Employers adjusting benefits spending habits to focus on health care

Employers are spending more money to keep their employees healthy, even if it means sacrificing other benefits.

As part of the findings of its 2014 Employee Benefits report, the Society for Human Resource Management says that as benefit costs rise, work-flex benefits represent a possible low-cost way for benefits managers’ job offers to stand out from other potential employers.

Some of the more popular flexible working benefits include telecommuting, casual dress days and flex time.

“Flexible working benefits are a cost-effective way to help employees balance their work and personal lives,” SHRM says. “These benefits help organizations attract and retain high-quality talent and are a key factor in employee job satisfaction.

While a variety of options will always be best, health and wellness still take the priority of benefits employers are still offering.

SHRM notes that the majority (95%) offer prescription drug program coverage and dental insurance. Contraception and vision coverage taper off at 84% and 83% respectively.

“Offering health benefits is critical to employee recruitment and retention,” says Bruce Elliott, SHRM’s manager of compensation and benefits. “ However, the rising cost of health benefits, especially health insurance, has made it challenging for some employers to continue offering it. Because of that, employers are evaluating all their benefits and making adjustments.”

Additionally, 79% of organizations provide wellness resources and information to employees and 63% offer wellness programs. Add in those who plan to offer benefits in the next 12 months and the figures go up to 83% and 68% respectively.

According to the report, five-year trends show an increase in the percentage of employers offering mental health care and family planning coverage, vision insurance and coverage for bariatric and laser vision surgery.

“The shifting of health care costs to employees is most likely behind the 12% increase in the number of organizations offering health savings accounts and the 17% increase in the prevalence of employer contributions to HSAs,” SHRM says in the report.      

The group says that the need to maintain key benefits in areas where costs are rising rapidly may mean fewer resources left available to invest in other kinds of benefits that are in less demand.

Preventative health and wellness didn’t fare as high, with only 79% of employers providing wellness resources, and only 62% offering an actual wellness program.

On-site seasonal flu vaccine clinics, CPR/first-aid training and on-site stress reduction programs have seen a continual drop in the past five years. However, lifestyle coaching and preventive treatments that target specific chronic disease have seen an uptick, offered by 47% and 21%, respectively, of employers in 2014.

“The workforce is constantly evolving, and these shifts influence how employees perceive their benefits plans,” SHRM said in the report. “The marketplace is also constantly undergoing change, so benefits programs must be regularly assessed to make sure that employees understand the value of their benefits packages and that the organization is remaining competitive in the marketplace.”

Source: Employee Benefit News