The HR Specialist

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If you read only headlines, you may think U.S. employers are slashing employee benefits to the bone. Not so.

“In contrast to media attention on the most severe cutbacks, most companies are staying the course in the benefits arena, with very few taking precipitous action right now,” says a new Towers Perrin survey of 500 firms.

One reason: Over the past decade, rising costs have forced employers to tighten their benefits belts and institute more employee cost-sharing.

But the weak economy is forcing organizations and their employees to make some tough choices, particularly in compensation and benefits. Here are seven key HR trends to look for, plus tips on how to respond:

1. More employees are delaying retirement. Persuaded by deflated retirement savings, 63% of executives say they plan to work longer than they expected to just three years ago, and 52% say they’ll stick around past age 64, says a poll by The Korn/Ferry Institute. Just over half (53%) say their organizations’ retirement benefits are inadequate.

Tip: Be aware that those delays could drive up your company’s health costs. Example: One in five women with postmenopausal osteoporosis is retiring later than expected, even though the disease is limiting their ability to work, says a Harris Interactive survey.

Knowing which retirement-age employees are leaving and when will help you prepare for vacancies. Plus, it’ll give you a chance to encourage older employees to pass along their expertise to younger colleagues.

2. Likewise, dissatisfied employees aren’t quitting. Even those who don’t like their jobs or consider their workplaces hostile are reluctant to quit when new jobs are scarce. That leaves more employees who are “floating” through the job, bumping heads with co-workers or considering litigation.

Tip: Train managers to recognize and mediate peer-to-peer hostility. Research says even little things—such as excluding a co-worker from group lunches and coffee breaks—can be stressful to employees.

Also, work to rein in the increasing amount of office gossip, which typically increases when employees are unsure of the future.

3. A third of employees will skip their vacations this year. Why? CareerBuilder’s annual vacation survey reveals that 71% of those who will forgo their fun say they simply can’t afford a vacation. Another 20% say they’re afraid they’ll lose their jobs if they take time off. Others admit they feel guilty leaving their overworked co-workers to pick up the slack.

Tip: Ask managers to encourage employees to schedule time off. Research shows that workers who use their vacation time are more productive and less prone to job-related burnout.

4. More organizations are offering backup child and elder care benefits. As organizations cut staff, it’s more crucial than ever for all remaining employees to be at work and to be productive. Backup services supply temporary caregivers to employees whose regular arrangements fall through, allowing them to come to work.

Bright Horizon Family Solutions, which provides backup child and elder care services, says it’s seen a marked uptick in business since January.

Tip: This perk isn’t just for working parents with day care kids. Promote your backup care benefit to employees who are caring for ailing spouses or aging parents.

5. Employees are responding to pay-raise alternatives. They aren’t surprised by the “no raise” message anymore. Grateful that they have jobs at all during a recession, overworked employees who believe they deserve pay raises are instead embracing the nonmonetary rewards offered.

Tip: According to consulting firm Human Resources IQ, one of the most appreciated perks is access to company-supplied free tickets to sporting events and concerts—which usually are reserved for managers.

6. Most large firms are offering only defined contribution plans to new hires. For the first time, most Fortune 100 companies are offering their new salaried employees only defined contribution plans, such as 401(k)s, rather than traditional defined benefits (DB) plans, according to research by Watson Wyatt.

Another first: More large organizations are offering hybrid pension plans, such as account-based cash balance plans, rather than DB plans.

Tip: Increase your financial planning and investment education to help employees manage their accounts and answer their questions.

7. Benefits communication is becoming critical—and those who do it well are in demand. In fact, the corporate communications function is growing ever more important as fears about the economy persist. CEOs are looking for people who can develop strategic crisis communications, react quickly and know how to use social media.

Tip: Tailor messages about benefits for employees of various age groups. Work with your organization’s communications department if you have one.