Posted by: Lauren Young on August 13, 2009
Some good news for employees on the benefits front: 24% of employers plan to reverse 401(k) match reductions in the next 6 months, a new Watson Wyatt survey says. And 33% of employers that froze salaries plan to unfreeze them within the same period.
“Some employers are seeing the light at the end of tunnel and feeling optimistic about the prospect of improved business results,” said Laura Sejen, global director of strategic rewards consulting at Watson Wyatt said in a press release. “However, even as some of the program cuts are rolled back, many employees are facing smaller raises, lower bonuses and higher healthcare costs.”
Healthcare seems to be the main area where employees won’t see much relief.
Watson Wyatt’s findings include news that:
* 66% of companies that increased the percentage that employees pay for healthcare premiums do not expect to reverse that decision.
*40% of employers are planning to shift more healthcare costs to workers by increasing the percentage of premiums they pay.
* 41% of respondents expect to increase the deductibles, copays or out-of-pocket maximums for their 2010 health care plans.
Watson Wyatt’s latest bimonthly survey was conducted in August 2009 and includes responses from 175 large employers.
What do you think? Do you think companies are too optimistic about the future or too realistic about healthcare costs?