Budget woes and benefits communication are top concerns for public sector human resource managers, according to insurance benefits provider Colonial Life.
Colonial conducted a survey in September with members of the International Public Management Association for Human Resources. The results were released Friday.
With an overwhelming number of HR managers (80 percent) saying their company is looking at ways to reduce the cost of their employee benefits plan, budget containment is a clear priority.
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To offset these rising benefits costs, HR managers expect to raise premiums, with 64 percent anticipating that will happen within the next year. "Budgets are tight and organizations are looking to save money," said Pat McCullough, Colonial Life's assistant vice president, public sector practice leader. "If they can't save through premiums or services, they'll have to reduce head count and nobody wants to do that."
The ability to retain key employees and create employee satisfaction rated a distant second priority at 20 percent.
"The results from this survey should enable public sector organizations to anticipate and prepare for any changes they may need to implement in their benefits programs to respond to the current economy," added Sam Wilkins, IPMA-HR president.
As HR managers struggle with cost shifts, more than half (54 percent) agree their employees only have some understanding of their benefits to begin with.
"Any time you're introducing changes, especially if it involves cost shifting, a strong communication plan is essential to the success of the entire benefits program," McCullough says. "Public sector employers have a tremendous opportunity to improve benefits communication without raising costs if they partner with a benefits provider that offers communication and enrollment services. It doesn't have to cost them — or the taxpayers — one dime."
Anticipated changes in public sector benefits programs within the next year:
- 64% – Increasing employees' health insurance premiums 64 percent
- 52% – Implementing wellness programs/promoting healthy behaviors
- 45% – Increasing employees' health insurance deductibles and/or co-pays
- 27% - Redesigning health plans to include higher deductibles
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