Benefits: The Good News. Sort of.

Posted by: Emily Thornton on October 1, 2009

Depending on your view of the general state of corporate benefits, here’s some potentially good news: They’re unlikely to change this year, according to a recent study by human resources consultant Hewitt Associates.

When the financial crisis hit last year, many companies slashed their benefits plans as a way to cut costs. But this year American employers are taking a “wait and see” attitude, Hewitt reports.

Still, employees will likely end up footing larger bills. Hewitt estimates that health care costs will rise 6% to $9,120, up from $8607 in 2009. At the same time, employees’ share of the cost, including premiums and out-of-pocket expenses, is expected to rise 10% to $4,023.

That rise in cost could be tough for workers if they see just a 1.8% salary increase this year, like they did in 2009, the report notes.

Reader Comments

Derek Irvine, Globoforce

October 3, 2009 10:21 AM

Some additional good news -- while companies are slashing bonus budgets by about 24% (as compared to 2007), they are equally increasing investments in recognition programs. Why is this good news? Bonuses target a small cadre of elites and rules for achieving the bonus often seems to be a moving target. Recognition, on the other hand, is available to all as an after-the-fact show of acknowledgment and appreciation for a job well done. (Research from WorldatWork/Watson Wyatt's new "Looking toward Recovery - Realigning Rewards and Re-Engaging Employees" report available here: http://www.worldatwork.org/waw/adimLink?id=34555

OXYGEN

March 28, 2010 6:24 AM

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