In a survey by the Society for Human Resource Management (SHRM) of a random sample of 375 of its members, it was found that it is quite a commonly held belief that organizations will have to cut some services in order to make up for rising health-care costs. More specifically, aggregate numbers showed that:
- 29% reported a likely decrease in other employee benefits
- 28% reported a likely decrease in hiring new staff
- 22% reported a likely decrease in salaries/raises
- 19% reported a likely decrease in training
- 12% reported a likely decrease in technology investments.
The survey, which asked respondents the likelihood of adjustments in business practices, also reported a likely increase in the expectations of employee production (44%), in costs of consumer services and products (29%), in outsourcing (19%), and in downsizing and layoffs (15%).
class=”normal1″> “For years, health-care costs have increased three to five times faster than the rate of inflation, and employers absorbed most of that cost,” said Susan Meisinger, President and CEO of SHRM, in a press release. “Employers want to provide health-care coverage to employees, however, increasing health-care costs are cutting into all areas of business, and that severely affects an organization’s overall success and competitiveness.”