Nearly 70% of companies with up to 99 employees and annual revenues of at least $100,000 that reported reduced revenues are finding it more difficult to offer strong benefits packages, while 62% say it’s more of a challenge now than a year ago and that they’re seeking creative ways to reduce their insurance costs.
The survey also shows that 43% of the respondents were more likely to cut back on employee benefits, with 65% considering more aggressive steps to slash insurance costs. With this in mind, 43% of the small businesses are now more interested in voluntary and supplemental insurance benefits than a year ago.
An accompanying survey of 1,243 adults found that 52% of employees are more concerned about affording out-of-pocket medical expenses than they were a year ago and 56% were more concerned about becoming ill or injured than they were a year ago. The latter percentage rose to 60% for employees with young children.
“Employers are concerned about losing employees to competitors with better benefits packages, even while they may be struggling to reduce costs and make ends meet,” according to Paul S. Amos II, Aflac president and chief operating officer. “It’s a cost-benefit balancing act.”
He said supplemental insurance can strengthen the overall benefits package and provide a valuable service to sick or injured employees who cannot work in terms of helping pay for expenses that aren’t covered by their group medical insurance plan.
