Employee Benefits Market Check Survey: Strategies to Manage Benefit Costs

At the beginning of the year, we asked companies about their top employee benefit priority in 2024. “Managing costs to meet budget” was the top priority, with 38% of employers indicating this was their leading concern. This is consistent with the responses we received when asking employers the same question in years past.

There are several tactics that employers can take to assist with managing costs. We conducted a poll during a webcast on February 22 to learn which strategies plan sponsors were utilizing the most. The results are in the chart that follows.

*Results based on 209 employer respondents

Key Findings
For various reasons, employee benefit costs continue to increase, which can challenge employers in trying to keep expenses within their budget. The traditional levers of increasing employee payroll contributions or reducing benefit coverages are always a route for plan sponsors, but there are numerous other options for companies to explore.

Employers should adopt a strategic approach to managing employee benefits costs, considering short-term savings and long-term sustainability. A proactive and adaptive approach to benefit management mitigates financial strain and fosters a healthier and more engaged workforce. Working closely with your benefits consultant and frequently comparing costs to the budget will help dictate if revisions need to be considered.

Should you have any questions regarding any of this information or want to review your cost mitigation strategies or industry-level data, please contact your local Assurex Global adviser.