US executives overwhelmingly see employee benefits as important for competing effectively, particularly as a means to attract and retain talent, according to the latest McKinsey Quarterly survey.1 Yet many companies don't understand what benefits employees prefer, and few explicitly measure the performance of their benefit offerings.
With health care costs continuing to rise at an annual rate of 7 to 9 percent (after years of double-digit percentage increases), many US companies have been forced to reconsider their role as providers of benefits for current and retired employees. Most respondents place the cost of benefits among the three most important factors affecting their company's finances.
Many of the surveyed executives also view consumer-driven health care programs as a long-term way to create a financially sustainable benefit offering for current employees.
Detailed survey results appear on the following pages.
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