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."
Copies of the 2005 HR Technology Trends Survey can be found here.
About Watson Wyatt
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.
Contact
Ed Emerman, (609) 452-5967, eemerman[at]eaglepr.com
Emily Rieger, (703) 258-7634, emily.rieger[at]watsonwyatt.com
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