Ways to Reduce Cost of Benifits
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Abstract
To motivate employees, providing benefits is a cheaper way than giving direct financial benefits. But as companies are continuing different benefits, it seems benefits are carrying a higher cost than cash pay for employees. Employee benefit plans providing life, disability, and medical-dental coverage represent a substantial cost to law firms as well as to other employers fringe benefits can represent the huge cost of payroll (Obetz, 1983). The Conference Board of Canada shows that the average cost of providing benefits for employees is $8,330 per full-time equivalent (conferenceboard.ca, 2015) . Among the benefits, healthcare benefits consist of substantial cost, are expected to outpace general economic inflation with a 4.5 percent growth rate in 2016 ( (PwC Health Research Institute, 2016). As a result, there is a need for considering employee benefit cost. But it has to be such a manner that could help to retain not only completive advantage but also maintain the relationship between employer as well as employees .Because, it would effect on cutting someone’s livelihood, reducing or eliminating healthcare coverage, retirement contributions or other vital benefits (Rossheim, 2016).
Keywords
Cost of benefit, How to reduce cost
References
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