HCM Skinny-Employers Shifting Healthcare Increases Away from Employees
It shouldn’t be a shock to anyone that healthcare costs have been consistently increasing year over year. That’s a problem for an organization because benefit spend is typically the second largest expense, right behind your employee expenses. With the market becoming more competitive from a talent standpoint, companies are forced to offer rich benefit plans to retain their current talent and have the necessary ‘perks’ to attract top candidates.
With healthcare costs increasing, most organizations are taking the approach to minimize the exposure that the employees have from increased healthcare costs; companies are deciding to take on a larger portion of that burden so that employee’s plans can be somewhat ‘affordable’.
It’s great that companies are doing this, but I rarely see organization’s market this to their employees or during the recruitment process. Benefits are such a large expense that it is necessary to let employees know how much money you are actually saving them.
Companies need to make sure that they have the correct tools in place so that they can produce Total Compensation statements that show the employees their true compensation. Employees care about compensation, they always have and always will. Don’t’ be afraid to let employees know how much you are actually investing in them on an annual basis; that could be the difference between losing or retaining key talent.
Top quote from article:
Couple that with low unemployment numbers, companies are turning to a variety of strategies to attract and retain talent, including rethinking how they manage health care cost increases. Marlene Setter, Author for Benefits Pro
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