How might the increasing cost of benefits impact the overall structure of an organization? What might the alternatives be for managing this impact? Are the recommended alternatives recession proof?
First off, the real question is, who is responsible for paying for the increase in cost for the benefits? If it the employer, then the organization may want to look for ways to decrease other expenses and increase revenue. One way to do that would be to decrease non-revenue staff, freeze over all agency increases and reduce other benefits. On the other hand, if the employee is the one taking on the increase in the cost of the benefits, it may make recruiting difficult for the employer, as the organization may be viewed as less desirable to work for.
Since this ‘recession’ the past few years, there has been a larger applicant pool willing to take less money for the same position that would have paid more several years ago. I have seen this first hand from employer who advertise for entry level positions and received over 150 resumes. Some of which are from applicants who hold masters or doctorate degrees and are completely over qualified. This just goes to show that people will do just about anything in this economy just to find a job and establish job security. It honestly is disheartening. Another recommendation for employers, is to establish job sharing, where two employees work part time and split job responsibilities for one particular job but neither employee is eligible for benefits. This allows all job duties for a particular position to be fulfilled and is less expensive for the employer.
What are your thoughts, comments and/or opinions on other alternatives – whether it be from an employer’s perspective or an employees?
Sooner than later,
The Tiny Professional