News You Can Use: 10 benefits on the chopping block

According to U.S. News, employers are making a list and checking it twice -- and not in a good way. This recent article outlines 10 places employers will look to cut costs next year, among them 401(k) matches, employee training and merit increases. Which ones are on your list? Comment and let us know.

Overheard At: Spread low-cost cheer

Instead of focusing on the economic crisis, fearless EBN leader Kelley Butler takes her letter from the editor in a positive direction. In this month's podcast, Butler talks about low-cost ways to improve employee morale and spread cheer this holiday season.

News You Can Use: Average deductible tops $1,000

New survey results from Mercer reveal that for the first time this year, employees' average annual deductible for single coverage topped $1,000 -- a troubling sign for employers and workers alike who are struggling to pay for health care.

The average single person must now pay $1,001 in out of pocket expenses before coverage kicks in, a 17% increase from last year's average $859.

"Raising the deductible has become the fallback for employers faced with cost increases they can't handle," Mercer consultant Laura Baker told the LA Times. "It's the easiest way to reduce cost without taking more out of every employee's paycheck."

Michelle Dimarob, legislative affairs manager for the National Federal of Independent Businesses, added: "This is very reflective of the tough economic times we're in. Health care is truly a pocketbook issue for both employers and employees."

News You Can Use: Workers foregoing health coverage over cost

Did you have fewer takers this year during open enrollment? Blame the economy.

New survey results from BearingPoint, Inc. and Zogby International show that, due to the economic crunch, nearly 10% of employees are more likely to either drop their health insurance plan or switch to a less expensive one with fewer benefits.

Workers making less than $25,000 a year and workers age 18-24 are most likely to switch to a cheaper plan or drop coverage altogether. Among ethnic groups, Hispanics are most likely to put cost over care.

Further, the survey reports 15% of respondents were more inclined to take less medications or forego prescriptions because of financial strain.

News You Can Use: Merit pay increases shrink further

The slumping economy has caused merit pay increases to decrease to 2.8%, down from the 3.71% expected in June. Cost of living increases are budgeted at around 1.2%, and higher among small businesses, states new data from Business and Legal Reports.

Merit increases remain the largest at companies with over 1,000 employees, hovering at around 3%, while cost-of-living increases are the largest at nonprofit companies.












"We are just trying to keep doors open," one respondent reportedly said.

According to the survey, 38.5% of respondents are changing plans because of the economy. An additional 30.5% are considering changes. Only 23.6% are moving forward with initial budget expectations. Nearly four-in-ten companies responding plan to reduce pay, offer smaller or no rate increases (24.4%) or delay effective dates of raises (15.3%).

One respondent said that while they were not freezing increases, they were cutting back on employee's eligible hours.

The survey was conducted in late October via online polling. 541 people responded.

News You Can Use: Losing sleep over the economy

A whopping 92% of employees are losing sleep over the economy, finds new news from ComPsych.

The survey found employees’ biggest concerns are:

• 30% said the cost of living
• 29% said credit card debt
• 14% said their mortgage payment
• 13% said their retirement account
• 3% said their children’s college tuition
• 3% said health-care costs.

"As the largest EAP, our increased call volume has been a reflection of the financial stressors faced by U.S. employees," said Dr. Richard A. Chaifetz, chairman and CEO of ComPsych Corp., which conducted the poll. "Companies are realizing the impact of financial uncertainties upon their workers, and are proactively promoting support services such as EAPs with financial and legal guidance to help employees cope."

News you can't use: Will lick boots to prevent getting the boot

People always say they don't know what they'd do in a desperate situation until actually placed into it. Today's economic crisis is no exception. A new survey by Randstad USA shows that almost three in four employees would go to lengths to protect their jobs.

