Despite Escalating Costs, Workscape/HCI Survey Results Indicate Employee Healthcare Benefits Aren't
A recent study conducted by Workscape, Inc., a leading provider of outsourced benefits and talent management solutions, and the Human Capital Institute (HCI), a professional association and think-tank advancing the science of strategic talent management, revealed that even in the midst of this economic crisis, the vast majority of employers are not reducing healthcare benefits or forcing workers to shoulder more of the costs.
The survey, aimed at understanding how the recession is affecting human resource-related practices among North American companies, showed that despite extreme economic pressure, most (59 percent) of the 308 respondents indicated that they are not shifting a greater percentage of health care expenses to their employees and only 20 percent indicated that they are reducing or reconstituting benefits offerings.
The survey did indicate, however, that employers are addressing economic pressures through other means. Nearly half -- some 48 percent -- of respondents indicated that there are no planned merit increases and 37 percent are reducing or ceasing bonus distributions this year.
"The fact that most companies are not decreasing their commitment to employer-sponsored health benefits, even though they are often the costliest of benefits, underscores the critical role of such plans in the overall compensation mix," commented Tim Clifford, President and CEO of Workscape. "Most organizations realize that in order to survive the recession and be poised for growth when the economy rebounds, employees must remain healthy and have peace of mind knowing that their families are protected."
There are, however, some measures being taken by companies to mitigate increasing healthcare costs. Forty-four percent (44%) of respondents indicated that they offer at least one high-deductible healthcare plan or consumer-driven healthcare plan (CDHP) to their employees. CDHPs are healthcare plans that typically require a lower regular premium
