Managing While the majority of employers believe they are doing everything they can to manage costs, in reality, they could be more proactive in Costs: leveraging proven solutions. HR leaders are increasingly under pressure to achieve the seemingly Missed impossible task of reining in rising health care costs while minimizing disruption to employees. Opportunities Employers are shifting from a reactionary, tactical approach, to implementing longer-term strategic solutions. Plan changes and other cost-cutting tactics are being evaluated in the context of a multi-year planning process, which a resounding majority – 86 percent – have put in place. Are their efforts paying off? Sixty-five percent agree that they are doing all they can to contain rising benefits costs; 70 percent note that their strategies are successfully reining in costs. (See Figure 2) In fact, a significant percentage of the HR respondents indicated they have revamped their plan designs to reduce costs. Leading that change, 51 percent have implemented voluntary benefits for the first time as part of their cost savings strategy. However, adoption of other proven approaches to manage benefit costs is lagging in both small to mid- sized companies. (See Figure 3) Figure 2. Adequacy of Benefit Strategies and Programs How much do you agree or disagree with each of the following statements? (5=Agree strongly, 4= Agree, 3=Neither, 2= Disagree, 1=Strongly Disagree) AGREE AVERAGE RESPONSE OUR HR TECHNOLOGY PLATFORM IS WELL-INTEGRATED 80% 4 ACROSS BENEFITS ADMINISTRATION AND PAYROLL WE ARE PURSUING A DEFINED MEDICAL CONTRIBUTION 79% 4 STRATEGY TO CONTAIN BENEFITS COSTS OUR HR TECHNOLOGY PLATFORM (OR 73% 3.9 SOFTWARE) MEETS OUR CURRENT NEEDS OUR PLAN DESIGN COST MANAGEMENT 70% 3.9 STRATEGIES ARE REINING IN BENEFIT COSTS OUR WELLNESS/HEALTH MANAGEMENT 66% 3.8 STRATEGIES ARE DELIVERING AN ROI WE HAVE DONE ALL THAT WE CAN REASONABLY 65% 3.8 DO TO CONTROL RISING MEDICAL COSTS Research Report | Employee Benefits Barometer: SMB Perspectives and Priorities in an Era of Disruption 5