Employee Benefits Pay Off, Study Finds - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News

Employee Benefits Pay Off, Study Finds

Companies that invest in benefit and compensation programs are reaping benefits, according to a recent study by PricewaterhouseCoopers.

The economic slump has led companies to reduce costs in many ways, from eliminating small office perks to cutting jobs. But companies that have invested in employee benefit and compensation programs are seeing increases in productivity and revenue, according to a recent study by PricewaterhouseCoopers.

The Trendsetter Barometer, which surveys CEOs from 407 product, service, and technology companies with annual revenue of $5 million to $100 million, found that companies investing in benefit programs project revenue growth of 15.9% during the next 12 months, versus revenue growth of 14.3% for companies not investing in benefit programs. Technology companies fared best in terms of supporting employee benefits programs.

More companies are using stock options as incentives and extending the programs beyond those in management positions. And that helps boost productivity, says Paul Weaver, head of PricewaterhouseCoopers' global technology practice. "If you see someone wasting money, you question it because it's a piece of your money," he says. Companies that are performing poorly hesitate to offer profit-sharing or stock-option programs because they're fearful of diluting their holdings, Weaver adds.

Most companies continue to invest in 401(k) retirement savings plans, with 75% matching a percentage of employee contributions. And about 59% have warmed up to the idea of flexible spending accounts, which let employees pay for medical or dependent care with pretax dollars.

In InformationWeek Research's National IT Salary Survey 2002 of 10,109 IT professionals, health insurance and a 401(k) match are the two most common benefits offered to IT professionals. And only one in four IT staffers and three in 10 IT managers own company stock.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
2020 State of DevOps Report
2020 State of DevOps Report
Download this report today to learn more about the key tools and technologies being utilized, and how organizations deal with the cultural and process changes that DevOps brings. The report also examines the barriers organizations face, as well as the rewards from DevOps including faster application delivery, higher quality products, and quicker recovery from errors in production.
News
How COVID is Changing Technology Futures
Jessica Davis, Senior Editor, Enterprise Apps,  7/23/2020
Slideshows
10 Ways AI Is Transforming Enterprise Software
Cynthia Harvey, Freelance Journalist, InformationWeek,  7/13/2020
Commentary
IT Career Paths You May Not Have Considered
Lisa Morgan, Freelance Writer,  6/30/2020
Register for InformationWeek Newsletters
Video
Current Issue
Special Report: Why Performance Testing is Crucial Today
This special report will help enterprises determine what they should expect from performance testing solutions and how to put them to work most efficiently. Get it today!
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll