Transforming Benefits Financing and Design

Source: Don R. Heilman, HR News, Vol. 79 no. 2, February 2013
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The last 10 years have created a unique challenge among public sector employers in establishing, and delivering on, an organizational total compensation strategy. A number of factors have contributed to, or exacerbated, this challenge:
■ Initial Shift in Total Compensation
■ Economic Downturn
■ Lagging Recovery
■ Higher Benefits Costs
■ Retiree Health

… The net effect of these impacts is that the public sector’s costs for benefits have increased at a greater rate than for the private sector, and now represent an even greater proportion of total compensation than in prior years. This creates a real dilemma, in both finding the revenues and in convincing elected officials and policy makers to increase salaries to attract and retain talented employees without some tradeoffs in the level of benefits…