ability to hold on to talented staff. And 40% of those respondents listed forthcoming salary reductions or planned salary freezes as causes for concerns.

The cities where managers anticipate losing existing personnel because of pay constraints include Minneapolis (52%), Tampa (50%), and Portland (49%).

The cities where managers are currently open to negotiating salaries include Austin (51%), Raleigh (48%), and Charlotte (45%).

Hungry for more? Send any tips, polls, or story pitches to wrojas@bloombergindustry.com.