WASHINGTON, November 15, 2005 - Despite the growing use of the Internet for personal transactions and the widespread availability of customized information on health care and retirement benefits, relatively few companies offer workers online access to information about their total compensation, according to a survey by Watson Wyatt Worldwide.
In its survey, Watson Wyatt found that more than half of surveyed employers (55 percent) offer workers Web access to personalized health benefits information, while 52 percent provide access to retirement benefits information. Just under half (46 percent) offer paycheck information online. However, fewer than two out of 10 employers (16 percent) provide online information about total compensation. The survey results are based on responses from 135 employers.
"Employers have a great opportunity to leverage the Internet and increase the efficiency of their HR processes," said Amy Litten, personalized communication practice leader at Watson Wyatt. "However, many employers haven´t stepped up to the plate to take full advantage of what the Internet has to offer."
The Watson Wyatt survey also found a sharp increase in the number of Web-based HR transactions. According to the survey, 39 percent of 401(k)/savings plan transactions now take place on the Web, up from 30 percent in 2002. In addition, almost one-quarter (24 percent) of health and welfare benefit transactions and 16 percent of "life events" transactions - such as marriages, births and retirement - are managed online. These figures are up from 20 percent and 5 percent, respectively, in 2002.
Average Percent of Web-Based HR Transactions
HR Transaction 2002 2005
Savings Plan 30% 39%
Health & Welfare 20% 25%
Life Events 5% 15%
Stock Plan 13% 14%
Pension Plan 16% 12%
"The best-practice companies understand that web-based automation can significantly streamline the cost of HR operations," said Gary Kilzer, East Division leader of Watson Wyatt´s technology solutions practice. "In addition, our 2005 Human Capital Index confirms that organizations that process a higher percentage of their personal detail changes, benefits, retirement and stock option/stock plan transactions online outperform other firms financially by a significant margin."
For a copy of Watson Wyatt´s 2005 HR Technology Trends Survey, please visit www.watsonwyatt.com.
About Watson Wyatt Worldwide (NYSE:WW) is a global human capital and financial management consulting firm. The firm specializes in employee benefits, human capital strategies, technology solutions, and insurance and financial services and has 6,000 associates in 30 countries. The firm is located on the Web at www.watsonwyatt.com.
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Source: HRmarketer.com
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