Communication can ease the pain of rising benefit costs

By Jason Billard
|CHRR, Guide to Pensions & Benefits|Last Updated: 09/04/2003

Employers have experienced significant increases in benefit plan costs in recent years. Some estimates suggest companies must take cost-containment measures now to prevent their benefits expenditures from quadrupling in five years. Despite these gloomy predictions, many employers, fearing a negative employee backlash, are reluctant to consider cost-containment measures any sooner than necessary.

A strategic approach to benefits communications can help a company deal with escalating benefits costs. Many employees do not have a realistic picture of benefit costs and who pays for what. Some employees think insurance carriers foot the bill for their benefits because this is where they send their claims.

Before you have to deal with the possibility of changing your benefit programs to control costs, ask yourself these two questions: