2011 Top Five Total Rewards Priorities
Rising health care costs continue to weigh on employers as Health Reform adds a heightened level of uncertainity
Top Five Total Rewards Priorities for 2011
- The cost of providing healthcare benefits to active employees
- The willingness of employees to pay for an increasing portion of benefit plan coverage and to manage their own reward budget
- The ability of reward programs to attract, motivate and retain talented employees
- The ability to adjust to and comply with current and future provisions of Health Reform legislation
- Clear alignment of Total Rewards strategy with business strategy and brand
- Two-thirds of surveyed employers are making no changes to their benefit plans at this point, signaling a “wait and see” approach for final Health Reform provisions that will likely reduce plan design flexibility, indicating the willingness of employees to take on greater health benefit cost sharing as one of the top strategic challenges facing organizations today.
- Eighty-five percent of respondents expect Health Reform will lead to an increase in benefits costs per employee.
- Sixty-three percent of respondents indicated they will focus mostly on controlling total healthcare costs, while 73 percent indicated that they expect to re-evaluate benefits due to Health Reform over the next 12 months.
- With regard to Health and Welfare plans, 62 percent of organizations indicated that they have considered increasing cost-sharing for active employee plans over the past 12 months, while another 30 percent of organizations indicate they will consider increasing employee cost sharing for active employee plans over the next 12 months.
- From a personal perspective, 75 percent of respondents ranked their ability to afford retirement, including post-retirement healthcare, in their top three personal challenges.
- Down nine points from 2010, 60 percent of employees ranked job security as a top three personal challenge.
- Nearly half (48 percent) of respondents indicate they plan to increase their level of contribution to qualified retirement plans, while those planning to delay retirement also dropped to 34 percent in 2011 from 41 percent in 2010.
|About the Survey|
|In its 17th year, the 2011 Top Five Total Rewards Priorities survey has been conducted annually since 1994. The survey is jointly sponsored by Deloitte and the International Society of Certified Employee Benefit Specialists (ISCEBS). For purposes of this survey, the phrase “Total Rewards” is defined as all compensation, benefits, perquisites and any other direct or indirect payments to employees. Conducted in January 2011, the survey was completed by 242 participants online. The survey respondents represent a diverse cross-section of the U.S.-based employer population by industry and size.|