Benefits October 19, 2009

Employee Benefits Top Cost Concerns for CFOs

October 19, 2009 (PLANSPONSOR.com) - More than three-quarters (77%) of U.S. chief financial officers and senior comptrollers surveyed said that among pricing pressures, they are most concerned about the price of employee benefits.
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Thirty-one percent indicated they are most concerned about insurance, 30% about raw material costs, and another 30% about rising energy costs, according to a Grant Thornton LLP press release. The majority said their company is reducing bonuses (55%) and a quarter (26%) said their company is reducing its 401(k) match.

Forty-two percent of respondents indicated their firm is reducing salary increases, while one-third reported their firm is reducing its health care benefits costs. The survey found other benefits costs being reduced are life insurance (11%) and disability benefits (10%).

The press release said less than a quarter (24%) of respondents said they are more worried than this time last year about their organization’s ability to continue. Nearly half (45%) indicated the same concern as last year about their firm’s ability to continue.

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