One of the primary reasons applicants shop prospective employers is to find a company that offers the job they want and the benefits they need. A comprehensive benefits package is important for job seekers as well as employers. In the five years between 2003 and 2008, survey data from accounting placement giant Robert Half International indicated that benefits were an effective recruiting tool. Employers who recognized that benefits were effective in appealing to qualified candidates jumped from a minuscule 2 percent to 33 percent.
Rising Health Insurance Costs and Employee Sacrifices
In 2011, a former job seeker featured in Capitol Hill Blue article titled "Health Care Benefits Drive Job Searches" indicated she would have taken a 25 percent cut in pay just to get health care coverage from a prospective employer. More and more, job seekers and employees are placing increasing value on employer-subsidized health care insurance. That being said, health insurance costs are cause for employees to reconsider their employment options and the ability to keep current on the employee portion of health care premiums. Employees and job seekers are willing to make a number of sacrifices just for the ability to maintain health insurance through their employers.
Increased Employee Contributions
Rising group health plan costs put employers and employees in a quagmire. Employers want to give their employees a comprehensive benefits package, but many just don't have the resources they need to maintain employer contributions with increases in monthly premiums. Reluctantly, some employers pass on increases to employees, requiring them to pick up a greater percentage of the monthly premium tab. Consequently, when employers receive notice of health care costs increasing, they face having a difficult conversation with their employees. And, when employees encounter rising costs, they have some serious decisions to make. They can look for employment with an organization that contributes a higher amount toward the monthly premium or they can weigh the option of cancelling insurance altogether.
Eliminating Extras
Many employer-sponsored health plans include additional insurance offerings such as vision or dental care. Although the cost for vision or dental care is usually minimal, the slightest increase in medical care premiums may affect an employee's ability to maintain vision and dental coverage. Employees who make the decision to drop vision and dental care should budget out-of-pocket expenses in the event they encounter expenses for services which were once insured. When these previously covered services become too expensive, employees have to do without the services or wait until open enrollment when they can re-activate vision and dental care. This places a strain on employees struggling to make ends meet.
Employee Dissatisfaction
The majority of employees believe employers make plenty of money -- enough to sustain their employer contributions for medical insurance. Questions about the company's ability to afford coverage are understandable given public scrutiny concerning executive compensation, bonuses and golden parachutes for highly-compensated employees and employee wages that aren't the most competitive. These concerns factor prominently in employee opinion about why employers haggle over the percentage of health care premiums they'll absorb. When a company makes decisions that convey the message that the health and well-being of its workforce is a lower priority than executive compensation and perks, employee satisfaction tumbles.
Employee Health Suffers and Employer Productivity Suffers
The most devastating impact of rising health insurance costs is the toll on employee health and the health of employee dependents, particularly when the rising costs interrupt access to health care. When this occurs, employees and employers alike suffer the consequences. Employee health and well-being takes a turn for the worse when employees can no longer afford health insurance. Employers feel the impact when employee health affects performance, productivity and wellness.
Tags: health care, vision dental, dental care, health insurance, vision dental care, care premiums
