BLR’s annual survey of benefits shows a slowing in healthcare cost increases, rising deductibles, and a quarter of employers paying their workers serving in the military.
The results of BLR’s annual survey of benefits paid by U.S. companies are in. Here’s what they show. And here’s how to get the report sent to you every year.
It’s no secret that these days, benefits, and especially healthcare benefits, make up an enormous part of total employee compensation. That makes it vital that you control what you spend.
You don’t want to spend too little. Talent these days is too rarely found to hand it to competitors because they offer a better benefits program. But you also don’t want to spend too much. If you need the reason why, just ask any stockholder of a U.S. airline or auto company.
To help you stay competitive, without overpaying on benefits, BLR carries out an annual survey of what companies nationwide are providing their workers. Some 4,000 companies take part, and results are reported by region, company size, and type of industry. They’re further broken down by benefits paid to exempt and nonexempt employees, in both office and plant settings.
Here are some of the highlights of the 2007 Survey of Employee Benefits:
Healthcare costs rising, but not so much. Nobody needs to tell you that employee health care costs a lot more than it used to. In 1996, average annual cost per employee was already $3,173. Now it’s $6,275—nearly double. The good news is that the rate of increase is steadily declining. From budget-killing 14 percent in 1996, the rate has now dropped to just 3 percent a year in 2006. Most economists expect this decline to continue in the year ahead.
Know what competing companies are paying right in your state with BLR’s Employee Compensation [in Your State] program. Try it for 30 days. Click here.
Deductibles increasing … much. One way employers have controlled healthcare costs is to raise employee deductibles. Of employers surveyed, 18 percent built a deductible of more than $1,000 into their programs in 2004. That figure is now over 30 percent. Among employers with fewer than 100 workers, it’s 37 percent.
… And they’re still headed up. The survey also asks employers their intentions for the coming year. In 2007, 44 percent of companies surveyed plan to push co-pays higher, 36 percent will increase deductibles, and a whopping 68 percent plan to charge higher premiums.
Domestic Partners. More employers surveyed are now providing healthcare benefits to domestic partners, defined as unmarried cohabitants of either sex. In 2003, only 13 percent offered such coverage. That figure has now jumped to 23 percent in the office setting. Domestic partner offerings are at 17 percent among employers in plant settings.
Paying America’s Bravest. The Uniformed Services Employment and Reemployment Rights Act (USERRA) guarantees workers serving in the military the right to return to their jobs, but it doesn’t demand they be paid while in the service. Nevertheless, some 21 percent of employers surveyed do pay full salary during military leave. That figure is up from only 15 percent in 2005, but it’s down from 33 percent in 2003. Why the roller-coaster ride? To misquote the popular TV show expression, “survey doesn’t say!”
Check out your state’s edition of the Employee Compensation program for 30 days at no cost and no risk. Click here. Cost equivalent to purchase: Just $1.52 a working day!
The Survey of Employee Benefits described above is part of BLR’s Employee Compensation in [Your State] program. This unique product, for more than two decades, has told thousands of employers what’s being paid by similar companies for similar jobs right in their state, enabling them to stay competitive without overpaying, right in their own job market.
Six updates a year
Published in separate editions for 43 states plus the District of Columbia, the program also includes a full compensation administration tutorial and a digest of state and local compensation law, helping you stay both efficient and legal. There are six updates a year, plus a monthly newsletter. And two additional reports besides the benefits report, focusing on exempt and nonexempt compensation. There is no extra cost for any of this added material. And the total program comes at a price equivalent to $1.52 a working day.
If your responsibilities include compensation, we recommend you take a look at the Employee Compensation in [Your State] program. We’ve arranged for Daily Advisor subscribers to review their state’s version for up to 30 days at no cost and no risk. Click on the No Risk Trial link below and we’ll be happy to arrange it for you.
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Are You Paying Your Workers Too Much?
Just like home prices, pay rates differ by location. So if you’re going by national averages, you may be paying too much … or too little. Find out in your state’s edition of BLR’s Employee Compensation in Your State program. Updates, salary and benefits survey results, and newsletters all included! Yours to try at no cost for 30 days! Read More