Considering cutbacks? You’re not alone
September 29, 2008 by Bill MeltzerPosted in: Compensation, Healthcare costs, In this week's e-newsletter, Latest News & Views, Uncategorized
For many employers, the struggling U.S. economy could soon have a direct effect on benefits and compensation.
In a recent survey, 35% of benefits managers admitted their firm is seriously pondering cutbacks in 2009 or already made some downward adjustments this year. Paid-time-off benefits are the most likely to be scaled-back, although the adjustments are typically minor. Other affected programs:
- health benefits. Although yearly cost increases have slowed, the burden of managing them has grown. Many firms reluctantly raised employee cost-shares again or cut benefits
- profit-sharing programs. Revenue is up at many firms, but profits are down. As a result, employee shares have been affected, and
- retirement benefits. Relatively few employers (less than 2%) have had to scale back annual matching contributions to employee accounts, but it’s an option in extreme cases.
October 2nd, 2008 at 2:45 pm
Do you have any informaiton on Employee sponsored Health Reimbursement Accounts in lieu of providing Health Insurance coverage?
October 3rd, 2008 at 9:59 am
Our benefit package included a Defined Benefit Plan paid entirely by the company. It ended on December 31, 2007 and was replaced by a 401K plan with a maximum 2% match. Big change for our long-time employees. Then in an effort to keep our health insurance deductible to our employees at $250, we increased our total deductible to $5000.00 with the facility paying the next $4750.00. This can be look upon as an ok swap unless you happen to be one of those employees who is healthy and uses health insurance for wellness checkups only. Then when you consider in February of 2007 our Administration decided it would no longer pay 100% of the single employee rate for full-time employees or 50% for qualifying part-time employees, you can see where alot has been passed onto the employee.