Apr 14, 2023
According to recent research conclusions in the Principal Financial Well-Being Index for 2022, 70% of employers and 74% of employees predict that a recession is coming, likely in the second half of 2023.
As a result, employers will likely try to reduce discretionary spending and build cash reserves as a way to “batten down the hatches” during the economic downturn.
However, despite this potentially bad news, 52% of employers stated that they would not reduce benefits offered, including ancillary benefits. Furthermore, 49% of employers stated that they would not reduce employer-paid portion of benefits offered. Finally, 58% of employers also stated that they would not reduce salaries.
It’s also important to note that, according to the report, small companies were less likely to make any of these reductions. For instance, 57% of small employers versus 45% of large employers stated that they would not reduce benefits offered. Additionally, 55% of small employers versus 41% of large employers stated that they would not reduce employer-paid portion of benefits offered.
While this may come as a surprise to some, it’s actually a sound strategy for the retention of the most skilled and talented workers. Employers understand that, in the current labor landscape, they have to offer competitive benefits packages to attract and retain the types of workers that will most benefit their companies and make them profitable.
In other words, it makes more sense to invest in employees and their health via competitive benefits offerings rather than slashing these benefits and losing the workers, including the best and the brightest. In essence, it’s a long-term strategy that pays greater dividends over time versus a short-term strategy that saves costs right away but eventually does more harm than good.
Contact your Amwins Connect Sales Representative to learn more. Our reps can partner with you and develop unique benefit strategies to meet your specific needs and expectations.
Article Location