Check it out, below:

How far employees are willing to go to impress their boss in order to create more job security

	Gen Y age 18-34	Gen X 35-44	Boomers 45-54	Matures 55+
Would do something to impress their boss	80%	72%	68%	62%
Take on additional work/responsibilities	65%	56%	50%	53%
Work overtime	51%	49%	46%	35%
Stay late/come in early to show extra face time	48%	40%	29%	22%
Socialize with my boss out of the office	28%	15%	6%	4%
Do personal favors (run errands)	17%	10%	5%	8%

While employees seem willing to go to great lengths to impress their boss, they draw the line at taking a paycut; only 4% of respondents said they would take a pay cut to ensure job security. Some were willing to take on added responsibilities; 63% of women said they would take on more work while 52% of men said they would.

Overheard At: WARN your employees

Welcome to an exclusive online podcast with Joel Rice of Fisher & Philips, a national labor and employment law firm. In light of the economy, we know employers out there are struggling with difficult decisions regarding layoffs and termination of employees.

Joel is with us today to talk about WARN, the Worker Adjustment and Retraining Notification Act, which requires companies with more than 100 employees to give at least 60 days notice before triggering massive layoffs.

News You Can Use: Workers concerned about finances, but sticking to their financial strategies

Concerned about financial strains, employees want more information about how to handle their retirement plans and personal debts.

Debt, retirement planning and budgeting are the top concerns of employees calling a financial helpline run by Financial Finesse, a Manhattan Beach, Calif.-based financial education firm.

Most frequently, they are seeking information about how to deal with creditors, strategies to reduce debt, whether they are eligible for a hardship withdrawal in their retirement plan, the pros and cons of taking a loan from their retirement plan, and how much they should be saving for retirement.

Amid the crisis in the national economy, basic budgeting questions are up 6% over the same period last year, with workers seeking information about how create a household budget, make ends meet and manage financial affairs after a divorce.

Liz Davidson, CEO of Financial Finesse, says people are being more proactive about getting control over their finances. “People are getting back to the basics and what can I do today” to get in better financial shape,” she adds. “People are coming to reality, what they can and cannot afford.”

Meanwhile, a new survey from the Certified Financial Planner Board of Standards reveals that 78% of investors are sticking to their existing financial planning strategies, while 57% are reviewing asset allocation and 48% are reviewing financial goals. Another 45% are moving assets to lower-risk positions, while 37% are rebalancing their portfolio.

Clients of financial planners maintaining their long-term financial goals, with 45% moving their assets to lower-risk investments and 40% taking advantage of the lower stock prices.

Scone: HR/benefit managers must stand up against benefit cuts in face of economic crisis

Although much of the early response to the economic crisis -- EBN's included -- dealth with the blow to Americans' bank accounts and retirement assets, reports now are surfacing on how the financial slide has affected health care decisions for individuals and families.

And like the rest of the news lately, the results are not good.

According to the Washington Post, the economy’s plunge has forced many individuals to cut back on health care – “split pills, forgo screening tests, delay elective procedures and turn to home remedies as cheaper alternatives.” The paper also reports that hospital bills are languishing and pharmacists see an increased demand for generic medications.

A study this summer from the Rockefeller Foundation shows that even before the floor fell out of the economy, 25% of respondents skipped a doctor’s visit and 10% skipped a visit for their child because of cost.

In a sneak peek at the December EBN, a report from the Segal Co. finds utilization trend rate for hospital services is projected to fall from 3.2% this year to 2.5% next year, while the utilization trend rate for physician services is predicted to drop from 5.5% to 4.3%. The consulting firm points to cost constraints among consumers as one reason for the decline.

Finally, state insurance programs are feeling the squeeze as well, as news came from Hawaii last week that the state will end its universal children’s health insurance program, just seven months after being the first state to implement such an initiative.

Such news is evidence that when it comes to Americans’ health care today and retirement security tomorrow, benefits managers are employees’ first line of defense. The programs you offer, eliminate or enhance are more important than ever. I know your companies are feeling crunched as well, and benefits are top of mind for execs looking for places to aims the fiscal hatchet or scalpel.

