Although most of the employers surveyed said they plan to offer the same health care benefits in 2021 as they had this year, the full impact of the pandemic is not yet known.
The economic downturn that accompanied the COVID-19 pandemic is causing companies to take a new look at their benefit packages, a new study from Gallagher's concludes. The "seller's market" of employee benefits—which led U.S. employers to compete for talent by offering generous benefit packages, is changing rapidly, the report suggest, as companies balance the demand for benefits with new budgetary realities.
The Gallagher's 2020 Benefits Strategy and Benchmarking Survey Report gathered data from 3,921 employers from December 2019 to May 2020, and also used data from "pulse" surveys in April and July 2020. The researchers found that companies are responding to economic stress with a range of strategies. The first reaction was to cut payroll, the data suggests, but the survey found companies are also re-examining their approach to benefits.
Continue Reading for Free
Register and gain access to:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
