Research shows that many employees consider benefits as important as salary. In a competitive labor market, businesses are challenged to offer benefit packages that attract and retain high-quality workers. Employees are becoming increasingly aware of their benefits and how they compare with offerings from other companies.
For more than 50 years the Chamber has produce our annual Employee Benefits Study to help business owners and executives evaluate their companies’ benefits package, determine how it compares with others, and assess the costs of providing benefits. More than 400 U.S. companies participated in the Study, and more than 30 different types of benefits were analyzed by industry, company size, geographic region, and for-profit or nonprofit status
Our recently released 2007 study shows that:
- Medical benefits accounted for the largest share of employer benefit costs at 12.1% and retirement benefits followed by 10.4%.
- Payments for vacation, holidays, and other paid time off resulted in 9.8% of costs.
- Geography played an integral role in benefit costs. Businesses in metropolitan areas spent $3,600 more per employee for medical care and $4,400 more per employee for retirement payments than companies in non-metropolitan areas.
- The average dollar amount in benefits received by employees from the participating companies increased from $18,489 in 2005 to $21,527 in 2006.