Recently, a story was posted on Employee Benefit News indicating that "some 70% of surveyed HR professionals believe their employees are more appreciative and aware of their benefits package since the recession hit." We too would agree that over the last 18 months, as we've delivered the message of increased healthcare costs, it is still often well-received. The reality is that many employees are realizing the true cost of healthcare and understand the value of having a benefit package altogether.
The economic pressures have also led many employers to take a hard look at employee service options. For example, outsourced solutions have grown in popularity for many large organizations with more than 5,000 employees, up to 40% from 34% in 2009, finds the 3rd Annual Benefit Survey, conducted by Workscape Inc.
If the trend continues, outsourcing for open enrollment will be more common than in-house solutions for this group within the next two to four years, predicts the outsourcing firm.
For those with smaller staff sizes and less capital, outsourcing was less popular. Only 24% of mid-sized organizations (1,000-5,000 employees) use outsourcing, only slightly higher than small organizations (under 1,000 employees) where 22% outsource open enrollment.
Employers’ interest in consumer-driven health plans (CDHPs) and high-deductible health plans (HDHPs) has leveled, the survey says, with about half of small and mid-sized organizations and close to two-thirds of large organizations providing these programs to employees.