Healthcare Costs Are Not Deterring Hiring While the debate rages in Washington and elsewhere over the issue of healthcare and its effect on hiring, small business owners themselves indicated it was a major concern but not preventing them from hiring.
Results of the most recent survey by sister publication, Small Business Digest, indicated that more than half of all firms surveyed were considering changes in their healthcare programs. At the same time, almost half said they were also planning to hire new employees this year.
More than 1,100 small businesses answered a survey designed to update results from last Fall’s massive sounding in which 5,300 senior managers said provided their views on healthcare and hiring.
Fully a third of all respondents were unsettled or did not want to disclose their hiring plans.
Small Business Digest is a division of Information Strategies, Inc., a Ft. Lee, NJ, based company that specializes in the providing advice and consul to more than 500,000 small firms each month.
Still Hiring But Concerned
ISI’s President, JoAnn Laing, said the results of the latest update clearly indicated that smaller firms were hiring but that they still were extremely concerned about healthcare costs.
“Our readers tell us that they are getting hit with double-digit percentage increases,” she said. “Many are developing either a two-tier healthcare program or shifting more of the costs to employees.”
“Based on their answers, we can safely say that more than a third of all respondents were increasing staff but reducing healthcare contributions,” Laing added.
“In addition, we are seeing many companies shifting a significant portion of the healthcare burden to their staff,” she continued. “More than 10% said they were withdrawing benefits all-together and providing only a one-time salary increase or bonus in its place.”
Almost every respondent said they had carefully reviewed their healthcare offerings during the past year and continued to juggle alternatives up to the last moment before resigning with their current provider. Many respondents also said they were concerned up switching insurance providers due to the dislocation caused by changing more than once every three years.
The survey also indicated that despite much wrangling in Washington and elsewhere, respondents were keeping abreast of new offerings enacted late in 2003.
Because of the demand for data on Health Savings Accounts enacted late last year, Laing said her company was preparing a book on Health Savings Accounts due out in June. |
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