Utilities are the benefit leader

Workforce, Jan, 2002

If you practice HR in a large company in the utilities or durable manufacturing industry, chances are that you are providing your employees with higher benefit levels than in other industries. If, however, you're in HR for the arts/entertainment/recreation, retail trade or wholesale trade industries, it's likely that your benefits are significantly below median market levels.

Those are the findings of William M. Mercer, Inc., in its annual "Spotlight on Benefits" report. The report looks at benefit programs in 700 large U.S. organizations (the majority with 2,000 or more employees) to give a snapshot of benefit trends and practices. No dollar amounts are reported in the survey, just the relationship of each sector to the total population of companies surveyed. "When designing or redesigning benefit programs, employers want to know whether their programs are competitive," says Kent Gregory, the Mercer consultant who prepares the report.

For retirement and savings benefits, the utility and durable manufacturing industries are 21 percent above the overall market median. For health and group benefits, utility companies provided a benefit level 19 percent higher than the overall market median, whereas durable manufacturing companies surveyed came in at 13 percent above the median.

At the other end of the spectrum is the arts, entertainment and recreation industry, in which retirement and savings benefits are 37 percent of the overall market median. Retail trade was 69 percent of the median, and wholesale trade was 74 percent. The health and group benefits picture was brighter for employees in arts, entertainment and recreation companies: those benefits came in at 88 percent of the overall market median, while retail and wholesale trade were less stellar, at 83 and 81 percent, respectively.

The complete report, which includes geographic breakdowns and other benefits information, can be purchased from Mercer for $450. Details are available at imercer.com or 800-333-3070.