A new study finds that the cost of employer-provided benefits increased 24% from 2001 to 2015.
The analysis conducted by WillisTowersWatson revealed not only an overall increase in the cost of employee benefits, but also a shift in how employer dollars are allocated - less for retirement benefits and more for health insurance.
The fact that the cost of employee benefits has increased to the extent that it has will not come as a surprise to employers. Employees, however, are a different story. For most employees the main concern of the past fifteen years or so is not the increase in their employers’ cost of benefits but rather the lack of wage growth experienced by many workers. Simply put, most employees are unaware of the value of their total compensation package.
While many employers strive to communicate a total rewards message to employees by providing them with total compensation statements, too many employers fail to make communicating this key information a priority. By failing to communicate, employers miss an opportunity to maximize the return on the significant investment being made in compensation and benefits.
Does your organization provide a total rewards statement to employees? Let us know in the comments. And, of course, feel free to reach out to discuss how we help you tell your organization’s total rewards story.