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CCH® BENEFITS — 2/20/08

Expanded Benefits May Prevent Labor Shortage For Employers In Puerto Rico

From Spencer's Benefits Reports: In order to remain competitive, employers in Puerto Rico must address the aging work force and consider expanding benefits as key approaches to preventing a labor shortage in their firms in terms of employee retention and recruitment, according to the report Workforce Trends: An AARP Study of Employers and Workers in Puerto Rico.

Many of the 400 surveyed firms already offer benefits and programs that are valued by workers older than age 50. Included in those benefits are health care coverage, retirement savings plans, paid vacation, and leave. However, to keep and attract skilled and experienced workers, firms might want to consider adding other benefits, including retiree medical benefits, eldercare leave, and alternative or flexible work arrangements, AARP suggested.

Of the 501 surveyed workers, many (76%) said that they would find employer-sponsored financial planning programs very useful, but such programs generally are not offered. Employers named as their top three challenges finding employees with the right skills and qualifications (88%), filling key positions (75%), and providing competitive benefits and compensation (75%). About the same proportion (57%) indicated that they are at least somewhat likely to face a shortage of qualified workers over the next ten years and that their older workers are retiring and creating a labor shortage.

Nearly four-fifths (79%) of workers in the U.S. expect to continue working in retirement, and 69% of workers in Puerto Rico agree. The great majority of the Puerto Rico workers who said that they would continue to work in retirement would do so because they enjoy working (93%), while 87% would do so to maintain health care benefits, and 83% would do so to pay health care premiums.

The following chart illustrates the percentages of firms offering and workers having specific benefits programs:

The benefit that workers value most, by far, is health care coverage (91% of workers), followed by paid time off (81%), dental/vision (77%), life insurance (75%), long term care insurance (74%), and 401(k) plans (65%).

For a copy of the AARP report, contact jsauer@aarp.org.

For more information on this and related topics, consult the CCH Pension Plan Guide, CCH Employee Benefits Management, and Spencer's Benefits Reports.

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