But as Segal reports, “the slowdown in utilization may be cause for concern [because] it could also mean that some people are deferring essential medical care because of higher copays and the personal financial effects of the economic downturn.” But “delaying treatment will eventually increase overall health costs as people are forced to seek more aggressive and costly treatment after the condition worsens to a crisis point.”

It’s a classic choice of whether to pay now (in robust benefits, preventive care and wellness programs) or pay later (in higher claims, lost productivity and perhaps even turnover). I believe it’s in your best interest to pay now.

News You Can't Use: Say "ahh" and let the economy soothe you

Were you just a bit disgusted when you heard that AIG had sent their head honchos on a resort retreat just weeks after news of their bailout broke? Just think, they were getting rubdowns and enjoying five-course meals while you were sweating away over open enrollment business in your office.

If you live in Alabama or Florida, you can melt that stress away with a new series of economic themed spa treatments at the famed Robert Trent Jones Golf Trail resorts and spas.

"If you can afford $85 BILLION for AIG to go to the spa---You can afford this!!” said Dr. David G. Bronner, CEO of the Retirement Systems of Alabama.

TREATMENTS:

If your 401(k) has dwindled down to zero, consider a 401(k) facial to smooth away intended wrinkles. It includes a glycolic resurfacing treatment and complimentary admission to a quiet room, steam room, and whirlpools before and after treatment. The Wall Street Journal newspapers can be removed at your request. $100.

If watching the Nasdaq on it's roller coaster runs has left your body aching with whiplash, smooth away stress with the Economic Freefall Refresher. A mineralizing spa body treatment reduces stress and tension, leaving skin soft and smooth. A facial follows, featuring ingredients that stimulate cellular renewal leaving the skin soft, glowing and refreshed. A money manicure completes your refresher leaving money in your pocket. $200.

If you can't "beat" them, join them. Pound out the stress with the "Banker and Broker Bailout" package - an 80-minute therapeutic massage, deep cleansing facial and penetrating location for hydration. Gentlemen's haircut and nail trim will help finish your escape prior to taking on the wizards on Wall Street. Pin-stripe robes no longer available. $300.

For a quick fix in your office, you can even take home "Stress Relief" for $24. A variety of Sprayable vitamins are available in the spa shops.

We're not kidding … these treatments are actually available until December 1 at the following locations: Grand Hotel Marriott Resort, Golf Club & Spa in Point Clear, AL; Battle House, a Renaissance Hotel, in Mobile, AL; the Montgomery Renaissance Hotel & Spa at the Convention Center in Montgomery, AL; Renaissance Ross Bridge Golf Resort & Spa in Hoover, AL and the Marriott Shoals Hotel & Spa in Florence, AL. Not available at the FDIC or local lending institutions.

Image courtesy of Battle House spa in Mobile, Alabama

News You Can Use: Workers crave financial advice

Troubles in the nation's economy may mean more employers will start to offer a financial advice program as part of their work-life benefits, suggests a survey by Workplace Options, a provider of HR services.

Read more on our Web site.

News You Can Use: Market chaos may affect women's retirement outlook

Women may have to rethink their retirement savings strategies due to the shake up in the U.S. banking system and its affect on the stock market, reports the Web site Women's enews.com.

While women's participation in retirement plans has risen considerably relative to men in recent years, they traditionally have been conservative investors. Their accounts are smaller, compared to men's. Consequently, a sudden and huge loss to the account is a major setback in building an adequate retirement nest egg, according to the online magazine. Data on 2007 balances in defined contribution plans shows that women on average hold $19,749 in their accounts, while the mean for men is $32,391.

Alicia Munnell, director of the Center for Retirement Research at Boston College, told Women's enews.com that recent financial crisis will cause many women to reevaluate their retirement plans and strategies. Some women may have to work longer than they had expected to recoup their losses in the stock market, she added.

