Workers At Risk, Feeling Trapped

September 5, 2001 (PLANSPONSOR.com) - Only a fourth (24%) of American workers are committed to their employers and plan to stay on for at least two years, while over a third are at risk, according to a new survey by Walker Information.

The survey found that 34% of employees are “at risk” neither committed nor planning to stay. An even larger group (37%) was identified as “trapped”  not committed to their employer, but planning to stay on at least two years.

The results of the 2001 National Employee Benchmark Study are bad news for employers, with the replacement costs estimated to represent 18 months of those workers salaries, according to a study by consultant Hay Group cited by the survey’s authors.

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Above and Beyond

Just as critically, the survey notes that committed employees report a willingness to do things above and beyond the normal job requirements and would recommend their firm to other employees.

Just over half of all employees said they believe their firm treats employees fairly, with 50% acknowledging that their pay is fair, while a somewhat smaller 45% said workplace policies were carried out fairly. In addition,

  • 44% say they experienced genuine care and concern from their employers
  • 45% believe their firm cares about developing people for long-term careers
  • 41% believe their employers trust them.

Less than half feel encouraged to try new ways of doing things at work.

Unionized workers were more likely to fall in the “trapped” category (53% versus 34%), while just 25% of union members thought their employer showed genuine care and concern, versus nearly half of nonunion workers.

The survey consisted of 2,795 self-administered questionnaires collected during the second quarter of 2001 and represents employees across the United States.

Bush Budget Extends Employer Tax Breaks

April 9, 2001 (PLANSPONSOR.com) - President Bush's budget would extend all tax breaks currently scheduled to expire in 2001, including several of key interest to employers.

The budget, submitted earlier today, opted for short extensions to give the Administration more time to decide which breaks should be extended for longer, or made permanent, according to Dow Jones.

Among the extensions are:

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  • the Work Opportunity tax credit, a benefit for employers that hire certain categories of individuals traditionally hindered from entering the workforce
  • the Welfare-to-Work tax credit
  • employer-provided educational assistance

Other programs impacted are:

  • provisions that protect various tax credits from being reduced or eliminated by the individual Alternative Minimum Tax
  • foreign tax relief for financial institutions
  • relief for marginal oil and gas wells
  • tariff concessions for developing countries under the Generalized System of Preferences
  • the Qualified Zone Academy Bond (QZAB) program for school reconstruction

The cost of extending all eight programs for one additional year would be $1.61 billion in fiscal 2002, which begins Oct. 1, 2001, or $3.41 billion over the coming 10 years (most of the proposed extensions affect revenue beyond the initial year).  However, roughly half that amount is associated with the provision affecting the foreign operations of financial service companies.

– Nevin Adams            editors@plansponsor.com

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