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Is benefits information proprietary / a trade secret of sorts?
Benefits & Compensation
Is benefits information proprietary / a trade secret of sorts?
Exchange ideas about health plans, retirement, work/life benefits, and employee assistance.
Is non-governmental benefits information proprietary--something like a trade secret? If so, that would explain the high price of purchasing benefit surveys. Seems a shame to have to pay such high pric
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Is benefits information proprietary / a trade secret of sorts?
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Is benefits information proprietary / a trade secret of sorts?
posted at 8/27/2009 12:05 AM EDT
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Posts: 49
First: 7/18/2009 Last: 8/17/2011 |
Is non-governmental benefits information proprietary--something like a trade secret? If so, that would explain the high price of purchasing benefit surveys. Seems a shame to have to pay such high prices to see how one's own organization's benefits compare to others, e.g. things like PTO accrual schedules and caps.
Of course companies with overly generous PTO are probably happy to provide that data--great recruiting tool. How do you learn what benefits other orgs in your industry / profession offer, and where your org's benefits sit in relation to others? Do you post details of benefits information online? If not, why not? e.g. specific things like PTO for years or service; not generic bulleted lists like "we have a 401(k); we offer paid vacation" (who doesn't; especially for anyone hiring professionals / knowledge workers), etc. Do you consider your Employee Handbook confidential? Wondering what some Best Practices are. Thanks. Mike |
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Is benefits information proprietary / a trade secret of sorts?
posted at 8/27/2009 4:58 AM EDT
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Posts: 1047
First: 4/11/2002 Last: 9/14/2011 |
I wouldn't say it's proprietary, but I also don't think companies will take out an ad on a billboard advertising the specifics. There are a lot of surveys that are free, while some consulting firms will charge a nominal fee for any surveys they produce to cover their expenses.
Additionally, many consultants, such as myself for example, can provide extensive benchmarking on most types of benefits. This can be done by region, industry, size of company, etc. |
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Is benefits information proprietary / a trade secret of sorts?
posted at 8/27/2009 5:18 AM EDT
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Posts: 2146
First: 2/15/2006 Last: 9/14/2011 |
Since benefits could be considered part of overall wages and compensation, employers must be careful not to violate the Sherman Act -- specifically wage fixing by comparing wages and benefits too closely or directly.
Third party surveys give companies an arm's length transaction away from wage fixing while still allowing for information to be passed by region, industry, etc like mroberts stated. So while it is not illegal for companies to give out the information/post it, it is also usually not in their best interests to give so much data up front/directly to competitors or other employers in the area. And many times, certain benefits such as paid time off can be negotiated and different for each employee or different levels of employees. As to whether handbooks are confidential, that is up to the individual company/employer to decide. |
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Is benefits information proprietary / a trade secret of sorts?
posted at 8/28/2009 12:11 AM EDT
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Posts: 49
First: 7/18/2009 Last: 8/17/2011 |
mroberts7, you wrote:
/> Some consulting firms will charge a /> nominal fee for any surveys /> they produce to cover their expenses. Thanks mroberts. What range of cost do you consider to be a nominal fee? What may be a fee in name only to a large company may be a large expense for a what I would call a micro business (e.g. 10 employees or less). Rrupert, you wrote: /> Since benefits could be considered part of /> overall wages and compensation, employers /> must be careful not to violate the Sherman /> Act -- specifically wage fixing by /> comparing wages and benefits too closely /> or directly. Interesting, thanks. Never would have thought the display of benefits data could expose a company to antitrust litigation. Just to be sure, you mean non-governmental employers, correct? What about non-profits, private colleges, etc? Any differentiation there? Again, never would have thought an organization posting specifics about its PTO would be a liability--if the org had generous PTO. /> Third party surveys give companies an /> arm's length transaction away from wage /> fixing while still allowing for /> information to be passed by region, /> industry, etc like mroberts stated. Ah. /> So while it is not illegal for companies /> to give out the information/post it, it is /> also usually not in their best interests /> to give so much data up front/directly to /> competitors or other employers in the /> area. So lack of transparency in benefits data is par for the non-governmental course. /> And many times, certain benefits /> such as paid time off can be negotiated /> and different for each employee or /> different levels of employees. What do you see as different levels of employees? I see this as true when speaking about Director, Executive, and Managerial positions. But not "rank and file" personnel. Did I miss any categories? Could you give an example? Thanks as always for the kind and thoughtful reply. |
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Is benefits information proprietary / a trade secret of sorts?
posted at 8/28/2009 4:06 AM EDT
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Posts: 2146
First: 2/15/2006 Last: 9/14/2011 |
I have no experience with non-profits, so I can't answer how or if the Sherman Act covers them. But the Sherman Act does cover private and publicly traded companies. Not sure whether it covers public(gov't) -- but I suspect when they wrote the law, they left themselves out of it.
