Benefits October 19, 2011

Canadian Employers Report Difficulty Attracting Critical-Skill Employees

October 19, 2011 (PLANSPONSOR.com) - Many Canadian companies are finding it relatively easy to attract or retain workers, with one major exception – critical-skill employees.
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The Towers Watson Talent Management and Rewards Survey found almost six out of 10 Canadian companies (57%) report problems attracting critical-skill employees – compared to 20% for their workforce overall. Forty-three percent also have difficulty attracting top-performing employees. Additionally, more than one third (39%) are experiencing challenges retaining critical-skill employees.  

Overall, 60% of Canadian respondents report that employees have been working more hours over the past three years, and just under half (47%) expect this trend to continue over the next three years. Additionally, a quarter (25%) of the employers surveyed said their employees have been using less of their vacation or personal time off over the past three years.  

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The study also found that almost half (48%) of Canadian organizations are concerned about the long-term effects of changes they made during the recession on their employees’ ability to maintain a healthy balance between work and their personal lives. Employees, who were surveyed separately, consistently ranked work-related stress as the top reason they would leave an organization.   

Given the ongoing economic and workforce pressures, almost two-thirds (62%) of Canadian organizations reported making significant changes in the HR area – reward and talent management strategies, organizational structure, job evaluation process, and competencies – and many expect to continue to do so.  

The 2011 North American Towers Watson Talent Management and Rewards Survey was conducted in May and June of 2011, and includes responses from 98 organizations in Canada and 218 from the United States (see Majority of Companies Expect Employees to Work More Hours).
Compliance October 19, 2011

WI Senate Passes Bill on Adult Child Health Care Coverage Taxes

October 19, 2011 (PLANSPONSOR.com) - The Wisconsin Senate has passed legislation that would enable employers to offer coverage to employees' adult children up to age 26 without employees being taxed on the coverage.
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Business Insurance reports that the measure, S.B. 203, would conform Wisconsin tax law to the federal health care reform law, which requires such an extension of coverage to employees’ children up to age 26. Subsequent Internal Revenue Service rules said the coverage can be extended on a tax-free basis through the end of the year in which the child turns 26.   

Business Insurance said that currently, Wisconsin is the only state that has not conformed its tax law to federal tax law on the extension of coverage to employees’ adult children.   

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More than a dozen states have changed their laws since the start of the year (seeVT Lawmakers Approve Tax Conformity to PPACA). The remaining states either automatically conform their tax laws any time federal tax law changes or do not impose income taxes, according to the news report.

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