Controlling benefits-related costs will be critical for mostcompanies over the next five years, according to a new report fromthe Prudential Insurance Company of America. Plan sponsorsneed help from benefits brokers and consultants to maintain acompetitive benefits program while identifying opportunities forgreater efficiency and cost saving.

"Expertise is Essential," a companion report to the"Study of Employee Benefits: 2009 & Beyond" shows that morethan eight in 10 plan sponsors say they use a broker and/orconsultant for assistance with their employee benefits programs. Ofthe 17 percent that don't, 11 percent expect to begin working withan intermediary in the next five years.

"The importance of a sound employee benefits strategy thataligns with a company's broader business strategy and financialgoals has been underscored by recent market developments," saidLori High, president of Prudential's Group Insurance business,in a released statement. "Plan sponsors' need for expert advice andguidance from a broker has never been greater."

Currently, nine in 10 plan sponsors report being satisfiedoverall with the support they receive from theirbroker/consultant.

Over the next half-decade, plan sponsors and brokers/consultantsexpect plan design changes and cost-sharing to be the most commonapproaches to controlling benefits costs. "Nonetheless, furthergains are still expected from wellness and absencemanagement/productivity initiatives, especially among companieswith at least 1,000 employees," the report states.

Only about one in four brokers/consultants (26 percent) saytheir clients have relied on their expertise, service, and supportmore heavily in the past year, but many more expect that trend tocontinue, according to the study. In fact, nearly twice as many (48percent) expect their clients to use their services to a greaterextent over the next five years.

Plan sponsors also anticipate increasing their use ofbrokers/consultants by 2014, but to a lesser extent. Only 17percent expect to rely more heavily on their brokers/consultantsover the next five years while nearly two-thirds expect their usageto remain about the same as it is today.

"Maintaining a close working relationship enables a broker to bein synch with the plan sponsor's priorities and help design abenefits program that address the needs of an increasingly diverseworkforce," High said. "The use of brokers and consultants willlikely increase over the next five years as plan sponsors seek helpmanaging costs and maintain the competitiveness of their benefitspackage."

Employers' Top 5 Cost Management Strategies in 2014 (asperceived by plan sponsors and brokers/consultants):