Though costs stemming from employee benefits rose for business owners in 2012, the increase was considerably less than it has been in previous years.
According to the National Survey of Employer-Sponsored Health Plans, which was conducted by Mercer, the total benefit costs averaged slightly more than $10,500 for each employee this past year. That's a jump of 4.1 percent when contrasted with the previous year. However, the rate of increase slowed, as it had risen 6.1 percent at this in 2011 compared to 2010.
Julio Portalatin, president and CEO of Mercer, said these cost savings largely derived from employers who adjusted their plans to account for the Patient Protection and Affordable Care Act, which is expected to go into full effect in 2014.
"Employers are very aware that in 2014, when the health reform law’s provisions kick in, they will be asked to cover more employees and face added cost pressure," said Portalatin. "They’ve taken bold steps to soften the impact and it’s paying off already."
Because the PPACA allows those who don't receive coverage from their employer to enroll with the states' insurance exchange programs, some business owners have decided to stop offering health benefits. However, studies have shown that this may be inadvisable, as health benefits often serve as a motivator for employees to work harder or stay with one particular employer.
Behavioral assessments may serve as another way to retain employees. According to a recent report from the Human Capital Institute, these analyses – which were once confined solely to large corporations – have helped business owners determine what motivations inspire workers to want to contribute to their company's bottom line.
