A healthy dose of good news and a load of not-so-good tidings mark the summer survey of studies that measure the pulse of the American work force.
It’s good, if not a bit unusual, to hear that 66 percent of the U.S. work force is very or somewhat satisfied with their compensation and benefits, according to Hudson, a national human resources consultant.
Troubling, however, is Hudson’s findings that 34 percent rarely or never receive a formal review from their employer, while another 34 percent that do are unsure about the review criteria.
Worse, confidence among U.S. workers declined in May to the lowest point since December 2003, according to Hudson’s Employment Index. Nineteen percent of workers surveyed expect their companies to lay off staff this summer. Slightly more, 22 percent, were nervous about losing their own jobs.
Boomer replacements
It’s common knowledge that baby boomers are starting to retire. What isn’t known is how employers are going to replace their experience and organizational knowledge.
Few companies are taking seriously the training challenges to develop competent replacements for retiring boomers, the Society of Human Management Resources has found.
A minority among 248 randomly sampled employers uses formal methods of employee development, including succession planning, job rotation and career mentoring, the society found.
“Many employers feel that the knowledge, experience and skills employees acquire in their day-to-day tasks is sufficient for developing talent,” said Debra Cohen, the society’s chief knowledge officer. With so many key senior employees positioned to retire soon, she said, “Companies need to take formal steps to ensure smooth transitions and business continuity.”
Vacation blues
It’s comforting to note that 82 percent of U.S. workers plan to take time off this summer. Not so comforting is that 23 percent will be checking into work by phone or e-mail on most days, if not every day, while on vacation, a Hudson survey disclosed.
So, don’t be surprised that more than 34 percent return to work more stressed or just as stressed as when they went on vacation.
What retirement?
As the debate over the future of Social Security continues, U.S. workers are showing little interest in funding their own retirement through employer-sponsored programs.
One in five workers did not contribute enough to their company 401(k) plans to qualify for their employer’s full matching contribution in 2004, according to Hewitt Associates Inc., a human resources consulting firm.
Only half did anything to reallocate their holdings, something that’s necessary to maximize returns under any private account, including President Bush’s proposed private Social Security accounts.
Scott Revare, founder of Smart401k, said today’s workers are often overwhelmed, and as a result remain inactive, “leaving their funds in the equivalent of cash reserves,” he said. “That’s extremely risky in the long run, as they will miss out on potential higher returns that could eventually secure their retirement.”
Health care update
Readers here are quite aware of the column’s advocacy of a universal health care system for the U.S., similar to Canada’s. Opponents were quick to e-mail, wondering about the Canada Supreme Court ruling to allow private insurers to compete with the country’s previously exclusive National Health Plan.
Their tone, which could be summed up as a “nah-nah-nah, told-you-so” that Canada’s system is no answer, may be slightly overblown.
The ruling was not a devastatingly fatal blow to Canada’s medicare. Indeed, most analysts said the court was telling lawmakers that their failure to fully fund the program had caused unacceptable periods of waiting for basic medical services in Quebec and some other provinces. Meanwhile, recent surveys show 80 percent of Canadians are satisfied with their access to the health care system.
Ironically, the decision came simultaneously with General Motor’s decision to layoff 25,000 workers and close several plants in an effort to restore profitability. Not lost among analysts is that GM’s soaring health care costs add more than $1,500 to each U.S.-built vehicle, compared with $200 to $300 for each Canadian car.
Guess where most of the plant closings and layoffs will be? Certainly not in Canada, which has received praise for its health care system from all Big Three car manufacturing leaders.
Meanwhile, Americans get even more pressed to access health care. The journal Health Affairs reports that the 16 million underinsured Americans face the same health care access difficulties as the 45 million without medical insurance.
Its survey showed 38 percent of the underinsured usually don’t fill prescriptions, 32 percent elect not to see a doctor even when facing a medical problem and 30 percent avoid tests, treatment or follow-up care – all similar to the experiences of the uninsured.
Just call it the U.S. equivalent of long waiting lists.
Write Eric Zoeckler at The Herald, P.O. Box 930, Everett, WA 98206 or e-mail mrscribe@aol.com.
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