Relief from rising benefit costs ‘short-lived’

Retiree benefits, cost-containment, reducing absenteeism key priorities for employers: Report
By Amanda Silliker
|Canadian HR Reporter|Last Updated: 12/18/2012

Canadian organizations had a modest reprieve from an increase in benefit costs in the past three years, but the relief will be short-lived, according to a Conference Board of Canada report.

The average increase in benefit costs in 2010-11 was 6.2 per cent, down from 9.7 per cent in 2008-09, found Benefits Benchmarking 2012.

“It’s been tempered a little bit not because employers are doing a better job at containing costs and changing the design of their benefit plans, but really because of some external changes in the market,” said Karla Thorpe, director of leadership and human resources research at the Conference Board in Ottawa.