By Pension and Benefits Editorial Staff
Traditional paid leave plans (where all leave is in separate categories, such as sick and vacation) maintain a strong presence in the workplace, as 49 percent of employers responding to XpertHR's 2020 Employee Benefits Survey noted they have this type of plan, compared with 44 percent who offer a paid time off (PTO) plan (where all or most leave is in a single PTO bank).
"Choosing between a traditional or PTO leave system is always an important challenge for employers, but this choice has taken on added significance due to COVID-19," says Andrew Hellwege, Surveys Editor, XpertHR. "When setting up paid leave benefits – whether it be a traditional or PTO plan – employers should carefully consider how their plan protects employee and public health, as well as ensure it complies with any potential changes in leave legislation spurred by the pandemic."
The survey also covered a variety of health insurance plans and found that preferred provider organization (PPO) plans are the most popular option, with 69 percent of employers providing this type of plan, followed by high deductible health plans (HDHPs) (46 percent).
Retirement plans. The survey report examines the retirement landscape as well, another issue highlighted by the Coronavirus pandemic, as Americans' savings are battered by fluctuating markets. Among the several retirement plans covered by the survey, traditional 401(k) plans are the most popular, offered by 66 percent of responding organizations, followed by Roth 401(k)s (38 percent), and traditional pensions (11 percent).
"Clearly, modern retirement options focus on savings and investment outcomes, as pensions are a shadow of their former selves," says Hellwege, "but with two major economic downturns in roughly a 10-year period, employers may want to consider bolstering the financial security of their retirement plans – perhaps by offering increased employer contributions – to help shield workers' retirement savings from market volatility."
Other benefits. In addition, the survey report covers over a dozen miscellaneous benefits aside from the main pillars of leave, health care, and retirement. Among these other benefits, employee assistance programs (EAPs) are the most popular, as they are offered by 65 percent of organizations.
Notably, while 41 percent of organizations provide some form of tuition reimbursement or assistance, only three percent provide student loan repayment. "While student loan repayment has been a hot topic in the benefits world for the past few years," says Hellwege, "employers are clearly not yet sold on the idea, and continue to prefer to provide assistance for education sought during employment, rather than for debt incurred before the new hire walked through the door."
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