This Week's Herman Trend Alert

Employer Self-Insurance
is Surging


  The Herman Trend Alert

November 19, 2008

Protecting Perks in a Downturn

In spite of the drastic effects of the economy on the labor market with announced workforce reductions up 30 percent, a surprising majority of companies (66.7 percent) have chosen to preserve their employee perks. Ten percent of those employers said they had considered trimming perks, but decided to leave them at current levels.

Despite their need to reduce their expenses, almost 55 percent still plan to distribute year-end bonus checks this year (2008). Only 20 percent of the companies surveyed said they had cut or eliminated perks to contain costs. At the same time, 35 percent reported they had to cut these extras to save jobs.

These findings were part of a recent survey of employers, conducted by one of the leading global outplacement firms, Challenger, Gray & Christmas last month.

According to the Challenger survey, 50 percent of companies reported having awarded year-end bonuses last year (2007). A mere 4 percent said they planned to decrease the levels of bonus checks, while 23 percent said bonuses will be approximately the same as 2007. One could also conclude from these data that a surprising 22 percent of employers actually plan to increase their bonuses.

The destabilized economy has led to major reductions in force. According to Challenger's estimates, through September 2008, employers have announced plans to cut a total of over 750,000 jobs. Yet in spite of the softer economy, another survey conducted by a business research firm in Arlington, Virginia and ADP, the payroll provider, found that 34 percent of their respondents reported "recruitment and retention" as their top priority.

Looking at the findings from both of these studies, we can infer that a large percentage of employers understand the value talented workers provide to the organization. They know that if they do not take care of their employees during this difficult time, when the economy improves, those employees might leave.

Wise employers will hunker down and engage their associates to help them streamline processes, market smarter, and cut expenses. They will continue to resist reducing bonuses and perks, because they know the future dangers and choose to think long-term.

© Copyright 1998- by The Herman Group, Inc. -- reproduction for publication is encouraged, with the following attribution: From "The Herman Trend Alert," by Joyce Gioia, Strategic Business Futurist. 336-210-3548 or To sign up, visit The Herman Trend Alert is a trademark of The Herman Group, Inc."

You know that giving your employees financial incentives to be healthier helps lower healthcare costs. Now, you can help them be healthier by reducing their financial stress as well. Best Money Moves will help you increase retention and productivity and thus enjoy better health outcomes. Call 847-242-0550 for a free trial TODAY.

Versatile translator provides services from English, French, or German into Spanish. Especially well-versed in medicine/pharma and automobile industries. Also editing and proofreading of all kinds of Spanish language documents. 5-year Bachelor Degree in Translation. Flexible rates, depending on number of words, degree of difficulty/technicality, and turnaround. For an instant quote email Mariana Campora Lesti at or contact her on SKYPE at marianacampora.

Our Herman Trend Alert author, Joyce Gioia, is a popular speaker for a wide variety of different groups. For more information about Joyce and a sampling of the topics Joyce can cover, visit or call Carl at 336.210.3548.

To read this Herman Trend Alert on the web: http://

Herman Trend Alerts are produced by the Herman Group, strategic business futurists, Certified Management Consultants, authors, and professional speakers.

New subscribers are always welcome. There is no charge for this public service. The Herman Trend Alert is read by over 30,000 people in 87 countries, including other websites and printed periodicals. Do you enjoy receiving this weekly e-mail update? Contact us about our co-branded Herman Trend Alert service. Click here to sign up for the Herman Trend Alert.

Subscribe or Unsubscribe to weekly Herman Trend Alert
View this week's Herman Trend Alert
Archived Weekly Herman Trend Alerts


[ Home About Products Resources Media ]


7112 Viridian Lane
Austin, TX 78739
Voice: 336-210-3547
Toll Free in US & Canada: 800-227-3566

  © The Herman Group. All rights reserved.

Web site design by WebEditor Design Services, Inc.