Businesses Continue to Cut Back on Benefits for Employees

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For Americans who have managed to hold on to their jobs during these rocky times, there could be a few more bumps in the road. A new survey revealed some disturbing trends with employer sponsored benefits and even more serious changes on the horizon.

The company, Harris Interactive, polled 2,210 adults with survey questions from the National Endowment for Financial Education, or NEFE. From those who participated, more than half were employed.

The survey revealed that over the past 5 years, 40% of working adults had their employer-sponsored benefits either reduced or completely eliminated. Employees have been forced to pay more for health insurance with higher co-pays, premiums, and deductibles. In fact, in regard to health insurance, 72% noted that this employee benefit was the hardest hit.

In addition to the Harris poll, the health care consulting firm, the Corporate Executive Board or CEB, predicts that by 2017, more than 50% of the nation’s Fortune 1000 firms will be forced to completely drop employee health care benefits. Of those with plans to severely reduce benefits, 63% affirmed they would make up for it by offering employees cash to offset out-of-pocket expenses.
CEB’s managing director, Brian Kropp, noted, “The vast majority of organizations are better off taking those resources and offering employees something else, like more money or paid time off. You get a much bigger bang for your buck.”

However, NEFE’s survey uncovered a sharp contrast in what companies have proposed and what is actually taking place. Among workers, 41% have had their pay raises suspended and 23% report bonuses for top performance have come to a stop.

Resource: http://money.cnn.com/2012/05/31/pf/employee-benefits/index.htm?iid=Popular

Anna Platz is an Editor at ForTheBestRate.com, a leading mortgage rate research website, as well as the Lead Contributor to GoodCentsSavings.com, a blog about budgeting and personal finance. Anna is immersed in the world of real estate, mortgage, and home financing and is here to provide valuable resources for homeowners and soon-to-be-homeowners on buying and selling real estate, researching a mortgage broker or lender, and securing a home loan. Check back often for news, updates, and remember that you can find today's current mortgage rates at ForTheBestRate.com. My Google Profile+

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