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Mercer poll shows resistance to cutbacks

By Editorial Staff
July 19, 2009
A Mercer survey of more than 2,000 companies in 90 countries suggests that companies are thinking more creatively about how to motivate their charges in a difficult economy – findings that may bode well for voluntary benefits.

While nearly 60% of the firms researched expected to institute further workforce reductions before the end of the year, there were signs of hope on the benefits side. For example, 58% of the respondents indicated they would increase employee contributions to health and group benefit programs in the second half of the year.

In addition, half of those polled said they would instigate cost-sharing with their staff and 41% will offer lower-cost plan options. Another key part of the research is that 94% had not eliminated benefits to control expenses nor planned to do so next year.

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