"The percentage of benefits employees received in 2001 increased despite a slow economic recovery," said Bruce Josten, Chamber executive vice-president. "The increase in benefits shows that employers have continued to make benefits a priority and recognize the importance of benefits in retaining employees in their companies."

Benefit costs averaged 39 percent of total payroll costs among employers surveyed, a four percent increase from the previous year (37.5 percent). The most common benefits offered by employers include health insurance, paid vacation, holiday benefits, and retirement and life insurance benefits.

In addition, medical benefits accounted for 11 percent of total gross payout, the largest share of employee benefit costs. Compensation for time off followed closely as the second-largest share of benefits cost to employers, averaging just over ten percent of payroll costs, followed by retirement and savings plan shares, which accounted for an average of eight percent of payroll.