While they fell off the national radar in the late 1990s and
during the early part of the new millennium, rising healthcare
costs once again are front-page news.
Aside from putting a constant strain on the bottom line,
companies that cannot hold their healthcare budgets down as a share
of total compensation face higher turnover rates for top
executives, according to a survey released last week by the
human-resources giant Watson Wyatt Worldwide (Washington,
D.C.). Perhaps now more than ever, being able to communicate your
company's health-benefits package effectively is key in retaining
the major players and keeping your employee base intact.
Watson queried 24 large employers, but it did not provide an
industry breakdown. In part, the survey found turnover rates for
top-performing employees are lower at firms whose workers
understand the value of their total compensation than at
organizations whose workers do not.
However, a poorly communicated "rich" (better-than-average)
health plan is not at effective at reducing turnover rates as is a
less-generous plan that is well- communicated.