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Benefits April 16, 2010
Employee Benefits Still Top Cost Concern for CFOs
April 16, 2010 (PLANSPONSOR.com) – A national survey of U.S. CFOs and senior comptrollers conducted by Grant Thornton LLP found their number one cost concern (still) is the cost of employee benefits.
Reported by Rebecca Moore
In terms of pricing pressure, 68% are most concerned about the price of employee benefits. Six months ago, 77% of CFOs surveyed cited this as their number one concern (see Employee Benefits Top Cost Concerns for CFOs).
Twenty-one percent of respondents reported they are reducing their 401(k) match; however, three-quarters (74%) said they are keeping their match the same, and 5% are increasing their match contributions. Twenty-nine percent reported they are reducing average cost per employee for health care benefits, while two-thirds said it is staying the same, and 6% are increasing it.
More than half of CFOs (53%) said they plan no salary changes in the next six months, while 32% plan to decrease and 15% plan to increase. There is little chance for an increase in bonuses, as 47% plan no change, 44% plan to reduce, and only 8% plan to increase, the announcement said.
The survey found only 12% of CFOs reported they are more worried about their organization’s ability to continue as a going concern compared to this time last year.