Magazine article Personnel Journal

Most Companies Are Cutting Benefits, but a Few Are Adding Them

Magazine article Personnel Journal

Most Companies Are Cutting Benefits, but a Few Are Adding Them

Article excerpt

In today's economic environment, most organizations are looking for ways in which to cut costs without cutting the work force. Many companies are accomplishing this by slashing employee benefits. But according to Money magazine's annual ranking of organizations that have the best benefit packages, not all major corporations are following suit.

In its May 1993 issue, Money selected IBM as the company having the most-extensive benefits package. Although IBM made some cuts in 1992, its plan still boasts of such perks as free is medical and dental coverage It also offers free lifetime family health insurance for retirees who have worked for the company for at least 15 years.

John Boudreaux, a spokesperson for the computer giant, says that IBM's benefits program is an important part of the company's total compensation package. "This is a portion of our overall HR strategy to attract and retain the best employees. It's part of our attempt to be the employer of choice," he says.

Money made its top-ten selections from a pool of organizations that had 10,000 or more employees. The magazine based its ratings on such factors as generous retirement plans, long vacations, better-than-average medical coverage and other extravagant extras.

Trailing IBM, the other nine organizations that made the list were (in descending order):

* Procter & Gamble

* Xerox

* Eastman Kodak

* Citicorp

* Hewlett Packard

* AT&T

* Merck

* Quaker Oats

Although Money named these companies as benefits leaders, most packages were more conservative than last year's. According to Money, the majority of the top ten businesses trimmed back their benefits for employees in 1992. …

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