The McKinsey Quarterly Chart Focus Newsletter
June 2006 | Member Edition
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Why offer employee benefits? |
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The vast majority of US executives say that employee benefits help their companies attract and retain talent and that benefits are important to competitiveness, a new Quarterly survey finds.
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The chart above highlights a significant finding of the latest McKinsey Quarterly survey: an overwhelming majority of US executives see employee benefits as important to the competitiveness of their companies. When asked why they offer benefits, 89 percent of the executives cited human-resources concerns—in particular, attracting and retaining talent—as the main drivers. |
Even so, the survey responses also indicate that many companies don't understand what their employees want from benefit packages. Yet our data suggest that when a company better understands such preferences, it is more likely to claim adequate returns on its investment in benefits.
These survey results have just been posted on the Quarterly's Web site. For the full report, read "An executive perspective on employee benefits: A McKinsey Survey."
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"Designing better employee benefits" (Web exclusive, June 2005) shows how managers of benefit plans can learn to deliver the greatest value to employees at an affordable price.
"How to control health benefit costs" (2004 Number 1) outlines a comprehensive way for companies to control the cost of their benefits by understanding their health insurance costs and knowing which benefits are most important to their employees. (Premium)
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"What employees think about consumer-directed health care plans" (Web exclusive, November 2005) reports that these plans, which provide a new way to manage health care spending, encourage value-conscious behavior among US health care consumers. (Premium)
"Taking the risk out of retirement" (2005 Number 2) describes how financial institutions can improve the help they offer retiring consumers, who now bear more financial risk than they have in many decades.
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Creating value from employees
The world's largest companies are earning outsized returns—without significantly increasing the size of the workforce—by making their professional employees ever more productive.
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