Tuesday, 24 October 2006
Offering Benefits Still Important For Employers
Even though employer-sponsored benefits are on the decline, many companies are still committed to offering them to their workers. Prudential Financial has released a new study that suggests employers view benefits as a crucial part of attracting and retaining a competitive workforce.
Even so, the cost of offering benefits continues to go up. To offset expenses, many employers are sharing more healthcare costs with their employees. By 2010, the number of employers offering “cost-sharing” plans is expected to double. Many cost-sharing plans deduct a larger percentage of premiums from employee paychecks. Another cost-sharing strategy offers voluntary benefits, with employees paying the entire premium.
An increasing number of employees — called “The Progressives” in the Prudential study — are attempting to reduce costs by improving overall health within the workplace.
“(P)rogressive firms focus on programs that manage risk rather than chase costs, such as wellness and prevention, disease state management, mental health counseling and work/life balance initiatives,” said Ed Baird, the president of Group Insurance for Prudential Financial.
Prudential expects at least 50% of employers offering insurance to be using the Progressive model by 2010.
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