Benefits Planning, Staff Evaluation, HR Budgets Changing As Year Moves Forward

Benefits consultants report companies are focusing on reducing  costs through efforts to shift more responsibility to employees.  One way is to reduce healthcare benefits costs. For the first time, Consumer Directed Healthcare options are now in force for a majority of all workers with employer provided plans.  On the whole these plans cost less and have lower utilization rates than older offerings such as PPOs. HMOs are losing ground as a benefit option.

Employer contributions to 401ks plans are also on the decline as are other contributory programs, according to recent surveys. However, many firms reported they expected to return to normal pay practices in 2010.

An unusually high number of HR professionals reported in this year's survey by this publication's parent that they are creating restaffing plans focusing on morphing their workforce.  A recent study indicated companies see a need to change the skills of employers to reflect the changing business environment. To achieve these goals, HR budgets are being increased.

Customer service was also highlighted as a growing concern by respondents. But alll forms of talent measurements are being reviewed.

A recent focus group conducted by Information Strategies, Inc. of CEOs and COO representing more than 5 million workers suggest the HR department will be critical to the reshaping of staffs to better reflect the changing business environment.

The other major finding of the focus group was the need for better quality control in the delivery of products and services.  Again, the senior executives said they were looking at the HR function to take a lead role in this area.

Employers are turning to HSAs as a way of reducing benefit costs.  More than two million Americans switched to these retirement programs in the 12 months ending January 2010 with employer contributions on the rise.