Despite Escalating Costs, Workscape/HCI Survey Results Indicate Employee Healthcare Benefits Aren't on the Chopping Block

MARLBOROUGH, MA--(Marketwire - May 12, 2009) - A recent study conducted by Workscape, Inc., a leading provider of outsourced benefits and talent management solutions, and the Human Capital Institute (HCI), a professional association and think-tank advancing the science of strategic talent management, revealed that even in the midst of this economic crisis, the vast majority of employers are not reducing healthcare benefits or forcing workers to shoulder more of the costs.

The survey, aimed at understanding how the recession is affecting human resource-related practices among North American companies, showed that despite extreme economic pressure, most (59 percent) of the 308 respondents indicated that they are not shifting a greater percentage of health care expenses to their employees and only 20 percent indicated that they are reducing or reconstituting benefits offerings.

The survey did indicate, however, that employers are addressing economic pressures through other means. Nearly half -- some 48 percent -- of respondents indicated that there are no planned merit increases and 37 percent are reducing or ceasing bonus distributions this year.

"The fact that most companies are not decreasing their commitment to employer-sponsored health benefits, even though they are often the costliest of benefits, underscores the critical role of such plans in the overall compensation mix," commented Tim Clifford, President and CEO of Workscape. "Most organizations realize that in order to survive the recession and be poised for growth when the economy rebounds, employees must remain healthy and have peace of mind knowing that their families are protected."

There are, however, some measures being taken by companies to mitigate increasing healthcare costs. Forty-four percent (44%) of respondents indicated that they offer at least one high-deductible healthcare plan or consumer-driven healthcare plan (CDHP) to their employees. CDHPs are healthcare plans that typically require a lower regular premium payment but higher deductibles. These plans can provide some savings for employee and employer alike, but they are not ideal for all workers so employees must make the determination as to what type of plan -- a CDHP or a more traditional plan -- is best suited for their own personal and financial needs.

"Given the diversity of plans and plan types now available, employers are increasingly looking for ways to empower their workforce to make the right decision during enrollment," continued Clifford. "To that end, Workscape offers a broad selection of technologies and services -- from online decision support tools to complete employee communication services to phone-based support that's available 24x7 -- aimed at helping employees to become well-informed healthcare consumers."

Workscape's Outsourced Benefits Administration (OBA) services are designed to help HR managers and employees make the most of their benefits options. Workscape also offers a complete selection of analysis tools designed to help HR managers understand enrollment patterns and behaviors. As a result, Workscape can help companies to increase plan participation, reduce workload and ultimately reduce costs.

More information about Workscape's business-critical HR solutions is available at www.workscape.com.

About Workscape

Workscape is a leading provider of business-critical HR solutions that enable hundreds of organizations to manage their two largest workforce expenditures: employee benefits and performance-driven compensation. Workscape's offerings share a common technology platform, can be readily integrated with existing IT investments, serve millions of employees and are scalable and configurable to meet the distinct requirements of organizations ranging from 2,000 to over 500,000 employees. One client uses the company's award-winning multi-lingual compensation solution to compensate hundreds of thousands of employees across 70 countries. Workscape's outsourced benefits administration offerings are backed by U.S.-based 24/7 support for managers and employees on policies and processes. For more information about Workscape, visit www.workscape.com or call 888-605-9620.