KANSAS CITY, Mo.--(BUSINESS WIRE)--Apr 11, 2024--
Lockton Companies, the world’s largest privately held independent insurance brokerage and consulting firm, today released the results of its annual National Benefits Survey, focused on 2025 employee benefits programs.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240411761270/en/
Survey confirms the need to reduce costs is increasing in importance for employers when it comes to making benefits decisions. (Source: Lockton)
Drawing on the responses of more than 1,600 employers nationwide, this year’s survey confirmed the need to reduce costs is increasing in importance for employers when it comes to making benefits decisions. In previous years, attracting and retaining talent was the most important factor survey respondents cited by a more than 2-to-1 margin. In this year’s survey, however, reducing cost was now virtually on par with recruitment in terms of employer priority.
“The past few post-pandemic years can best be described as a war for talent with benefits being one of the primary tools for employers to differentiate themselves,” said Lockton People Solutions National Executive Committee Chair Tom Schaffler. “This year’s survey results indicate the re-emergence of a wave toward cost control and containment as economic factors mount and the price of healthcare continues to escalate, significantly outpacing inflation. Employers need to be clear on how they can move forward as they try to balance these two competing priorities.”
Lockton predicts that the cost of healthcare will rise again next year at an average rate of 6 to 8%. The impact of this increase can vary widely based on a client’s circumstances. Given the emphasis placed on managing costs, some employers are already taking action to optimize their plans. The strategies they are using, however, are often foundational; they cause little disruption to employees and do not save significant cost. Broadly, plan sponsors are not yet deploying more progressive and disruptive strategies that would result in more significant cost savings.
"Plan sponsors really need to have a clear perspective on how willing they are to disrupt their employees. When sponsors understand their benefits philosophy, they can better evaluate the strategies to manage cost that are right for their organization. They are also then more prepared to communicate these changes to their people," said Lockton People Solutions National Practice Leader Shannon Demaree.
“Our clients have come to depend on Lockton’s annual benefit survey information as they benchmark themselves and their plans across their industry and the broader economy,” added Schaffler. “Lockton’s objectivity as the nation’s leading independent broker and consultant gives us the flexibility to work with our clients to interpret and analyze their data and develop tailored solutions that are ideally suited for their organization and people.”
In addition to efforts to optimize plans, the survey also indicates employers are looking for ways to enhance access to quality healthcare, which can improve health outcomes and also reduce cost. Finally, this year’s survey also reflects plan sponsors’ continued interest in providing personalized benefits that support members’ whole selves. Employers are prioritizing benefits that promote family building and caregiving, gender affirming care, and both mental and financial well-being.
This year’s survey included responses from employers across a variety of industries, sizes, geographies and ownership structures. The number of survey participants reflects an increase of more than 20 percent over last year.
For more information on the Lockton National Benefits Survey and the steps American companies are taking to operate in an increasingly competitive and cost-conscious environment, please visit the executive summary here.
About Lockton
What makes Lockton stand apart is also what makes us better: independence. Lockton's private ownership empowers its 10,750+ Associates doing business in over 140 countries to focus solely on clients' risk, insurance and people needs. With expertise that reaches around the globe, Lockton delivers the deep understanding needed to accomplish remarkable results. For more information, visit www.lockton.com.
