Employers looking to cut costs through benefits packages reforms

Posted on: Tuesday, October 25, 2011

A new study indicates that an overwhelming majority of public sector employers may be looking to cut back on the benefits packages they offer to their workers.

According to the survey conducted by Colonial Life and Accident Insurance Company, 80 percent of human resources managers said their organizations want to reduce expenses on their employee benefits plans, with nearly 60 percent saying it was the company's top priority.

Pat McCullough, vice president for Colonial Life, said many employers are feeling the pinch as a result of the sluggish economy.

"Budgets are tight and organizations are looking to save money," said McCullough. "If they can't save through premiums or services, they'll have to reduce head count and nobody wants to do that."

International Public Management Association for Human Resources president Sam Wilkins said the survey should help public sector organizations prepare for changes they may have to put into place for their workers.

Insurance agents should take note of the survey, as it's an indication of where they should focus their attention in their pursuit of insurance leads who have had employer plans cut.

Posted In: Insurance News, Health Insurance

Enjoy this post? Share it with others.
  • Share on Digg
  • Share on Facebook
  • Bookmark on Google
  • Share on LinkedIn
  • Share on Reddit
  • Share on Twitter