Related EBN coverage:

• Running the retirement savings marathon
• Ten techniques for communicating about retirement plans

News You Can Use: Information on the financial crisis

Unless you're living under a rock, you know that Washington and the economy are top on everyone's minds. Employers like yourselves are likely wondering what to tell your employees about the health and safety of their jobs, let alone their 401(k)s and 403(b)s.

Editor-in-Chief Kelley Butler promises to issue a must-read Scone posting on that subject later today. But before you read about what to do, you need to get up-to-date.

So check out these must-see updates from this morning's newscasts.

• The Senate votes on a bailout plan tonight. See this morning's Today Show coverage live from Washington.
  
• The New York Times talks about the bailout. (Updated regularly).
  
• What small businesses are doing with the credit crunch, via The Washington Post.
  
• Even if it's bad news, you still want to know what the markets are doing. Check it out here, via the NYT stock info page.
  
• Want the best and most up-to-date banking news? Our sister publication, American Banker gets the scoop before all other major news outlets.
  
• Senator Dodd talks bailouts, via CNN.com.
  
• Interactive map showing how the US economic crisis is affecting the global economy, via MSNBC.
  

News You Can Use: Easing employees’ market jitters

The market is in turmoil with no end in sight, which no doubt is raising questions and anxiety among employees.

If you don’t send routine communications to your employees (clients) on the health of your (their) retirement plan, now is a good time to consider doing so. An example of a great communications piece is an e-mail sent this week by Reliance Trust Company, a custodian to some 15,000 401(k) plans.

Entitled “A view of the current market – where we are, what we are doing and what we think,” the memo to clients and Reliance employees recaps the market situation in the wake of the Lehman Brothers bankruptcy, details the company’s response and offers advice to investors on what to do now.

“In a turbulent market, it’s good to periodically speak out on what’s going on and why you think it’s going on,” says Tony Greene, Reliance’s senior vice president. “The communication today directly addressed people’s biggest concern – the Lehman failure – and the global concerns people may have about general market movement. We also [underscored] that these types of times are why in good times you do balance portfolio strategies.”

While Greene acknowledges that plan sponsors’ communication philosophies differ, he sums up Reliance’s this way: “We think it’s better to tell people what’s going on, why you think it’s happening, and what the impact may be. It’s always good to communicate where you are and why decision made.”

News You Can Use: Misery index up ... so keep the low-cost benefits coming

I've heard of unemployment numbers, costs being "indexed" for inflation, and even poll's predictions for America's happiness or unhappiness at any given time, but apparently a misery index exists as well.

According to new data from the Campaign for America's Future, new jobless numbers are at a five-year high (6.1%) and the misery index is hovering at 11.7%, the highest since 1991 and the first time in double digits (as of June 2008) since 1993.

"Honest people who work hard for a living are struggling to make ends meet," said Robert Borosage, co-director of the Campaign for America's Future. "The misery is felt at the gas pump and the grocery store and it's getting worse, not better."

But with this September 1 article, "Being top dog doesn't have to cost a lot," you can at least help by offering your employees low-to-no-cost benefits.

News You Can Use: SMBs unhappy with Washington

News You Can Use:
Small business owners are dissatisfied with the current state of the federal government, finds a poll released this morning by American Management Services.

81% feel we are in an economic recession
• 78% feel economic stimulus checks are useless
• 86% say the federal government is doing “nothing” or “little” to help small businesses
• Labor costs and inflation considered much larger problems than healthcare
• 72% believe that the federal government bailing out Wall Street and big business
• 80% have no idea what McCain’s and Obama’s platforms are on small business
• Romney and Clinton are overwhelming choice of VP candidates for small business owners
• 90% of small businesses did not participate in the administration’s small business week
• 77% feel that the U.S. needs to open up the restricted oil reserves in Alaska, and off-shore in Florida and California

Read the full article, "SMBs favor economic reform," here.