Employee benefits are putting the squeeze on companies looking to mitigate rising costs. A majority (84 percent) of chief financial officers surveyed in October by Grant Thornton LLP cited benefits as their greatest pricing pressure, up from 68 percent six months ago.
Roughly one-third of respondents say they will reduce health care benefits, 23 percent will reduce bonuses, and 18 percent will be reducing stock options/equity based compensation.
Grant Thornton LLP surveyed more than 500 U.S. CFOs and senior comptrollers participating.
|About which type(s) of pricing pressure are you most concerned? (may select more than one)|
|(%) October 2010||(%) March 2010|
Employee benefits (e.g., health care, pensions)
|Raw materials (e.g., food, metals)||27||29|
|Company Insurance (not including healthcare)||11||19|
|Is your company making any changes to the average costs per employee in any of these employee benefit and compensation areas?|
|Salary raises||(%) October 2010||(%)March 2010|
|Stock options/equity based|
|Health care benefits|
|Life insurance benefits|