A worksite benefits carrier says 62% of small business executives are finding it harder than they did a year ago to offer attractive employee benefits.
Aflac’s recent study of more than 500 small business executives found that companies that saw revenues fall over the past year are particularly pressured to reduce insurance costs, cut back on employee benefits and slash wages.
According to the study, 69% of businesses with reduced revenues are finding it more difficult to offer strong benefits packages, compared with 56% of companies whose revenues stayed the same.
“Employers are concerned about losing employees to competitors with better benefits packages, even while they may be struggling to reduce costs and make ends meet,” said Paul S. Amos II, president and chief operating officer of Aflac Inc., Columbus, Ga.