The downturn of the economy did more than just lead to people losing their jobs. For those who did get to keep their jobs, many perks and benefits were cut, due to cost saving and companies being wary of the economy. 401k contributions, tuition reimbursements, even holiday parties were cut across the board.

The benefits which tend to be hit the hardest and earliest are education related perks. According to a survey conducted by the Society for Human Resource Management, companies who reimbursed for undergrad/graduate classes decreased from 5% to 4% in 2009. Along with general programs, M.B.A reimbursements declined from 37% in 2008 to 29% in 2009.

Even with technological advances which allow for easier telecommuting, companies held back on allowing employees to work remotely. A June 2009 report from IT consulting firm – International Data, suggests that employees are returning to a more traditional role. There are a couple of reasons listed as to why this is. First, is that companies are a bit more wary of allowing employees to work off site. More importantly, is the psychological effects of an employee who works remotely.

Justin Jaffe, an IDC analyst stated, “When times are tough, telecommuters will take refuge in the corporate office, maybe feeling vulnerable or exposed in not being where the action is.”

While many benefits are still tanking, 401(k) contributions are seeing a rise after the down economy. While during 2008-2009, many companies stopped matching employee’s 401(k) investments. However, according to a Hewitt Associates survey, 80% of the companies who had stopped matching contributions plan to do so again in 2010.

Last, and actually the least important benefit being done away with, are holiday parties. The Society for Human Resource Management survey showed that companies who host holiday parties have been decreasing since 2006, and will continue to decrease. Next year, 15% of the respondents said they will either reduce or eliminate holiday parties.

It’s never fun to write a negative article, but it’s important to note the trends companies are adhering to during the tough economic climate. It’s certainly encouraging to see 401(k) investments matched again. Hopefully, we can see other perks get in an upswing trend.

This entry was posted on Thursday, April 15th, 2010 at 8:30 am and is filed under Uncategorized. You can leave a response, or trackback from your own site.

About the Author: John is a staff writer for WebProNews. Visit WebProNews for the latest ebusiness news.