INDUSTRY SNAPSHOTS. Public Sector

Transcription

1 INDUSTRY SNAPSHOTS Public Sector 1

2 People are the Public Sector s key resource. Not only in the good times, but also in budget reduction times, the Public Sector looks at changing operating models and ways of working to drive up productivity levels and reduce staff costs. That commitment to people has to be backed up by actions and words. Consequently, there is real opportunity for HR to be at the heart, and not just supporting, the transformation in public services. Benefits are one way the Public Sector can demonstrate their commitment to people. 2

3 Industry Challenges Public sector organizations are faced with unprecedented challenges. Budgetary pressures and a growing demand for financial accountability, combined with changing public expectations of Public Sector services, require new approaches and solutions. Local, state, regional and national bodies are therefore seeking to adopt new processes, techniques and technologies to increase process efficiency, reduce costs, improve transparency and encourage greater accountability. 1 Change is paramount in the Public Sector. Whether it s a presidential election or local election, change in administration can mean change in how things run as well as who may be running the organization. Among the people challenges affecting the industry are: 2 41 % Of public sector employers say managing the productivity of their workforce is their company s most important business objective. 34 % Say employee turnover results in the most productivity lost within their organization. 28 % Say taking care of their employees by offering the widest range of benefits options is the most important objective of their benefits program. 3

4 Industry Challenges (cont.) Many Public Sector employees have access to Associations which have a unique opportunity to fill gaps in employer benefits packages. Core concerns of Public Sector Associations include: 1. Membership acquisition and retention Reaching new members and keeping current ones engaged requires a strong value proposition, effective communication and useful benefits for members. 2. Non-Dues revenue The cost of membership is a challenge for most organizations. Unsurprisingly, 25 percent of membership associations say that increasing non-dues revenue is one of their top goals.3 3. Member quality of life Many association members are financially strapped 40 percent of working Americans say they don t have $2,000 for a financial emergency,4 making it difficult for them to meet their short-term goals and prepare for their long-term needs. 4

5 HR Challenges Working as a teacher or as a local government public official may be a lower-wage occupation, and as such, employees heavily rely on the benefits included with working as a public servant. The Public Sector industry faces HR challenges specific to the industry as well as to HR in general: 1. High turnover Employee turnover results in the most productivity lost within the Public Sector industry. 3. Employees lack of financial well-being These statistics give a picture of the status of employees financial wellbeing: 6 2. Importance of benefits 28 percent of public sector employers say taking care of their employees by offering the widest range of benefits options is the most important objective of their benefits programs % 68 % Of employees would not be able to pay less than $1,000 for out-of-pocket expenses if an unexpected serious illness or accident occurred today. Say a benefits package offering is extremely or very important to their job satisfaction. 57 % Say it s extremely or very important to their employer loyalty. 35 % Say improving their benefits package is one thing their employer could do to keep them in their jobs. 5

6 Trends Trends to watch in the Public Sector industry includes: 1. Changes affect participants While almost half of public education employers are focused on stability, mirroring a trend among all employers, it is not as even in state and local governments, with an even larger percentage 65 percent focused on creating stability amidst change Budgeting for benefits Higher education employers are more likely (41 percent) than their K-12 counterparts (26 percent) to change plan design to help balance their budgets. However, K-12 and higher education employers are about equally as likely to consider increasing employee contributions and to encourage competitive bidding. On the state and local government side, 66 percent of public sector government employees agree that non-medical benefits such as critical illness and accident coverage can help limit their out-of-pocket expenses. On the other hand, government employers believe that voluntary benefits can help employees pay for out-of-pocket medical expenses Enhanced benefits packages In the current marketplace, employees have more flexibility to seek out employment opportunities that better fit their needs and wants rather than remain in a position for its job security. In fact, 45 percent of employees say that they would be likely or very likely to look for other jobs outside their current organization within the next year. 9 As voluntary benefits have become more mainstream, they play an important role in enhancing benefits packages to satisfy employees needs. Increasingly, embracing non-traditional voluntary benefits is becoming a method of providing enhanced benefits packages. Purchasing Power s employee purchase program is one of the non-traditional voluntary benefits that supports key HR objectives by providing a no-cost, no-liability benefit that gives employees a manageable, convenient way to access products and services including educational services that are often out of reach. 4. Member benefits that resonate Public Sector Associations are finding that attracting and retaining members often depends on their member benefit package. With Purchasing Power, Associations can enhance their membership package, increase member satisfaction and add to their non-dues revenue. 6

7 Citations 1 Citi Perspectives for the Public Sector, Aflac WorkForces Report Marketing General Membership Marketing Benchmarking Report Harris Poll on behalf of Purchasing Power. 5, Aflac WorkForces Report. 7 MetLife 14th Annual Employee Benefit Trend Study 8 Employee Benefit Adviser, Public Sector Employees, Cort Olsen, October 4, Society for Human Resource Management (SHRM), Employee Job Satisfaction and Engagement: Revitalizing a Changing Workforce, April About Purchasing Power We help employees who are underserved by traditional financing options access life-enhancing products and services. Employees can purchase the items they need and affordably spread payments across 12 months to give them peace of mind and control over their finances. Our pricing is transparent with no hidden fees, no interest, no credit checks. Why We Do It To improve employee financial well-being To empower people to take control of their lives To help organizations recruit and retain employees Visit us at PurchasingPower.com/Employers. Purchasing Power is a registered trademark of Purchasing Power, LLC. Other trademarks or registered trademarks used are the property of their respective owners. Pub. Date Purchasing Power, LLC. All rights reserved * Definitive 2016 customer survey responses