STUDY OF EMPLOYEE BENEFITS: 2006 & BEYOND - Prudential

Benefits Matter
Eight in Ten Plan Sponsors
Remain Committed to Offering
Competitive Benefits Programs
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Over the next five years, even though employers expect to face higher
medical insurance costs and increased pressure on expenses, most feel
it is important to offer a competitive benefits package AND subsidize
as much of the cost as possible in order to attract and retain employees.
In fact, many plan sponsors want to do more to help their employees
better understand and manage their benefits to improve their financial
security. For other companies, however, the downward pressure on
benefits-related costs is forcing them to make difficult choices and
many are looking at creative ways to offer valued financial and
lifestyle benefits while asking employees to accept a greater share
of the financial responsibility.
As benefits costs continue to increase as a percentage of payroll, the
benefits decision-making process is becoming more complex with a
widening pool of internal and external influencers.
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