Economic factors are turning 2024 into a potentially rough year financially for employees. Healthcare costs are expected to rise and employers are planning to scale back on raises and promotions, with many not even planning on a cost-of-living increase.
This double whammy will effectively reduce employee net compensation and disposable income. Despite the downside for retention, many employers seem willing to take this risk. Key findings of a recent survey of 600 business leaders revealed:
- 26% of companies will not or may not give raises next year
- Half of companies giving raises say less than half of employees will receive one
- 52% of business leaders anticipate layoffs in 2024
Employers need to do everything possible to ensure their compensation and benefits packages remain competitive. Offering a member-first health plan from Vitori Health is a smart strategy for achieving cost control and employee retention goals.
- Vitori’s less costly, more compassionate health plan delivers better benefits to more satisfied members with 80+ Net Promoter scores and 30% lower health plan costs. Savvy employers can reinvest their savings in cost of living increases, helping employees save for retirement, and other benefit enhancements.
- Vitori Vantage, the industry’s first 3-year level premium health plan, eliminates the unpredictability of rising annual healthcare expenses. Vantage stabilizes cash flow and helps employers budget for strategic workforce investments.
Employers tethered to legacy insurance carriers with uncontrolled healthcare costs are giving up competitive advantage with fewer options for improving employee pay and benefits. It’s time to take a modern approach to employer sponsored healthcare that boosts employee satisfaction while successfully reducing plan costs.
