Human Resources: Executive Summary: The Quality of Life

By global standards, the U.S. has a high quality of life and a social safety net that includes programs such as unemployment compensation, welfare and Social Security. But when measured against other developed nations, the U.S. isn’t always at the top of the heap. For example, the U.S. placed 10th in the United Nations Human Development Index 2005. In this ranking of 177 nations, Norway, Iceland and Australia took the top three spots, respectively.

Some key indicators, such as poverty and debt, have been worsening recently. Other factors, such as higher fuel and energy prices, could mean difficult times for the unemployed and for those who already find it hard to make ends meet.

As many as 12.7% of Americans lived in poverty in 2004, up from 12.5% the previous year and marking the fourth consecutive year conditions have worsened, the U.S. Census Bureau reports. Overall, 37 million were impoverished in 2004, 1.1 million more than in 2003.

The U.S. unemployment rate improved between 2003 and 2004, dropping from 6.0% to 5.5%, yet over 8,000,000 have no jobs, the Bureau of Labor Statistics reports. Of those 16 and over, 8,774,000 were unemployed in 2003 and in 2004, and 8,149,000 were jobless.

Several sources concur that many suffer from debt. U.S. credit card loan delinquency is at an all-time high, according to the American Bankers Association. Nearly 5% of credit card holders were late on their payments in the second quarter of 2005, up from 4.76% the previous quarter. Experts don’t predict conditions to improve anytime soon. The American Banking Institute and the Federal Reserve report that in 1980, consumer debt as a portion of disposable income was 10%, but by 2004 it had increased to 13.5%. During that same time period, the number of bankruptcy filings soared from 200,000 to 1.6 million.

So what are employers to do in times when some are already battling high benefit costs? One idea is the establishment of a qualified transportation benefits program that could help workers manage commuting costs. Similar to a medical spending account, the IRS allows contribution of pre-tax income for parking and transit passes. Some other strategies are providing ESL classes or emergency assistance or loans. However, the proportion of employers taking those steps may be dwindling. Results of SHRM’s 2005 Benefits Survey showed that just 6% of surveyed firms offered ESL classes, down from 10% the previous year. Only 23% of surveyed firms provided emergency assistance or loans to their workers, down from 26% in 2001.

Yet at the same time, some firms are developing comprehensive programs that create win-win situations for employers and the workforce. One such company is Worldwide Fulfillment. The Bristol, CT, firm links workers who drive with those needing rides, provides low-interest used-auto loans, coordinates auto repair programs, establishes personal savings accounts and offers parent/adolescent counseling. It also works with local public housing and welfare-to-work programs. Benefits for the company include stronger worker loyalty, better attendance and lower turnover rates, notes spokesperson Daniel S. Saccu. And for workers, about 90% of those once on welfare are now independent.

Communicating with the workforce is crucial. By keeping a finger on the pulse of employees’ challenges, companies can invest in programs that address those needs, improve the quality of life and help workers to help themselves.

To have full access to this report, become a member of i4cp today at www.i4cp.com.

The Institute for Corporate Productivity (i4cp, inc.) improves corporate productivity through a combination of research, community, tools and technology focused on the management of human capital. With more than 100 leading organizations as members, including many of the best-known companies in the world, i4cp draws upon one of the industry’s largest and most-experienced research teams and Executives-in-Residence to produce more than 10,000 pages annually of rapid, reliable and respected research and analysis surrounding all facets of the management of people in organizations. Additionally, i4cp identifies and analyzes the upcoming major issues and future trends that are expected to influence workforce productivity and provides member clients with tools and technology to execute leading-edge strategies and "next" practices on these issues and trends. i4cp is a for-profit company with offices in St. Petersburg, Florida.