Recruiting and retaining top talent is a key goal for all HR departments, and having a competitive benefits package is a must. Sometimes knowing which benefit options to offer and which to phase out can be a challenge. In many situations, employers will need to know things like cost-saving strategies and which consumer-directed benefits will make benefits packages most appealing and competitive.
CDHPs rose 30% in 2014, 23% in 2017, and to 40% in 2018. That’s not surprising, given how difficult it can be for organizations to balance controlling costs and raising employee satisfaction. For the latter, more employee education is required to transition smoothly to a less familiar plan type like a CDHP.
While CDHPs have grown overall, somewhat surprising is the prevalence of full replacement of CDHPs, which actually decreased, down to 3% in 2018 from 4% in 2017. Overall, organizations offering CDHPs exclusively has remained relatively flat since 2015.
The growing prevalence of CDHPs indicates that organizations are crunching the numbers and realizing exactly how much they can save with CDHPs while still giving employees access to competitive benefits.
Employee Communication Greatest CDHP Challenge
Ninety percent of employers responding to a new study conducted jointly by Watson Wyatt and Rand Corporation cited employee communication as their greatest challenge in introducing CDHPs and during the first year of CDHP implementation.
The success of CDHPs hinge on many factors, one of which is whether employers and carriers provide employees with decision support tools that will empower them as engaged consumers.
Do your organization offer a CDHP? Is it time to improve the CDHP you have or create a new one?
With employee benefits making up approximately one-third of total compensation cost, organizations must take an active role in strategic benefits planning.
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