As for who can negotiate vacation, it's going to depend on company policy. I know some companies like Hewlett-Packard who won't negotiate even for top executives. Others will negotiate with anyone who asks. Especially if it is a situation where the applicant already has a vacation scheduled before they earn any PTO. But usually I see that negotiation at mid-management level and above UNLESS there is a large need to fill a position and very few candidates to fill it. |
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Is benefits information proprietary / a trade secret of sorts?
posted at 8/28/2009 5:16 AM EDT
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Posts: 1047
First: 4/11/2002 Last: 9/14/2011 |
I consider a nominal fee between $1000 and $2000. While this could be perceived as high to a micro-company, in reality it's not considering what it should provide. If a company is trying to determine the correct number of paid time off for employees or a competitive contribution for health insurance, the cost of such a survey is worth its weight in gold. Keep in mind that these surveys do not have to be purchased annually. Health care benefits do not change dramatically from year to year. For example, according to the 2008 Kaiser survey, employees contributed between 14% and 16% for employee only coverage between 1999 and 2008, while employees electing family coverage paid between 26% and 28% during those years. That's a remarkable consistency. |
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Is benefits information proprietary / a trade secret of sorts?
posted at 8/28/2009 7:12 AM EDT
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Posts: 2146
First: 2/15/2006 Last: 9/14/2011 |
And that Kaiser report is a really good one that you can find online free. If you don't mind data that is a bit outdated, Bureau of Labor Statistics also has one, but again it is a few years old by the time it is published.
I do think that it is smart to find the information you are looking for, just for comparison. Sometimes if you are a participant, you can get it much cheaper, so look in to participating especially in industry standard ones. Check with the major consulting firms (Mercer, Watson Wyatt, Hewitt, etc) to see what industries they generally survey. It used to be that each had their niche. Also try to get on their mailing lists as they often send out articles/newsletters that can give some needed information. |
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Is benefits information proprietary / a trade secret of sorts?
posted at 8/31/2009 11:46 PM EDT
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Posts: 49
First: 7/18/2009 Last: 8/17/2011 |
Thanks mroberts7 and rrupert. Anyone know when the BLS is due for producing and publishing new surveys? Is there any regularity there?
/> I do think that it is smart to find the /> information you are looking for, just for /> comparison. For recruiting purposes, I do think it is important not only to be competitive, but to go beyond the averages. As no one employer wants merely a so-so employee, I'm not sure great candidates will easily settle for average benefits. At least in competitive industries, I think it's quite possibly a mistake to find the average, go with it, and consider it a day. Might work well in a down economy or in a profession where talent is in oversupply. But otherwise, I'm unconvinced that average is good enough. Anyone here working in an industry where there's still a lot of competition for talent feel that average benefits are sufficient in terms of recruitment? If doing "average" good enough? Or would doing better help you build better teams? |
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Is benefits information proprietary / a trade secret of sorts?
posted at 9/1/2009 5:28 AM EDT
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Posts: 1047
First: 4/11/2002 Last: 9/14/2011 |
Personally, I think more companies should go above and beyond with their benefits in times like these. If you factor medical insurance as a part of total compensation, to enhance benefits or not reduce them, is a very small fraction of the pie. For example, if the average medical plan annualized is say $8000 (this is averaged between single and family) and to lower office visit copays from $20 to $15 is a 2% load (this is theoretical), the difference is only going to be $160. This isn't much of a fraction when dividing it by the annualized premiums and an employee's salary. Yes, I know medical premiums for a lot of business are going up 10%+, so this needs to be taken into consideration, however, if you have more than 50 employees, it's pretty easy to get creative and come up with a negative renewal.
As for PTO, I lean European, so you don't need to convince me giving your employees a couple extra days off is a bad thing. I'm a big believer in creating more productive employees and ensuring they take the time off they earn is part of the equation. |
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